We are now starting to see the headlines in the more traditional news arenas reflect concerns about the crash in profits across the agricultural spectrum.The substantial impact that the low-price environment is going to have on all levels of the agricultural supply chain has been covered a number of times. This chain includes every tier from farmers through crop input companies (seed, fertilizer, chemicals, machinery, etc.), grain handlers and the transportation system. The key is that when prices and farm profits are high, so too are operating margins throughout the entire system. That has been the case during this longest bull market in history. When prices and operating margins collapse at the farm level, the same must occur at every oth...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.