The joint OECD/FAO annual Agricultural Outlook report issued yesterday says that global meat consumption will grow by 12 percent over the coming decade (2020-2029). They also predict that half the increase in consumption will occur in poultry due to its lower cost. However, USDA’s forecast for global meat trade over that same period shows a larger gain for pork. The OECD/FAO forecasts that real prices for beef will decline the most over the period, though pork and poultry prices will also decline. Meat consumption is at a low point this year due to COVID-19 and African Swine Fever. The latter problem maybe why USDA sees stronger growth for pork trade than for poultry. Either way, the OECD/FAO correctly notes that forecasts invo...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.