Research
Implications of the US elections for food and agribusiness in Australia and New Zealand
The US presidential election is an important geopolitical event, even for Australian and New Zealand food and agribusiness. Regardless of the outcome, F&A sectors must maintain focus on profitability drivers, optimization, and diversification of overseas products and markets. Whether Australian and New Zealand agribusiness sectors thrive or not will depend on how well they prepare for the myriad possible outcomes.
Global markets are crucial to Australia and New Zealand’s economies, as both countries are highly dependent on exports to market their agricultural production. This exposes the local agricultural industries to overseas risks, such as political swings, trade policies, and currency volatility.
The US election’s outcome may cause shifts in US internal and external policies, regardless of the winner. Any changes in the US government’s agenda reverberate in global trade due to the US’ large role in the global economy, its heavy footprint as a food importer and exporter, and its role as a key geopolitical player.
Whether the Australian and New Zealand agribusiness sectors thrive or not following the potential shifts in the macro scenario will depend on how good they are in preparing their business strategies for the myriad of possible outcomes ahead.