Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ record smallest October trade deficit since mid-1990s

NZ record smallest October trade deficit since mid-1990s, on record exports for month

Nov. 27 (BusinessDesk) – New Zealand posted its smallest October trade deficit since the mid-1990s as milk powder, butter and cheese shipments drove exports to a record for the month.

The trade deficit narrowed to $168 million last month, from $216 million in September, narrowing the annual trade gap to $1 billion from $1.55 billion, according to Statistics New Zealand. The trade figures compared to a forecast deficit of $350 million in the month and $1.14 billion in the year in a Reuters survey.

Exports rose by 23 percent, or $783 million, to $4.2 billion in October compared to the same month last year, of which $690 million reflected increased exports of milk powder, butter and cheese, which jumped by 85 percent to $1.5 billion.

In September, Fonterra Cooperative Group raised its forecast 2014 payout to a record $8.62, made up of a farmgate milk price of $8.30 and an unchanged dividend of 32 cents, citing continuing global demand for whole milk powder. The value of milk powder, butter and cheese climbed 4.6 percent in the 12 months through October to $12.2 million, making up 26 percent of total exports of $46.8 billion in the period.

China was the biggest destination for New Zealand’s exports last month, taking $1.1 billion worth, up 133 percent from a year earlier. Shipments to Australia fell 13 percent to $794 million. On an annual basis, Australia is still the largest market, taking $9.18 billion of exports, while China took $8.87 billion and the US took $4.1 billion.

“We expect to see this trend maintained over the coming months, as the strong rebound in agricultural (and in particular dairy) production since last summer's drought, coupled with strong commodity prices, is reflected in higher export revenues” said Anne Boniface, senior economist at Westpac Banking Corp.

Imports rose 5.7 percent to$4.4 billion, led by vehicles, parts and accessories.

China was the largest source of imports, rising 9.2 percent to $797 million in the month and 4.4 percent to $8.1 billion in the year. Imports from Australia fell 1.9 percent to $613 million and fell 7.8 percent to $6.6 billion in the year. Imports from the US rose 11 percent to $408 million in October from a year earlier and fell 5 percent to $4.4 billion in the year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news