Lecture Notes: Prodding the Cattle Biz

Harvard's Magna Carta Discovery

• Harvard Law School bought a supposed unofficial copy of the Magna Carta in 1946 for $27.50.
• Recently revealed to be a rare official version from 1300 by King Edward I.
• Only six other versions were previously known to exist.
• Harvard's copy was mislabeled as from 1327; it's now worth millions.
• A 1297 Magna Carta sold for $21.3 million in 2007.

Inflation & Prices: Walmart and Tariffs

Walmart Price Hikes

• Walmart plans to increase prices due to tariffs despite a trade war truce with China.
• US reduced duties on Chinese imports from 145% to 30%.

Impact on Walmart

• Walmart's imports from China account for only 15% of US sales.
• 60% of Walmart's US sales are groceries, mostly domestically sourced.
• CEO Doug McMillan mentioned tariffs impact on items like bananas and avocados.
  • Example: Banana prices increased due to tariffs.
• US comparable sales rose by 4.5%, but revenue missed expectations.
• Fed Chair Jerome Powell indicated interest rates might stay higher due to volatility.

US Beef Prices and Cattle Industry

Rising Beef Prices

• Beef prices hit record highs due to thinning cattle herds.
• April prices: Ground beef at $5.80 per pound; uncooked beef steaks at $11.12.

Cattle Herd Dynamics

• High feed costs lead to herd thinning.
• Beef cow herds fell to 28 million heads, the lowest since 1961.
• Current cattle cycle began in 2014; contraction phase since 2020.
• Despite high prices, herd growth hasn't occurred yet.

Industry Reactions

• Kroger sees beef as an inflation outlier.
• Tyson Foods managing limited cattle availability with discipline.
• Industry forecasts suggest potential herd growth if trends follow historical cycles.

Social Media and Influencer Economics

Whalar Group Valuation

• Influencer agency Whalar Group valued at $400M.
• New investors include Salesforce CEO Marc Benioff and Shopify.

Influencer Marketing Trends

• Creator economy projected to be a $480 billion industry by 2027.
• Whalar excels with brand deals, making up 70% of sector revenue.
• Unique campaigns leverage multiple creators for viral movements.
• Collaborations include well-known influencers like Martha Stewart.

Summary

• Whalar Group uses social media creators for culturally relevant marketing.
• Pays out $300 million to influencers across platforms like TikTok and Instagram.
• Acquired UK creator agency Sixteenth to expand reach.