Australia's commodity export earnings are forecast to be $192 billion in 2008-09, down from ABARE's September forecast of $214b, but importantly agricultural exports are tipped to rise amid the gloomy economic conditions.
ABARE says the cut in the earning forecast is largely a result of the recent global financial crisis.
"While world prices for many commodities have declined markedly over the past few months, a significant depreciation of the Australian dollar, if sustained, is expected to provide some support for commodity export earnings," ABARE executive director, Phillip Glyde, said.
Farm export earnings are forecast to be $29.4 billion in 2008-09, a 7pc increase from $27.5 billion in 2007-08, but marginally lower than the $30 billion forecast in September 2008.
Agricultural commodities for which export earnings are forecast to rise in 2008-09 include wheat, barley, canola, pulses, sorghum, sugar and live cattle.
Crop export earnings are forecast to increase by 18.3pc, to $15.4b in 2008-09.
In contrast, export earnings from livestock and livestock products are forecast to decline in 2008-09 by 3.3pc to around $14b.
The forecast decline in exports of livestock and livestock products mainly reflects the combined effects of lower domestic supply and weak demand for wool.
ABARE says that export demand for wool is sensitive to changes in world economic conditions and income growth due to its status as a "luxury fibre".
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