China’s pork imports have increased from 100 KMT in May of 2018 to nearly 350 KMT in November of 2019. That means that China’s increased need for pork in 2019 required the absorption of one-third of the world’s surplus product. Notably, the EU was the main supplier of the increased pork imports. Sixty percent of the surplus pork stocks are held by Japan and South Korea, likely for food security purposes. Due to retaliatory duties, the U.S. was not fully competitive, and the EU was constrained by limited supplies following supply reductions in 2018. In fact, EU pork ending stocks are classified at zero and with production flatlined at best, domestic consumption sacrificed shares to China’s import needs. Chinese...
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.