Amid uncertainty about the economic outlook for some major OECD countries, Australia forecasts agricultural export earnings to rise in 2011-12.

The agricultural commodities-September quarter 2011 report, released by ABARES Tuesday, forecasts the value of agricultural exports to reach $34.6 billion in 2011-12.

“This is a record for Australian export earnings in nominal terms and the second highest in real terms since 2002-03,” said ABARES acting Deputy Executive Director Terry Sheales.

This forecast of agricultural export earnings in 2011-12 represents an increase of 6.5 per cent from an estimated $32.5 billion in 2010-11 and represents an upward revision from the forecast released in June by ABARES.

“While there is considerable uncertainty associated with the economic outlook for some major OECD countries, robust economic growth in the Asian region is expected to provide support to demand for Australian agricultural exports,” Sheales said.

The forecast increase in agricultural export earnings is supported by expected higher farm production and a favourable outlook for agricultural prices on world markets, which will more than offset the impact on revenues of a strong Australian exchange rate, especially against the US dollar.

Agricultural commodities for which export earnings are forecast to rise in 2011-12 include wheat, wool, rice, canola, raw cotton and sheep meat.

Under the assumption of favourable seasonal conditions, crop production is forecast to rise by 3.8 per cent in 2011-12, following a significant increase of 11.5 per cent in 2010-11.

Production of livestock and livestock products is forecast to increase by around 1 per cent in 2011-12, reflecting higher lamb and sheep turn-off rates and increased wool and milk production.

Agricultural commodities–September quarter 2011 also contains forecasts of export earnings from Australia’s fisheries and forestry sectors.

Earnings for fisheries exports are forecast to be around $1.4 billion in 2011-12, rising from $1.2 billion in 2010-11 and export earnings from forest products are forecast to increase by 5.9 per cent to around $2.6 billion in 2011-12.

In total, the value of Australian agricultural, fisheries and forestry exports is forecast to reach $38.6 billion in 2011-12, an increase of 6.6 per cent from $36.2 billion in 2010-11.