NZ trade deficit widens to a record as meat exports fall
The country's trade deficit hit $1.44 billion last month.
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New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years.
The country's trade deficit expanded to $1.44 billion in September, from $1.14 billion a year earlier, Statistics New Zealand figures show.
Exports fell 5.7% to $3.47 billion, led by a 35% crop in meat and edible offal exports to $281 million, the lowest monthly reading since August 2013.
That pushed meat exports down to third place in the monthly rankings, behind wood, although it remains in second place on an annual basis.
Imports advanced 1.8% to $4.9 billion, boosted by the importation of aircraft in the month. Excluding aircraft imports from the total, imports fell 0.8% to $4.7 billion.
The meat export market is retreating from highs reached last year, when beef exports hit a record as a shortage in the US pushed up prices. In the latest monthly data, the value of beef exports fell 35% from a year earlier amid increased beef supply in the US, while lamb exports sank 39% amid subdued demand in the UK.
A higher New Zealand dollar is also weighing on exports, making local goods more expensive in international markets, analysts say.
Exports of milk powder, butter and cheese slid 1.2% to $616 million, while the quantity rose 16%.
Milk powder fell 1.9 % in value while the quantity rose 19%, reflecting price declines. Milk fats, including butter, slipped 3.4% in value and 4.7% in quantity while cheese gained 21% in value and 77% in quantity.
Fruit, the fourth-largest commodity export, increased 44% to $228 million while the quantity rose 56 %. Kiwifruit led the rise, with the value up 46% and the volume up 58%.
Wood exports rose 17% to $347 million while the quantity increased 19%.
On an annual basis, the country's trade deficit was $3.4 billion, compared with an annual deficit of $3.17 billion in September last year.
Annual exports totalled $48.58 billion in the year through September, while imports totalled $51.99 billion, according to the data.
(BusinessDesk)
Tina Morrison
Thu, 27 Oct 2016
Thu, 27 Oct 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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NZ trade deficit widens to a record as meat exports fall
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