Dairy prices drive increase in export values

The total value of merchandise exports in February 2008 rose almost one-third compared with February2007, Statistics New Zealand said today.

February 2008 was the sixth consecutive month with a largeincrease led by dairy products (milk powder, butter and cheese, and casein and caseinates) and petroleumand products.

Milk powder, butter and cheese rose 72.1 percent in value but only 1.1 percent in quantity compared withFebruary 2007.

As quantities are comparatively flat, this indicates that price increases accounted for nearlyall of the increase in value.

Price increases for casein and caseinates had a lesser effect on value than theydid for milk powder, butter and cheese, but they were still significant, with quantity up 10.3 percent andvalue up 42.2 percent.

Since August 2007, the increase in domestic oil production and associated exports have contributed tosubstantial rises compared with the same month of the previous year.

The February 2008 month isno exception, with crude oil up $153 million.

Of the last five months, crude oil exports for the latest monthare the smallest in value ($172 million).

Merchandise imports in February 2008 were valued at $3.5 billion, representing a 16.1 percentincrease from February 2007.

The increase was led by a rise in petroleum and products, with crude oil thelargest contributor within this group.

The next largest increase came from a rise in vehicles, parts andaccessories, with new diesel motor cars (engine size exceeding 2500cc) the largest contributor.

In February 2008, the monthly trade balance was a surplus of $258 million, this follows three successiveFebruary deficits, but before 2005 it was usual for February to show a surplus.

The rolling annualised tradebalance has been in deficit since August 2002.

The $4.4 billion deficit recorded this month is the smallestsince April 2005.