Farm incomes on the rise again
20/12/2001
Rural export earnings are on the rise again, forecast to climb from $29.4 billion in the past financial year to $30.9 billion this year according to the latest ABARE report. Federal Trade Minister Mark Vaile said this would mean strong growth in farm incomes for the second consecutive year, with the net value of farm production likely to lift by 16 percent in 2001/02 following the massive 53 percent increase last year. Beef, wheat and dairy products were expected to lead the boon, which Mr Vaile said would bring new employment and growth to rural areas. Overall, Australia's competitive currency is expected to help lift the nation's commodity export earnings to about $90 billion by the end of this financial year - close to last year's record figure. ABARE's executive director, Dr Brian Fisher, said the weaker exchange-rate was likely to offset the adverse effects on lower commodity prices on world markets. For the farm sector, the low Australian dollar was expected to combine with an anticipated lift in the value of agricultural exports - due to tighter global supplies - to support the industry. Agricultural commodities where export earnings were forecast to rise included wheat, barley, rice, sugar, wine, beef, veal, lamb, live cattle, live sheep and dairy products. Farm export prices were likely to rise by about 5 percent overall, following a massive surge of 20 percent in the 2000/01 financial year. The average pool return for Australia Premium White wheat was likely to be $250 a tonne, about 8 percent more than last year. Meanwhile, the saleyard indicator price for beef was expected to average 310 cents a kilogram dressed weight, fully 17 percent higher than in 2000/01. However, ABARE said the benchmark eastern market indicator price for wool was forecast to fall by about 3 percent to an average of 740 cents a kilogram.
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