June 7, 2011
Australian agricultural exports rises on-year
The value of Australia's farm exports has increased to nearly 33% as compared with the previous year, according to the National Australia Bank (NAB).
Despite a strong Australian dollar, the value of agricultural exports rose 32.9% which translated to a volume increase of 4.6%.
The NAB's economic report states "freak weather globally" lead Australia to become one of the few places to source agricultural commodities which meant export earnings surged.
The total value of Australia's exports for 2011-12 is forecast to tip US$32.2 billion.
Top earners are the beef and veal industry and wheat exports, both worth US$4.4 billion.
The bank believes the outlook for agricultural exporters remains strong over the medium-term, however it noted earnings may pull back a little over the year.
A strong Australian dollar is unlikely to damage margins significantly, the report states.
According to the report, Australian beef exports were down 0.5% to 92.3 million tonnes last year but earnings were buffered by rising prices.
