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Report: Effect of global economic crisis on agriculture trade

The Economic Research Service of the US Department of Agriculture has released a report that investigates what the 2008/2009 world economic crisis means for global agricultural trade.

The global economic crisis that started in late 2008 has led to a sharp curtailment of international trade, including a short-term decline in the value of global agricultural trade of around 20 percent.
 
While not uniform across commodities and regions, the trade impact appears to be stronger on crops than on livestock.
 
Global agricultural trade after slowing will continue to grow in the future.
 
Economic growth prospects of emerging and developing countries will be important in determining composition of trade toward increased high-value products.
 
The crisis is leading to a realignment of exchange rates, and the ultimate resolution of the crisis will depend on adjustments in the exchange value of the US dollar.
 
The US agricultural sector would benefit from a depreciating dollar, which results in high export earnings, high agricultural commodity prices, increased production, and increased farm income.
 
Full report can be read at USDA ERS website (pdf)
 

Dick Ziggers

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