The pricing of goods in a transparent market should divide value according to the respective value-added by each segment in the supply chain. Market failures involving imbalanced distribution of returns relative to value added are typically caused by inadequate transparency, though there are other causes. In France, unhappiness with the distribution of returns has led to a negotiated outcome. Based on some data, it should be consumers in the U.S. that are dissatisfied with the market. Comparing the retail price for unprocessed fresh produce in some major capital cities, the cost of onions generally follows the overall cost of living in each respective location. However, the cost of apples in Washington, DC is 57 percent higher than i...
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.