New Zealand's monthly exports topped the $5 billion mark for the first time last month, pushing the trade surplus up to $920 million, a record for a March month.
Statistics New Zealand's international statistics manager Jason Attewell said exports rose $671 million, or 15%, compared with March last year, to $5.1 billion.
Milk powder, butter, and cheese led the rise in exports, up $474 million (45%) compared with March 2013.
“This is the first time monthly exports have exceeded $5 billion, and annual exports have exceeded $50 billion,” Attewell said. “Record dairy exports pushed the values past these thresholds.”
Westpac senior economist Michael Gordon said the March exports figure was likely to mark the peak for the country's exports "at least for now".
"While dairy prices in the GlobalDairyTrade auction system began to fall sharply in March, these prices related to contracts for delivery in April and beyond - so the impact will start to show up in the trade figures over coming months," he said.
Imports rose $483 million (13%) to $4.2 billion, which was influenced by a one-off large capital item. The trade surplus was $920 million. This is the highest recorded surplus for a March month.
Gordon said that in seasonally-adjusted terms, imports rose 4.8%, with the one-off import of a $216m oil-drilling platform accounting for all of the increase.
"Even after excluding this item, there was a solid lift in imports of capital equipment (up 12% on a year ago), consistent with surveyed business intentions for increased investment in capacity," he said.
Back on the exports, apart from the contribution by dairy, the value of exports in the March 2014 month, compared with the March 2013 month, also rose for:
- meat and edible offal – up $77 million (12%), with quantities up 2.4%, due to sheepmeat
- logs, wood, and wood articles – up $48 million (14%), with quantities up 2.7%, due to pine logs
- wine – up $30 million (31%), with quantities up 30%, led by still white wine
- fruit – up $29 million (34%), with quantities up 15%, led by kiwifruit and apples.
Our top three export destinations for the March 2014 month were:
- China – up $264 million, to $1.1 billion, due to whole milk powder
- Australia – down $12 million, to $801 million, due to crude oil
- United States – up $20 million, to $476 million, led by wine.
Other key country movements for the March 2014 month were:
- United Kingdom – up $56 million, to $212 million, led by wine and sheepmeat
- United Arab Emirates – up $50 million, to $118 million, due to whole milk powder.
In terms of March quarter figures, Stats NZ said the seasonally-adjusted value of exported goods rose 2.1% to $13.6 billion. This follows rises in the previous two quarters.
“Meat and fruit led the increase in seasonally adjusted exports,” Attewell said. “This is the second consecutive quarter that both values and quantities for these two commodities have risen.”
Seasonally-adjusted meat values rose 8.7% in the March quarter, and quantities rose 6.8%. Fruit values rose 27%, and quantities rose 20%.
The rise in meat and fruit was offset slightly by a fall in milk powder, butter, and cheese, down 2.4%. The fall in dairy follows 26% increases in both the September and December 2013 quarters.
Despite the small fall this quarter, dairy remains at high levels and is the leading contributor (31%) to total exports.
Imports rose 1.5% to $12.5 billion in the March 2014 quarter. The increase was led by a rise in capital goods.
The seasonally-adjusted trade balance for the March 2014 quarter was a surplus of $1.1 billion. This follows a surplus of $986 million in the December 2013 quarter.
Trade balance, monthly
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7 Comments
Suggestions on how to improve coverage on this issue;
Is there a useful divisor by which these numbers can be normalised? e.g. adjusted against inflation, USD, Gold price, Barrels of oil, # of avarege price NZ houses, # of flat screen tvs?
I know, lazy of me, but if interest.co has any of these data series stored and see them as painting a bigger picture, it might add some value to the re-telling of the story.
NZ dumped more of their disgusting Halal slaughtered sheepmeat into the UK which is currently on sale, unlabelled as Sharia compliant meat, in every supermarket across the country. Because NZ producers refuse to label their product with the Halal mark, the British public are denied their right in making a choice and unwittingly aid Islamic supremacy with profits going to terrorist organisations. It is only a matter of time before we are successful in having NZ Halal meat banned from the UK.
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