June 10, 2010
New Zealand export prices increase amid demand for dairy products
New Zealand export prices rose by the most in almost 10 years in the three months through March as the currency fell and demand for dairy products surged, ensuring the nation's terms of trade index increased for a second straight quarter.
Export prices soared 10.3% in the three months to March 31 from the fourth quarter, the first gain in five quarters and the biggest rise since 2000, Statistics New Zealand said. Import prices rose 4.2%. The terms of trade index jumped 5.9%.
The terms of trade index, which measures the amount of imports New Zealand can buy from a fixed quantity of exports, is recovering after slumping to the lowest level in more than five years in 2009 as the global recession curbed the incomes of farmers and exporters. New Zealand's currency fell 0.3% in the first quarter against a basket of currencies of the nation's trading partners, the statistics agency said.
Export prices were led higher by a record 32% jump in dairy as world commodity prices increased, the report showed. Butter prices rose 48% from the fourth quarter. Meat, aluminium and log prices also increased.
