March 3, 2008

New Zealand dairy exports narrow trade deficits

New Zealand's annual trade deficit in 2007 was significantly lowered by the growing dairy exports buoyed by soaring prices.

Darren Gibbs, chief economist at Deutsche Bank AG in Auckland, said the trade balance is narrower than a year ago due to dairy shipments which rose 24 percent on-year to NZD3.08 billion (US$2.45 billion).

Sales of milk powder, butter and cheese, which account for almost one-fifth of overseas sales, jumped 51 percent to NZD861 million (US$684 million) in January from a year earlier.

Fonterra Cooperative Group Ltd., the world's largest dairy exporter, said December that supplies of milk from farmers had increased, allowing it to take advantage of higher prices in global markets.

New Zealand Darren Gibbs, chief economist at Deutsche Bank AG in Auckland exports milk, butter and cheese to more than 200 countries, including China, the EU and the Middle East.