Fed: Higher prices, lower dollar mean record exports

AAP General News (Australia)
12-19-2000
Fed: Higher prices, lower dollar mean record exports

Higher world prices and the lower dollar are forecast to lift Australia's farm and
mineral exports 16 per cent to a record $83.9 billion this financial year.

The official commodities forecaster Australian Bureau of Agricultural and Resource
Economics says farm, mineral and energy exports will all grow strongly, although wheat
will be hit by the recent floods.

ABARE's acting executive director VIVEK TULPULE says the forecast increase in commodity
export earnings is underpinned by higher global prices for many commodities, greater volumes
shipped and a markedly lower Australian exchange rate.

The value of farm exports is forecast to rise 9.1 per cent to $26.4 billion, which
is the second consecutive rise and the best result on record.

Wheat production is forecast to fall 22 per cent to 19.6 million tonnes, and exports
13 per cent to 15 million tonnes.

However, the export bonanza will be of little comfort to farmers.

ABARE is forecasting rising costs and lower production will cut the value of farm income
by 11.6 per cent.

AAP RTV ss/daw/klw/jx

KEYWORD: ABARE (CANBERRA)

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