World Perspectives
livestock

Disconnected Beef

U.S. cattle ranchers predictably reacted negatively to President Trump’s suggestion of importing more Argentine beef to lower prices for consumers. The President called on ranchers to lower their prices even though they are set by the market based on supply and demand. Jawboning will cause a temporary decline in prices, but sellers will get their due. He also said that the tariffs he imposed had “saved” cattle ranchers. Beef imports have increased despite the tariffs and the decline in the supply of feeder cattle is due to SPS restrictions on imports from Mexico related to the New World screwworm outbreak.  Meanwhile, the Administration announced some helpful and some unrelated policy initiatives. Lowering the barrier...

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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.

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