Record dairy and oil boost exports

The total value of merchandise exports in October 2007 rose more than a quarter compared with October2006, Statistics New Zealand said today.

The main contributors to this increase were milk powder, butterand cheese, and crude oil – both increased to record monthly levels.

Milk powder, butter and cheese exports increased $328 million from October 2006, reaching a record valueof $878 million.

Quantities were also up on October 2006, but to a much lesser extent, indicating higherexport prices. Recent increases in domestic oil production continued to flow through into exports, with petroleum and products increasing $251 million from October 2006.

Merchandise imports were valued at $4.1 billion, the first time in any month that imports have exceeded $4billion.

This represented a 5.7 percent rise from October 2006, which was previously the highest figure onrecord for any month.

In October 2007, the monthly trade balance was a deficit of $690 million, almost half a billion dollars lessthan in October 2006.

However, to put this in context, October 2006 had the highest deficit on record for anOctober month (boosted by large irregular imports), while the average October trade balance over the pastdecade is a deficit of $607 million.

It is typical for the October month to be in deficit – it has been in every year since 1961.