Record trade production boosts June exports

A record dairy production season helped boost seasonably adjusted exports 9.4 per cent or $760 million in the June quarter, compared with the previous three months, figures released today by Statistics New Zealand show.

Exports of milk powder, butter and cheese were up 25.6 per cent, accounting for nearly half the overall increase.

The seasonally adjusted trade balance for the June quarter was a deficit of 13.9 per cent of exports, compared with deficits ranging from 20.4 per cent to 25.4 per cent of exports for the previous four quarters, SNZ said.

The monthly trade balance for June 2006 was a deficit of $214m, 7.2 per cent of exports, compared with an average June deficit of $89.7 million during the past decade.

During the past 20 years, the June month had recorded a deficit on six occasions, all within the past eight years.

Today's figures contributed to a fall in the annual trade deficit in the year to June from an updated $6.93 billion deficit in the May year to a deficit of $6.63 billion.

Imports seasonally adjusted rose 1.2 per cent, $119m, in the June quarter compared to the three months to March.

Crude oil imports, imported in large, irregular shipments, were down 19 per cent, while petrol and avgas, also imported in irregular shipments, rose 42.8 per cent.

For the second consecutive quarter, capital goods was the broad economic category with the largest decrease (9.7 per cent).

Transport equipment, which excludes passenger cars, dropped 23.6 per cent following a 17.8 per cent decrease last quarter, with aircraft being the main contributor to the decrease for both periods.

Export values for meat and edible offal, after a decrease in the March quarter, rose 18.3 per cent in the three months to June, returning them to a level similar to that in the December 2005 quarter, SNZ said.

Actual values for exports of merchandise goods for the June month were up 16.7 per cent, $426m, on June 2005 at $2.98 billion.

Milk powder, butter and cheese were up $95m, with meat and edible offal up $74m.

The Reserve Bank's trade weighted index showed the NZ dollar falling 8.1 per cent in the June quarter, with depreciating exchange rates generally having an upward influence on NZ's export values.

Imports of merchandise goods also recorded the highest-ever actual value for a June month, up 4.2 per cent, $127m, on June 2005 to reach $3.19 billion. Petroleum and products up $37m was the largest contributor to the increase.

- NZPA