ABARE Forecasts Another Record Year for Commodities Exports

Australian commodities exports are set to reach $90.5 billion in 2001-02, another record level, Trade Minister Mark Vaile said today.

Mr Vaile was commenting on Australian commodities forecasts released today by ABARE.  

"Rural exports are expected to rise by 4.3 per cent to reach a record $34.8 billion in the 2001-02 financial year, aided by higher prices for beef, wheat and dairy products," Mr Vaile said.

"This will mean strong growth in farm incomes for the second consecutive year, with the net value of farm production forecast to rise by 16 per cent in 2001-02 following a 53 per cent increase in 2000-01.

"This will bring new employment and growth to rural areas," said Mr Vaile.

"Wheat exports are forecast to increase by 13 per cent, beef and veal exports by 3 per cent, while diary exports are expected to experience a 20 per cent increase.

"There is also good news for Australia's mining sector, with coal, iron ore and pellets, gold, alumina and aluminium exports expected to record strong growth in 2001-02.

"Coal, Australia's major commodity export, is expected to perform particularly strongly, with export growth of 23 per cent forecast, translating into exports worth $13.3 billion in 2001-02.

"The ABARE report confirms exceptional growth in commodities exports for the 2000-01 financial year, with mineral and rural exports reaching $90 billion, a rise of 24.5 per cent over the previous financial year.

"The positive news on commodity exports is reflected in broader trade data, with exports of goods in the twelve months to October 2001, up 16 per cent over the previous year.

"Commodities exports contributed strongly to the trade surplus of $275 million in October, the ninth consecutive monthly surplus," said Mr Vaile.

Australian Commodities Forecasts and Issues, December quarter 2001, published by ABARE, contains an overview of the performance of & prospects for the Australian primary commodities sector.  ABARE is the leading provider of public policy analysis and commodity forecasts for Australia's rural and resource industries.