Dairy drives record exports in March

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New Zealand recorded record exports by value in March, driven by shipments of dairy products to China and contributing to a larger-than-expected monthly trade surplus.

Exports rose 11 per cent to $4.5 billion last month, surpassing the previous record of $4.2 billion set in May last year, according to Statistics New Zealand. Imports rose 17 per cent to $4.1 billion, resulting in a monthly trade surplus of $464 million.

A surplus of $300 million was forecast in a Reuters survey.

New Zealand is enjoying what Reserve Bank Governor Alan Bollard has called a "structural shift" in global demand for commodities, driven by a burgeoning middle class in emerging economies such as China.

Exports to China, the second-largest market for New Zealand after Australia, jumped 40 per cent in the latest month, with the value of dairy products rising $125 million.

The annual trade surplus was $631 million, compared to a Reuters forecast of $500 million, marking the first surplus in a March year since 2002.

Imports were boosted by aircraft, which are large enough to push the monthly numbers around.

They increased by $270 million in March, the biggest increase. Imports of petroleum products climbed 32 per cent.

Excluding aircraft imports, the monthly trade surplus would have been $682 million, Statistics New Zealand said.