J.P. Gervais, FCC Vice President and Chief Agricultural Economist explains the pros and cons of a low currency environment and how it influences the agricultural food chain.
• Canadian dollar major driver of profitability over last few years
• Weak loonie supported prices producers received and what they sell in foreign markets
• Food processors have done largely better in low Canadian dollar environmen
• Low dollar impacts agribusiness because of increased cost of equipment, feed, fertilizers
• Overall, low currency has more benefits than drawbacks