"While farm sector exports are forecast to rebound following the drought affected earnings of 2006-07, higher export earnings in 2007-08 from mineral resources will be the main contributor to commodity sector performance," said Phillip Glyde, Executive Director of ABARE, when releasing the report today.

The value of Australia's minerals and energy exports is forecast to be around $117 billion in 2007-08, a rise of 8 per cent from an estimated $109 billion in 2006-07. The forecast increase mainly reflects the effects of higher export volumes for mineral and energy commodities.

Earnings from energy exports are forecast to increase by over 6 per cent to nearly $43 billion, supported by an increase in the value of thermal coal and crude oil exports.

The metals and other minerals industries are forecast to contribute nearly $75 billion – an increase of 9 per cent – to Australian exports in 2007-08. Mineral commodities for which export earnings are forecast to increase significantly in 2007-08 include iron ore, gold and nickel.

Farm export earnings are forecast to rise by over 3 per cent to $28.1 billion in 2007-08. The increase in earnings reflects significantly higher export volumes for most crop commodities and increased prices for beef and veal, lamb, wine and dairy products.

Agricultural commodities for which export revenues are forecast to increase significantly in 2007-08 include most grains and oilseeds, wine, lamb and milk powders.

With winter crop production in Australia forecast to more than double in 2007-08 to 37 million tonnes, export earnings from crops and oilseeds are forecast to increase by 6 per cent.

• drought and irrigation in the Murray Darling Basin
• Australia's role in world lupin markets and
• major mineral and energy development projects – April 2007 listing.