Through a combination of cyclical factors and disease, 2023 promises to be a year with less meat. The poultry industry has had HAPI outbreaks at 492 commercial and backyard flocks in 40 states. The cattle herd is contracting due to herd liquidation amidst drought and high feed costs. As a result, markets will be turbulent, but returns will be higher. The Biden Administration has sought to smooth the problems of the past few years by subsidizing small packer startups, and new legislation will focus on increased industry transparency, plus conducting audits and oversight. USDA Secretary Tom Vilsack said the legislative package “will support USDA’s operations and help make USDA more efficient, effective and better equipped t...
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.