AUSTRALIAN commodity prices should be underpinned by good export demand, despite the high dollar.Agribusiness bank Rabobank predicts export demand should help to offset the currency drag from the high Australian dollar.
In its flagship report "Agriculture in Focus", the bank's analysts say the world's increasing focus on food security and safety will support the international competitives of local agriculture.
However, the report says "enhancing the international competitiveness of Australian agribusiness is increasingly challenging."
The report identifies the need to provide food to increasingly wealthy populations, particularly developing Asian economies as a key opportunity for Australia.
It says Australia is well placed to increase the volume of agriculture exports to the Asian region.
"Both (Australia and New Zealand) have ample supply of high quality food and agricultureal products, and comfortably sit on the doorstep of a fast-growing region,'' the report says.
Rabobank analyst Tracey Allen said Australia was seen as a reliable supplier of high quality, safe food, but was not the only country eyeing opporutnities in Asia.
"Plagued by local food safety issues, many trading partners are seeking the assurance of high quality imported food and agricultural products," Ms Allen said.
"And stringent food quality and safety frameworks alrady underpin production systems in Australia."