New Zealand's merchandise exports rose to their highest monthly level in more than three years in May as the country benefited from rising prices for dairy exports to China.
Exports rose 8.7 per cent to $4.95 billion in May compared with the same month a year earlier and marking the highest monthly level since March 2014, according to Statistics New Zealand. Dairy exports led the rise, with the value lifting 42 per cent, or by $342 million, to $1.16b.
New Zealand's exports of milk powder, butter and cheese have increased for an eighth consecutive month as global dairy prices improve, boding well for improved payouts to farmers which will boost the local economy. Exports to China, New Zealand's largest market, jumped 17 per cent in May to $969m, led by a 76 per cent increase in dairy products.
"Higher world prices for milk powder helped boost export values in recent months," said Stats NZ international statistics senior manager Daria Kwon. "Exports of dairy commodities to China led the increase in values."
Exports of meat and edible offal, the country's second-largest commodity export, rose for a fifth consecutive month, advancing 4.5 per cent to $693m. Lamb exports advanced 8 per cent, while beef exports increased 3.5 per cent. Both rises were price-driven as beef quantities fell 15 per cent and lamb declined 1.2 per cent, Stats NZ said.