Strong demand for New Zealand beef and wine in the US helped push exports to an all-time high last month. Photo / 123rf
A rise in wine and beef exports to the United States pushed New Zealand’s total exports beyond $7 billion in May, a new record for any month.
The trade balance for May was a surplus of $204 million, Stats NZ said today. The previous record for any month’s total exports was $6.95b, in May 2023.
Although strong exports and a surplus had been forecast for May, a bank economist said the surplus announced today was better than expected.
Total exports to the US were up $255m from a year earlier, reaching $1b.
Beef exports to China were down 45% on a year before, but were up 21% to the US.
In the year to May 31, total exports to the US were $8.8b, and total imports from the US were $7.3b.
“Both exports and imports were a little bit stronger than we expected,” said Darren Gibbs, Westpac senior economist.
He said even in last week’s GDP numbers, good exports were a bright spot.
GDP was up 0.2% in the March 2024 quarter but down 0.3% per capita over those first three months of the year.
“Most of our trading partners are doing quite a bit better than we’re doing,” Gibbs said.
In the year ending May 31, beef exports to the US were worth $1.7b, wine was worth $789m, and sheep meat was worth $609m.
The US was by far the biggest export market for New Zealand wine.
The UK at $448m was the second biggest market for wine exports and Australia was third at $368m.
He said the latest China export numbers reflected a combination of feeble Chinese demand, more Chinese self-sufficiency in some primary products, and strong competition from Australian lamb exporters.
“May months are typically a peak time for exports, being the height of the fruit season, and strong periods for meat, dairy, and vegetable exports,” Stats NZ international trade manager Alasdair Allen said.
Exports by trade partner
Australia: Down $28m or 3.8% compared to a year before, with biggest falls in mechanical machinery and equipment.
China: Down $231m or 12%, with biggest falls in meat and edible offal
EU: Up $14m or 2.8%, with biggest rise in fruit.
Japan: Up $55m or 12%, with biggest rises in meat and aluminium.
USA: Up $255m or 33%, with biggest rises in meat, dairy and cheese.
Imports
Overall imports were up by 0.6.% compared to May 2023.
Petrol and fuel, cereal, sugar and confectionery imports were up.
But vehicles, electronics, machinery and steel were down.
Gibbs said some of those import figures clearly showed sluggish capital expenditure by New Zealand firms.
New Zealand’s biggest imports from the US were mechanical machinery and equipment, at $1.96b, followed by aircraft and parts, at $812m.
Imports by trade partner
Australia: Down $38m or 4.7%, with biggest falls in vehicles and boats.
China: Up $36m or 2.6%, with biggest rises in petrol and related products, mechanical machinery and equipment.
EU: Down $18m or 1.8%, with biggest fall in pharmaceutical products.
South Korea: Up $31m or 5.8%, with biggest rise in petrol and related products.
USA: Up $14m or 1.6%, with biggest rises in food residues, wastes and fodder.