SA hit the hardest as exports plunge 21pc

SOUTH Australia recorded the largest international trade drop of all states last year as the global financial crisis and the strong Australian dollar severely hit key sectors and markets.

State exports fell 21 per cent to $8.3 billion amid major shifts in SA's export markets, with China emerging as the key destination and India growing strongly.

The annual ABS export data reveals that sales to China were responsible for 14.2 per cent of total exports, while shipments to the US fell 51.1 per cent to $1.06 billion.

South Australia's exports to China rose 21.3 per cent to $1.18 billion while sales to India rose 53.5 per cent to $367.6 million.

SA's export drop compared to Queensland (down 18 per cent), Tasmania and Victoria (down 16 per cent), New South Wales (down 10 per cent) and Western Australia (down 7.8 per cent).

Agriculture remains the basis for about half the state's exports. Meat shipments rose 13 per cent to $557 million and fruit and vegetables rose 10.2 per cent to $223 million.

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Exports fell sharply to the Middle East (down $356m), ASEAN (down $257m), the UK (down $204m) and Japan (down $191m).

Values fell sharply for copper (down $240m), wine (down $220m), wheat (down $128m) and lead (down $95m), but rose strongly for metal ores and metal scrap (up $366m), meat (up $65m) and fruit and vegetables (up $21m).

The worst drop in SA was an 85 per cent cut in car exports, from $1.8 billion in 2008 to just $261 million.

A State Government economic brief said the fall in vehicle exports could be mainly attributed to a large drop in demand from the Middle East, while Pontiac in the US cancelled its contract with Holden for the Commodore ute.

The Opposition used the trade data to attack the Government's economic performance. The Government blamed the GFC.

Shadow economic development, industry and trade spokesman Martin Hamilton-Smith said work was needed to make SA more competitive on core industry and employment outside mining and defence and on economic fundamentals.

But Access Economics has forecast a rapid recovery, saying SA's exports will rise strongly to $15.7 billion in 2013-14 as the world economy improves.

The Australia China Business Council's SA president Sean Keenihan said it was working closely with the State Government to identify export markets in China and develop a strategy to make the most of the opportunities.