NZ goods exports hit an April record as dairy prices continue to rise

New Zealand's merchandise exports rose to their highest ever for an April month as increased dairy prices boosted the value of the country's largest commodity for a seventh consecutive month.

Exports rose 9.8 percent to $4.75 billion in April, setting a new record for the month and marking the third-highest month ever recorded behind the $5 billion of exports in March 2014 and $4.9 billion in March 2015, according to Statistics New Zealand.

Dairy exports in April jumped 35 percent to $1.11 billion, driven by higher prices. Milk powder values increased 27 percent, or by $117 million, while the quantity fell 11 percent, and the value of milk fat products rose 55 percent, or by $86 million, with the quantity lifting 4.6 percent, Stats NZ said.

The country's top five export commodities all rose from the year earlier month. In order of their ranking, meat exports lifted 1 percent to $630 million, wood exports gained 18 percent to a new record of $406 million, fruit exports advanced 3.4 percent to $444 million and wine exports jumped 20 percent to $136 million.

Meanwhile, goods imports also advanced in April, lifting 4.9 percent to $4.17 billion, setting a new record for an April month. The main movements were in intermediate goods, led by petroleum, and capital goods, led by mobile phones, portable computers and tractors, the statistics agency said.

The export gains led to a goods trade surplus of $578 million in April, the largest monthly trade surplus since March 2015 and the largest April surplus since 2011, Stats NZ said.

The annual trade deficit reduced to $3.48 billion in April from $3.71 billion in March and $3.8 billion in February, which was the highest in almost eight years.

"NZ's trade balance was stronger than expectations over April, with the $578 million surplus higher than the market ($267 million) and our ($50 million) expectations," ASB Bank economists said in a note. "Over the remainder of 2017, we expect the underlying trade balance to improve further, reflecting healthy meat and dairy export prices and lifting agriculture production."

(BusinessDesk)