Surplus butter stocks are at their lowest level in years and its price has increased 80 percent faster than already inflated overall grocery prices. The causes include a contracted dairy herd due to higher feed costs, a lack of labor at processing plants, and the bias toward other dairy products (milk, ice cream, cheese) in the dairy class price system. Chicago futures indicate that prices will moderate over the coming year, dropping by 25 percent in the October/November 2023 deferred contracts. Between now and then, butter imports are near their record level in 2020, and margarine made from low-linolenic soybeans or alternative processing provide a substitute. Animal welfare and environmental regulations may lead to the next push hi...
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
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.