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Stronger dollar could impact meat exports

The U.S. dollar has recently strengthened against most foreign currencies, which makes for a tougher pricing environment for U.S. beef and pork exports.

That’s according to U.S. Meat Export Federation economist Erin Daley Borror. 

“Today, if we compare currencies back to one year ago, we’ve seen an actual appreciation in the Japanese yen and the Chinese renminbi, but recent devaluations in most other import markets—especially Mexico, Korea and Russia, with purchasing power dropping as much as 10 percent for Mexico and smaller devaluations in the other countries,” Daley Borror says.

Daley Borror says that can affect U.S. beef and pork exports both in terms of customer purchasing power, and when priced against the currencies of major competitors such as Brazil, Australia and Canada.

“The Brazilian real has had the most significant drop, trading off about 13 percent from its July values,” she says. “The Australian and Canadian dollars are also weaker than they were during much of this year—but they’re basically steady to higher than they were exactly one year ago.”

But Daley Borror remains confident that U.S. meat exports will post a solid performance through year’s end because global demand remains strong.

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