New Zealand posted a smaller-than-expected surplus in April, reflecting a drop in the value of exports of milk powder, butter and cheese.
The trade surplus was $355 million last month, according to Statistics New Zealand. Economists had expected a surplus of $500 million, according a Reuters survey. For the 12 months ended April, there was a trade deficit of $541 million.
A decline in the value of dairy exports comes as Fonterra Cooperative Group, the world's biggest exporter, cut its forecast 2012 milk price and flagged lower payments in 2013.
Prices in Fonterra's GlobalDairyTrade auction have dropped 41 per cent during the past 12 months, reflecting a slide in commodity prices as traders factor in weaker demand from China and European uncertainty, which has helped drive up the US dollar.
"Most commodities for exports fell this month, with primary products driving the decrease, although it should be noted that April 2011 had the highest exports value for any month on record so far," Neil Kelly, industry and labour statistics manager, said in a statement.