August 27, 2012

 

 

Despite a 12-month deficit, New Zealand achieved a trade surplus in July due to a surge in China's demand for milk powder.

 

The value of New Zealand exports rose by NZD296 million (US$240 million), or 8%, last month compared with July 2011, according to Statistics New Zealand.

 

"The increase in milk powder drove the increase in exports," industry and labour statistics manager Neil Kelly said in a statement.

 

"The trade surplus has fallen compared with July 2011, as the increase in imports was stronger than the increase in exports."

 

Imports rose by NZD383 million (US$310 million), or 11%, resulting in a small surplus of NZD15 million (US$12 million), or 0.4% of exports, compared with a surplus of NZD103 million (US$83 million), or 2.8% of exports, in July 2011.

 

Milk powder, butter and cheese had the largest increase of all commodity groups, up NZD264 million (US$214 million), or 33%, led by whole milk powder exports, which rose by NZD274 million (US$222 million), or 93%.

 

China accounted for more than a third-- NZD97 million (US$79 million) -- of the increase in exports of whole milk powder, which contributed to a 39% increase (NZD149 million (US$121 million)) in New Zealand exports to China, said a commentary from Statistics New Zealand.

 

Venezuela and Algeria also accounted for large increases in New Zealand exports, also driven by whole milk powder.

 

Exports to New Zealand's largest market, Australia, fell by NZD66 million (US$53 million), or 7.4%, due to a decrease in crude oil and refrigeration equipment for storage and display.

 

Exports to India almost halved, falling by NZD54 million (US$44 million), or 48%, over a range of commodities, and they dropped by almost a third to Indonesia, falling by NZD24 million (US$19 million), or 32%, led by frozen beef.

 

For the year ended July, there was an annual trade deficit of NZD853 million (US$691 million), or 1.8% of exports.

 

Compared with June, July exports were down 0.4% and imports fell by 1.5%, with most major export commodities falling, offset by milk powder, butter and cheese, which rose 20%.