Lamb prices hit record levels

Families would have found their lamb dinners a bit more expensive in the second quarter. Photo / Getty Images

New Zealand's terms of trade lifted in the second quarter as meat and dairy prices saw strong rises, with lamb prices hitting record levels.

The terms of trade, which measures the purchasing power of New Zealand's exports relative to imports, rose 1.6 percent in the three months to June 30 after lifting 1.0 in the three months to March, Stats NZ said.

Economists had been expecting a rise of 1.0 per cent, according to Bloomberg.

Lamb export prices reached their highest level since the series began in 1982 and "both lamb and beef prices rose this quarter, up 4.7 per cent and 5.3 per cent, respectively, on the back of strong overseas demand," overseas trade statistics manager Darren Allan said.

Seasonally adjusted meat volumes fell 3.1 per cent, with lamb volumes down 8.7 per cent versus the prior quarter.

Dairy product prices rose 11 per cent in the June quarter, with prices for milk powder up 11 per cent, butter up 13 per cent, and cheese up 3.1 per cent.

Dairy volumes fell 9.3 per cent following an 18 per cent rise in the March quarter, also seasonally adjusted.

Prices for forestry products were the only major export commodity to fall on the quarter, down 1.7 per cent. Seasonally adjusted volumes for forestry products also fell, down 1.9 per cent on the quarter.

Total export volumes fell 2.6 percent but prices lifted 3.4 percent.

The total value of exported goods was up 0.2 per cent to $14.3 billion.

Import volumes were down 3.5 per cent. Prices, however, lifted 1.8 per cent. The total value of imported goods was down 0.9 per cent at $15.3 billion.

Higher fuel prices drove the overall lift in import prices, Stats NZ said.

Fuel import prices rose 13 per cent in the June quarter, reflecting higher prices for crude oil, up 17 per cent, petrol, up 12 per cent, and diesel, up 3.6 per cent.

- BusinessDesk