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Mercosur Regional Analysis

Export Quota Update Finally, the Argentine government implemented a so-called “new” system to control wheat and corn exports. The “new” system is, of course, aimed at preventing domestic shortages with the final objective of controlling inflation, which now exceeds 50 percent annually. Based on total production for a crop, the government will establish “equilibrium volumes” for grains that set export volumes. What is not yet clear is how that quota will be distributed across the different exporters. In the past, the government has used factors such as exporters’ past performance in order of registering, friendship, etc.  The government can call the system what it likes, but in the end it is t...

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feed-grains soy-oilseeds wheat

Summary of Futures

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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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