The tough month saw all three AAG Agri-Index subsectors fall:

• Diversified, down 8pc.

• Producer, down 6pc.

• Manufacturer, down 4pc.

"The 4pc fall in the AAG Agri Index during October is not significant enough to create any major concerns, AAG director Tim Lee has said.

"Despite the October result, agribusiness has added an impressive 9pc for the financial year to date as shown by the improvement in the AAG Agri-Index.

"October produced some outstanding agribusiness winners such as Australian Renewable Fuels (up 75pc), Prince Hill Wines (up 67pc) CO2 Group (up 28pc), Dromana Estate (up 20pc) and Ark Fund (up 13pc)," he said.

"The AAG Agri-Index aims to improve confidence in agribusiness, by providing broad based, high quality data on listed agribusinesses.

"Australian Renewable Fuels was the highest performing equity on the AAG Agri-Index, thanks to the contract negotiation with Westfarmers Premier Coal in regards to the programmed supply of biodiesel for use in the coal mine."

According to the AAG Agri-Index, CO2 Group rose 28pc, thanks to the $4.4 million carbon deal with ACTEW to provide them with accredited forest carbon sink offset.

"The recent trend towards affirmative environmental action has opened the gate for certain agribusinesses to develop a leg up in the market," Mr Lee said.

(ACTEW Corporation Limited is a government owned company with assets and investments in water, wastewater, electricity, gas and telecommunications totalling $1.4b.

ACTEW owns the water and wastewater assets and business in the ACT, is a 50pc owner, with Singapore Power International and AGL Energy Limited, of ActewAGL and holds an 18pc investment in TransACT Communications Pty Limited.)

Amid the October decline in the AAG Agri-Index were Clean Seas Tuna (down 55pc), Redisland Australia (down 33pc), Elders (down 27pc) and Willmott Forests (down 24pc).

"The AAG Agri Index is expected to continue a firm recovery over FY 09-10."

The AAG Agri-Index is an end-of-day market capitalisation weighted index that tracks 58 listed agri stocks.

The composition of the index covers horticulture, forestry, fertiliser and manufacturing to provide a strong representation of performance within th agribusiness sector.

* Details: www.ausagrigroup.com.au/research_ agriindex.php