Although this was almost twice the expected price, few were surprised. The nation's saleyards are now the scene of a stunning resurgence. Everywhere, it seems, prices are booming. While some regions, such as northern New South Wales and southern Queensland, may be doing it hard because of industry deregulation in the dairy industry compounded by the decline in commercial and community services, there has been a reversal of fortunes elsewhere. For the first time in years, money is flowing into the pockets of farmers.
Analysts expect the upswing for rural produce to continue while the dollar remains weak.
The nation's chief commodities forecaster, the Australian Bureau of Agriculture and Resource Economics, recently forecast a 7.6 per cent rise in farm exports in 2001-02. This follows a 14per cent increase this financial year. Leading the way has been wool. After a tumultuous decade in which the reserve price scheme for wool collapsed and a massive stockpile emerged, the sheep's fleece is again proving profitable. Even prices for the beleaguered middle-micron wools have begun to approach profitable levels.