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Only rain needed for bright agriculture outlook
3 Apr 2007
Economists believe that Australia’s $100 billion agricultural sector is set for a post drought rebound, with commodity prices as high as they have been for 20 years. "Commodity prices are fantastic at the moment," Denita Wawn, acting chief executive of the National Farmers Federation said. "The big issue is reduced production. Farmers can't take advantage of the prices...it all depends on rain." Australian farms and related industries make more than $100 billion in production, about 12 per cent of gross domestic produce (DGP). Farm exports are valued at $28 billion, about 20 per cent of all exports. This financial year the drought was said to have reduced the GDP by 0.75 per cent. The buoyant agricultural outlook comes as the Reserve Bank of Australia is likely to raise interest rates.
The Age, 03/04/2007
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