Brazil's exchange rate weakened this past week, and that could encourage an expansion in the country's soybean production to 100 MMT compared with last season's approximate 95 MMT. Soybeans Brazil's exchange rate weakened to four reals per U.S. dollar this past week. That could encourage an expansion in the country's soybean production to 100 MMT compared with last season's approximate 95 MMT. The prospective returns from the Argentine soybean production are less appealing because of a higher domestic inflation rate that is basically erasing any potential advantages from a weaker peso. Obtaining a stable income in Argentina is more difficult when the annual inflation rate causes the cost of production to rise by more than 25 percent. Neve...
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.