The U.S. currency’s continued value decline may affect U.S. beef, pork and poultry product exports in 2009, according to the CME Group’s Daily Livestock Report.
Shifts in currencies tend to change the relative price that consumers around the world see, thus providing an incentive or disincentive for consumption, according to the report.
The increase in value of the U.S. dollar until March 2009 balanced out the price of exports. Even though the price of some meat export items were somewhat lower compared to last summer, the decline in price was more than offset by the rise in the value of the U.S. currency.
However, with the continued decrease in the U.S. dollar seen in the report's chart, lower overall prices will not be offset by the value of the dollar. It could also mean making world buyers more competitive with the U.S. consumer.