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Wed June 20, 2012
Would Greece Leaving The Eurozone Make Greek Yogurt Cheaper?
Originally published on Thu June 21, 2012 12:38 pm
Johnny Johnson poses this question on our Facebook page:
If Greece exits the Eurozone would that mean my Greek yogurt would no longer cost 2 bucks a pop?
The short answer is no. The two biggest Greek yogurt companies in the U.S., Chobani and Fage, both make yogurt here in the U.S. The raw ingredients they use to make their yogurt for U.S. consumers also come from U.S. producers. Greece getting rid of the euro and going back to the drachma wouldn't matter for them.
But other products would get cheaper. Olives, for one. According to the USDA, the U.S. imported over $100 million of olives from Greece in 2011.
The drachma would be worth much less than the euro. This would make Greek exports, including olives, cheaper on the world market.
A return to the drachma would also make Greek hotels and restaurants cheaper for travelers from the U.S. and other countries. A vacation to Santorini might suddenly sound like a good bargain. This is a big deal, because tourism makes up over 15 percent of Greece's GDP.
If Greece were to leave the euro and go back to the drachma, it would be a huge disruption for the economy in Greece and beyond. Still, some economists arguethat returning to the drachma — effectively lowering the price of Greek exports — is exactly the boost that Greece needs get its economy back on track.