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Unformatted text preview: Title of the project: The Impacts of Exchange Rate Volatility on U.S. Poultry Trade Flows Statement of Issue: The U.S. export market for red meat and poultry has experienced substantial growth over the last six years. In 2009, the total red meat, poultry, and eggs exported to foreign countries totaled 13,480 million pounds, an increased of 38 percent when compared to 2003 (9,740 million pounds). Of total meat exports in 2009, poultry accounts for over 55 percent making it the leading meat export that year. Additionally, poultry has been the leading meat export for the past seven years. Broiler and turkey meat account for the majority of U.S. poultry exports. At present, the U.S. is the second largest broiler exporter in the world with Russia being its top market since 2003. For turkey, the U.S. is the world’s largest exporter with Mexico being its largest import market. The global economic crisis which has affected a number of importing countries could jeopardized the U.S. position as a leading poultry exporter. Consequently, the currencies of some trading partners have depreciated relative to the U.S. dollar which may cause U.S. poultry exports to decline. For instance, during the period 2002- 2009, Mexican importers experienced significant variability and uncertainty in purchasing power due to fluctuations in the Peso/U.S. dollar exchange rate. Given these macroeconomic issues the following questions arise for the U.S. poultry industry: (1) Will the effects of macroeconomic decline in major import markets for the U.S. negatively affect broilers and turkey exports? (2) How does exchange rate volatility affect U.S. broilers and turkey and turkey exports?...
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This note was uploaded on 05/25/2011 for the course ACG 2021 taught by Professor Montgomery during the Summer '08 term at FSU.
- Summer '08
- Financial Accounting