The trade war has sparked curiosity about whether it will do long-term damage to the U.S. soybean industry. The answer is a bit complicated. Theoretically it will if it lasts a long time, but “damage” is a relative term. The U.S. grows a lot of soybeans (plus wheat and corn) because it has the appropriate agronomics for it. The agronomics are so good that many different plants could be grown but land is allocated to the greatest return on investment. If soybeans aren’t selling, there will be the search for whatever else will cash flow. It should be noted that government support programs have their influence but in a 1980’s modeling exercise assessing the implications of a multilateral agreement that eliminate...
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.