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Benchmark April18

Agricultural Overview Exports 1.2 1.1 1.0 0.9 0.8 0.7 4 | www.landmarkharcourts.com.au The Australian dollar has rebounded higher over recent months A lower Australian dollar is generally a positive outcome for the economy; promoting exports and boosting demand for Australian products and services. At the end of January 2018, the Australian dollar was trading at US$0.8073; its highest end of month values since December 2014 but still 26.3% lower than the 2011 peak when the Australian dollar was trading at US$1.10. Recent exchange rate forecasts from Westpac’s economic team indicate the Australian dollar is likely to reduce in 2018. A lower exchange rate would provide additional stimulus for export reliant industries such as the agricultural sector. Australian meat continues to be the most valuable agricultural export product, with a trade surplus of $11.848 million over the twelve months to December 2017 Data published by the ABS on international trade in goods and services shows that Australian agricultural exports (excluding fish products and forestry goods) totalled $49.017 billion over the twelve months to December 2017, with 24.2% of this value comprised of meat and meat preparations. Cereals and cereal preparations accounted for almost one fifth of total agricultural exports. Highlighting the importance of meat products and cereals to the agricultural export sector, these two categories made up 43% of the value of all agricultural exports last year followed by textile fibres (12.0%) and vegetables and fruit (10.4%). Australia's Top 10 Agricultural Exports by Value – Year to December'17 Major agriculture export products A$million Share of Total (%) Total Australian Agricutural Exports $49,017 Meat $11,848 24.2% Cereals $9,341 19.1% Textile fibres $5,863 12.0% Vegetables and fruit $5,108 10.4% Misc edible products $3,017 6.2% Beverages $2,966 6.1% Dairy and eggs $2,352 4.8% Oil-seeds and oleaginous fruits $1,889 3.9% Live animals (exc fish) $1,620 3.3% Crude fertilizers $1,575 3.2% New Zealand and China rivalling the European Union for largest agricultural trading partner Based on an aggregation of the balance of payments data issued by the ABS, Australia’s trade surplus on agricultural products was recorded at $7.11 billion over the twelve month to December 2017. The European Union remains as the largest export market for agricultural products, with a trade surplus of $1.437 billion. Amongst the EU nations, the largest trade surplus for agricultural products was in Italy ($320.4 million), Netherlands ($243.1 million) and Belgium ($223.5 million). Outside of the European Union, the agricultural trade surplus with New Zealand, China and USA comprises the vast majority of net agricultural export demand. JAN-10 JAN-11 JAN-12 JAN-13 JAN-14 JAN-15 JAN-16 Exchange Rate ($US to $AU) JAN-17 JAN-18 0.6 Source: RBA, CoreLogic Australian dollar exchange rate with the $US Source: ABS Catalogue Number 5368.0 International Trade in Goods and Services, Australia. Data represents the trade surplus (exports less imports) estimates for agricultural goods in the year to December 2017. Agricultural goods are classified by the WTO definition, which excludes fish and fish products and forestry goods. Note this data is limited to broad economic ABS classifications. It excludes some products such as yarn and wool. Source: ABS Catalogue Number 5368.0 International Trade in Goods and Services, Australia. Data represents the trade surplus (exports less imports) estimates for agricultural goods in the year to Dec 2017. Agricultural goods are classified by the WTO definition, which excludes fish and fish products and forestry goods. Note this data is limited to broad economic ABS classifications, analysing fruits and vegetables, meat, dairy, organic materials, cotton, yarn and non-crude fertilizer. It excludes some products such as wine and tobacco. Australia's Top 10 Trading Partners by Trade Surplus (Exports less Imports) for agricultural products – Year to December '17 Total trade surplus $7,112,400,000 Share of Total (%) European Union $1,436,700,000 20.2% New Zealand $1,177,200,000 16.6% China (excluding SARs and Taiwan) $1,049,200,000 14.8% United States of America $1,015,800,000 14.3% Saudi Arabia $240,500,000 3.4% Viet Nam $203,500,000 2.9% Thailand $163,900,000 2.3% Qatar $146,000,000 2.1% Turkey $140,700,000 2.0% Switzerland $139,600,000 2.0%


Benchmark April18
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