Strong economy on beef export marketStrong economy on beef export market
A strong economy means a strong dollar, so what does that mean for the U.S. agricultural export market, particularly the beef sector?
February 14, 2017
According to U.S. Meat Export Federation economist Erin Borror, the U.S. has been in a strong-dollar environment for at least the past two years. However, U.S. beef should remain relatively affordable for international customers.
“A stronger dollar means that it takes more of an international customer’s currency to purchase U.S. beef and in most cases means our competitors benefit from relatively lower prices due to their weaker currencies. Overall, the strong U.S. dollar has also fueled larger imports into the U.S., although beef import volumes slowed significantly in 2016 as supplies in Australia tightened and U.S. beef prices declined on larger U.S. production,” she says.
“Lower U.S. beef prices and some moderation in the U.S. dollar helped drive U.S. export growth in 2016. In 2017, with continued growth in U.S. beef production, prices will likely remain well off the highs seen in 2014 and early 2015.”
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