Commodity exports to hit record $189bn

By Adam Gartrell
March 04, 2008 08:50am
AUSTRALIA'S commodity export earnings are tipped to rise to record levels next financial year.
The Federal Government's commodity research agency has forecast earnings will increase by 30 per cent to a record $189 billion in 2008-09. The Australian Bureau of Agricultural and Resource Economics (ABARE), in its March issue of Australian Commodities, said the developing world's thirst for commodities would continue to drive growth in export earnings in the period ahead. ”The growth in export earnings forecast for 08-09 mainly reflects increased shipments of iron ore, coal, gold, LNG, grains and oilseeds in response to strong demand in overseas markets,'' ABARE executive director Phillip Glyde said. The total value of Australia's minerals and energy exports is forecast to rise by 33 per cent to a record $153 billion next financial year. Ore No 1 exportIron ore is expected to be Australia's largest export commodity, in value terms, in the coming financial year, followed by metallurgical coal, thermal coal, gold and crude oil. ”Over the medium-term, the value of Australian commodity exports is projected to rise in real terms to $187.3 billion in 2009-10 before gradually easing toward the end of the projection period,'' the report says. ”By 2012-13, Australian commodity exports are projected to be worth around $176 billion (in 2007-08 dollars), 21 per cent higher than the forecast value in 2007-08.'' Farm sector doing OKIf seasonal conditions are average, the value of farm exports is forecast to be $31 billion in 08-09, an 18 per cent increase on the previous year. ”The medium-term outlook for Australia's agriculture sector is strong in historical terms as a result of high global commodity prices and continued high levels of farm equity,'' the report says. But despite rising terms of trade, the farm sector faces a number of ongoing challenges, including increased competition from overseas producers and a strong Australian dollar, the report says. ”Further challenges emerging over the medium-term include increasing farm costs resulting from the introduction of an emissions trading scheme and other policies to address climate change.''