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feed-grains soy-oilseeds livestock

China In-Country Analysis

Livestock China’s Live Hog Producers Confront the Scissors Effect Record feed costs, historically high piglet prices, biosafety costs, and declining live hog and pork prices have created the dreaded scissors effect for many hog producers. The scissors effect, a term from corporate finance, results from a situation of rapidly rising operating costs and declining sales revenues. Through last Friday, the national average live hog price was down 5.7 percent or RMB 1.25/kg ($.19/kg) or RMB .57/lb. ($.08/lb.). This marks the lowest price level since mid-July 2019, roughly three weeks before the first African Swine Fever (ASF) cases showed up in China. The average profit per live hog also fell to its lowest average since the third week of...

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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.

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