Opening the Australian Bureau of Agricultural and Resource Economics (ABARE) Outlook '99 conference, Vaile said gene technology promised enormous gains for agriculture and Australia's rural environment.

"Gene technology is already delivering higher yields from both crops and animals, and delivering farming systems that require fewer chemicals the world over," he said.

Gene technology is just starting to be used in the Australian agriculture industry, particularly in the growing of pest-resistant cotton.

The rise of gene technology is spurring critics, particularly from consumer groups, who attack the technology primarily on the ground that it removes consumer control over product content and leads to potentially misleading labelling.

Vaile also voiced confidence in Asian food and fibre export markets whenthe present economic crisis passes. "Despite the recent economic difficulties, the potential of Asian markets for our food and fibre products is very real," he said.

In 1997/98 Australia's total rural exports generated about A$24 billion, of which 60 per cent was earned from exports to Asia.

"Although the recent difficulties are far from over, these markets will offer vast and growing opportunities for Australian exporters, once the conditions have improved," Vaile said.

Forecasts to be presented at the ABARE conference, showed a marked downturn in Australian commodity exports because of the Asian crisis. This also showed a need for concentration on continued reform in agriculture, Vaile said.

The Australian government would work closely with the industry to address continuing trade barriers, and maximise Australian rural commercial opportunities in world trade talks scheduled to begin later this year, he said.

"Australian exports continue to face trade barriers overseas. However, the government isendeavouring to overcome these," he said.

"We will work in the World Trade Organisation (WTO) and with individual countries overseas to expand export opportunities for our rural industries and to iron out continuing problems in world trade," he added. In the past five months, Australia had achieved successes in obtaining access for exports into new markets.