37 pages
Published: 24 Jul 2014
Author(s): Kearns, Brian, Marks, Nicki, Baud, Stephen
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This report has gathered qualitative information from exporters of Australian agrifood and importers in Australia’s key markets to determine what impact the high Australian dollar is having on trade and how some businesses are learning to manage and adjust. It establishes that there has not been a comparable period of a high exchange rate since the float of the Australian dollar however, there were a number of lessons learnt from the few periods of elevated exchange rate. Some industries and companies are also more affected by the high dollar than others, and there are some differences in the impact of the high dollar between export markets. So sharing these lessons will be most important for vulnerable industries and will assist in making necessary changes.
The report also describes the impact of changes to industries under differing exchange rate scenarios and the responses industries are likely to take. This can be used in the formulation of policy by government and industry for initiatives that help maintain our export markets through such measures as trade promotion, product development and targeting the most appropriate markets. The longer the Australian dollar remains strong, the more relevant this information will be to ensuring Australian agrifood industries remain strong export performers.
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