The impact of currency devaluation on us poultry exports
MetadataShow full item record
The objectives of this study were to describe the Russian market for imported US poultry meat in the 1990s and to analyze the impact of the Russian ruble devaluation on the volume and value of US chicken leg quarter exports to Russia. The currency devaluation shock was simulated using the Global Trade Analysis Project (GTAP) as combined effects of a subsidy on all Russian exports and tax on all imports. The results include changes in world poultry prices, trade and production. Following the 75% ruble depreciation, Russian poultry imports fell and domestic prices of poultry and other foods rose. US poultry meat exports to the Russian market declined, pushing more dark meat onto the domestic market and other export destinations. Prices in the US wholesale market fell. Thus, exchange rate changes in a primary export market had a ripple effect on the commodity in both the importing and exporting country.