Exchange rate effects and the Canadian food and beverage sector

Examining how currency fluctuations influence trade performance and competitiveness within Canada’s food and beverage manufacturing sector

Kenrick Jordan, School of Business

About the project

This research explored the relationship between Canada-U.S. exchange rate movements and the performance of Canada’s food and beverage manufacturing industry. As exports become an increasingly important part of the sector, understanding the impact of currency changes is critical for business planning and long-term growth.

The challenge

Food and beverage manufacturers operate in an increasingly global marketplace where exchange rate fluctuations can influence export competitiveness, import costs and overall business performance. The project sought to better understand how different segments of the industry respond to these changes.

Approach

• Analyzed economic and trade data from Canadian and U.S. sources
• Examined trends in exports, imports, shipments and productivity
• Applied econometric modelling to assess the relationship between exchange rates and trade activity
• Compared impacts across different segments of the food and beverage sector
• Investigated how exchange rate sensitivity may have changed over time

Results

• Quantified the relationship between exchange rate movements and net exports
• Identified differences in how industry segments respond to currency fluctuations
• Generated insights into factors that influence trade performance and competitiveness
• Developed a framework for evaluating exchange rate impacts across the sector
• Produced evidence to support future business and policy decision-making

Why it matters

• Helps businesses better understand and manage exchange rate risks
• Supports more informed export and growth strategies
• Provides insight into factors affecting sector competitiveness
• Contributes to evidence-based economic and industry planning
• Strengthens understanding of trade dynamics in a global marketplace