AUSTRALIAN EXPORT INDEX DECLINES

Press, Volume CVIII, Issue 31580, 18 January 1968, Page 12

AUSTRALIAN EXPORT INDEX DECLINES

(N.Z. Press Association-Copyright) CANBERRA, January 17. Australia’s export price index for November shows a continuing decline in prices received for some major export commodities. The index was released yesterday by the Commonwealth Statistician.

For the five months to November, 1967, f.o.b. prices for wool exports were down by 13.8 per cent compared with the same period last year. Prices for hides and tallow fell by 28.6 per cent, dried and canned fruits 3.1 per cent, coal 1.6 per cent and cereals 1.2 per cent. Signs of weakness are just appearing in the internationai wheat market and prices could fall further in 1968 because stocks are rising overseas and competion for sales is becoming keener.

The only significant gain between the two periods was the 7.4 per cent rise in meat prices which was the result of continuing high demand for Australian beef in the United States. There was a marginal improvement in dairy produce prices probably because of a strengthening in world demand for cheese as returns for butter on the British market, the only significant outlet for Australia, have held steady at 300 s a cwt since July, 1966. However, since the sterling devaluation Australia is in effect obtaining 14.3 per cent less for butter sold in Britain. This will show up in the index in future months. In spite of rising production costs, Australian primary producers are now receiving less for their exports than in any year since 1961-62.