Aussie farm trade shocked

Aussie farm trade shocked

SYDNEY (Reuters): Australia's A$20 billion a year farm export sector is braced for a worsening impact from the Asian crisis.

Ian Donges, newly-elected president of Australia's peak farm body the National Farmers' Federation (NFF), said he was concerned especially about Indonesia, Australia's second-largest market for wheat, one of its largest markets for cotton and a very large buyer of other farm exports.

"I think there's worse to come in the next six to 12 months," Donges told Reuters Television.

Asked whether Indonesia was actually paying Australia for wheat exports, he pointed out that Indonesian payments had "so far" been covered by the Australian government's Export Finance and Insurance Corp (EFIC) insurance.

Indonesia takes about four percent of Australia's total exports, of which 60 percent are destined for the Asian region.