One thing which certainly has been sparked by the fire at the Tyson meatpacking plant in Kansas is the age old producer versus packer tensions among more populist producers. A social media campaign started last week in response to the market data since the 9 August fire. Packer margins shot up after the fire, driven by retailers booking purchases and driving up the price of boxed beef while the fed cattle market suffered from oversupply versus capacity to process them. Much of the effort is centered on a social media blitz using the hashtag #FairCattleMarkets. The Organization for Competitive Markets (OCM) is involved. The group has been at the forefront of efforts to end the Beef Checkoff in the past, as well as supporting the origi...
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.
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...