Earlier this week (see WPI 11 December) we wrote that the potential reinstatement of the biodiesel blenders' tax credit could impact Brazilian sugar ethanol imports into the United States. Today we look at the Brazilian ethanol industry's problems maintaining its profitability.Ethanol producers in the United States sell their product to be blended with gasoline that is privately refined and marketed. In Brazil, however, ethanol makers deal with a government-owned entity, Petrobras. Unlike private oil companies that want to maximize their profits, Petrobras wants stable prices at the pump to keep taxpayers happy. There is in fact a cap on gas prices that Petrobras subsidizes. This cap comes at a cost to both Petrobras and cane ethanol refi...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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Accountability and a comprehensive approach to export programming
WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.