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Home / Business / Companies / Agribusiness

Dairy exports shore up June trade surplus

BusinessDesk
24 Jul, 2020 12:47 AM2 mins to read

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Leading the rise were shipments of milk powder, butter, and cheese, up 8 per cent from. Photo / Getty Images

Leading the rise were shipments of milk powder, butter, and cheese, up 8 per cent from. Photo / Getty Images

June marked another trade surplus as exports – particularly dairy – continue to hold up well despite the global pandemic.

The surplus came in at $426 million as exports lifted 2.2 per cent to $5.1 billion and imports inched up 0.2 per cent to $4.6 billion.

Leading the rise were shipments of milk powder, butter, and cheese at $1.2 billion, up 8 per cent from the same month last year.

Log exports also fared better, lifting 3.2 per cent to $454 million. Log exports were hammered when harvesting in New Zealand stopped as a non-essential service during the lockdown.

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Imports, however, continue to stumble and would have fallen more than 8 per cent to $4.2 billion if it wasn't for new naval vessel.

"The arrival of the navy's newest and biggest ship has buoyed import totals for June," international statistics manager Darren Allan said.

If that ship - the tanker and support vessel Aotearoa - is stripped out, the trade surplus would have been $821 million in June.

Cars, trucks

The biggest import decline in June was of vehicles and parts. Vehicle imports were down sharply in April and May due to the covid lockdown, and were still $256 million lower last month than in June 2019.

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"The latest vehicle registration numbers indicate sales of vehicles may be recovering," Allan said. "Given the continued low imports of vehicles, it seems the car sales are of existing stock."

Imports of mechanical machinery and equipment, such as turbo-jet and turbo-propeller parts, were also down.

"With ongoing travel restrictions and international arrivals at a 61-year low, there's less need for imports of aircraft parts," Allan said.

Imports from China continued to hold up, lifting 10 per cent in June versus the same month a year ago.

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The leading rises were electrical machinery and equipment, such as mobile phones, articles of plastic, such as disposable aprons, and textiles, such as face masks.

The annual trade deficit meanwhile was $1.2 million in June, the smallest since December 2014.

Exports during the past year lifted 1.4 per cent to $60.2 billion while imports fell 4.6 per cent to $61.4 billion.

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