The lowest cost producer is generally thought to have the advantage on market share, assuming all other resources are available. Indeed, Russian farmers have the lowest reported producer price for wheat and have the largest global export share. However, that is where it ends. The EU reports a higher average producer price but commands a larger share of global wheat exports than some lower priced producers. However, this could relate to quality, the cost of shipping and other intermediaries, etc. There may also be flaws in the producer price data. India and Argentina are both major global suppliers of wheat but do not report a producer price to the FAO. There may also be government programs that distort the outcome. Most impressive in...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.