# Falling Canadian dollar



## Dominic (Jul 12, 2013)

Higher costs for materials and equipment that we buy, either directly or indirectly, from the States... As we don't export, it's no good for us.


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## Haraga (Sep 12, 2011)

I haven't checked lately but is it possible the US dollar is rising as opposed to the canadian dollar falling? If that's the case, I don't know why as the US economy is so shattered that the US dollar should be worth about 50 cents.


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## Dominic (Jul 12, 2013)

In most cases, it comes down to the same thing. In the end, it's the USD:CAD ratio that matters, regardless of why it changed one way or another. If the canadian dollar is relatively strong, exports are harder and imports are cheaper. For a business like ours that doesn't export anything, a strong dollar is a good thing, because it lowers our costs. For a business that exports more than it imports, the opposite is true.


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## irwin harlton (Jan 7, 2005)

Canada is a producer ,exporter of raw products,....hewers of wood ,drawers of water,sellers of oil.The US is our largest trading partner , market.The US industrial,military, financial complex,which dominates the world ,and is the worlds reserve currency, determines what the Canadian loonie is worth in US value.That loonie is going to be playing a little limbo .....how low can it go?


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## JohnK and Sheri (Nov 28, 2004)

Please keep this discussion on topic to marketing honey. A broad economic discussion is off topic and more suitable for tailgater.
Thanks,
Sheri


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## Ian (Jan 16, 2003)

JoshW said:


> The Canadian dollar is below .90USD. How does that affect your operation? Are you looking south for business opportunities?


I just bought a new honey machine out of Nebraska, ... the currency hit me the wrong way this time... I happen to be buying in foundation also,,,
But the dropping dollar will help improve my overall sales, "how low can it go?" ... remember the 75cent buck  now give us that in this market! $$$


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## mgolden (Oct 26, 2011)

Researching the internet, it appears that Canada exports aprroximately 50% of the 90 million pounds of production. The US market accounts for ?85% of Canadian exports.

I know a local commercial honey producer(900 hives) who sells his production using a broker and some of his honey is going to the US. I don't know the percentage.

A lower Canadian dollar makes Canadain honey more affordable in foreign markets. This generally results in larger volumes of exports and a higher price to the producer.


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## Colino (May 28, 2013)

Dominic said:


> In most cases, it comes down to the same thing. In the end, it's the USD:CAD ratio that matters, regardless of why it changed one way or another. If the canadian dollar is relatively strong, exports are harder and imports are cheaper. For a business like ours that doesn't export anything, a strong dollar is a good thing, because it lowers our costs. For a business that exports more than it imports, the opposite is true.


What you say is true, the only thing I have to add is that the new Governor of the Bank of Canada does not even acknowledge the Canadian Honey producers. He's only interested in Eastern Manufacturing or the Western Oil and Gas producers. He wants to crash our dollar, so our best bet is to consider this when we are making our marketing decisions this year. I'm not looking at purchasing any new equipment this year from the US and I'm glad I've already locked in the price for my packaged Bees.
Colino


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