September 21, 2011

 

Australia's agricultural export earnings may rise

 

 

Australia's agricultural export earnings are expected to rise and reach record levels in 2011-12, according to the Australian Bureau of Agricultural and Resource Economics and Sciences commodities report.

 

The record earnings predicted to be AUD34.6 billion (US$35.5 billion), up 6.5% on 2010-11 in spite of the shocking state of many developed countries' economies.

 

ABARES deputy director Terry Sheales said economic growth in Asian countries was "expected to provide support to demand for Australian agricultural exports" despite "considerable uncertainty associated with the economic outlook for some major OECD countries".

 

Agriculture Minister Joe Ludwig said the forecast was "fantastic news for rural communities".

 

"This is great news for Australia's agricultural, fisheries and forestry exporters and a testament to the hard work and innovative approaches adopted by producers," he said.

 

Senator Ludwig said export earnings for crops were forecast to increase by around 13% in 2011-12 to AUD20 billion (US$20.5 billion), while export earnings for wheat were forecast to rise by 16% to around AUD6.4 billion (US$6.6 billion).

 

Other commodities for which export earnings were forecast to increase in 2011-12 include canola at 8%, raw cotton at 63%, rice at 377%, wool at 1% and sheep meat at 6%, he said.

 

ABARES upgraded its predictions on this financial year's earnings in response to higher farm production than it had expected.

 

Good commodity prices would more than offset the high Australian dollar, according to ABARES.

 

Export earnings from wheat, wool, rice, canola, raw cotton and sheep meat are all expected to increase.

 

Crop production was expected to rise 3.8% and livestock by 1% as wool and milk production increased.