Strong start to dairy export season

Dairy led the rise in goods exports in November 2019 as milk powder exports reached $1.1 billion, Stats NZ said today.

This is the highest value of milk powder exports for a November month since dairy exports peaked in 2013.

The value of dairy exports (milk powder, butter, and cheese) increased $348 million in November 2019. Dairy was the main contributor to total goods exports reaching $5.2 billion, up $371 million from the same month last year.

Milk powder exports had the largest increase within the dairy category, up $252 million from the same month last year.

“Typically, exports of milk powder go over $1.0 billion in December months, the peak of the dairy export season,” international statistics manager Darren Allan said.

“Since the start of the 2019/20 season we’ve seen higher quantities and prices for milk powder exports compared with the previous season. The high this month was mainly driven by price, but quantities were also up.”

Month 2016/17 2017/18 2018/19 2019/20
August 190101748 184541457 200357539 227501739
September 286872667 344611544 311331733 440782803
October 530071592 660221499 606161288 786731425
November 689544767 768789311 858220547 1109732675
December 856782189 1076899688 1099184143 0
January 706009539 759915789 856881709 0
February 556700612 553951902 678916430 0
March 583338687 557429925 755573189 0
April 553862366 559585837 691219530 0
May 597597430 491940110 631050167 0

Most milk powder exports were to China, up $260 million from November 2018, to reach $711 million this month.

Month Milk powder exports to China Total milk powder exports (excluding China)
Nov-05 32905886 235472656
Nov-06 25134008 325377641
Nov-07 62860052 461627122
Nov-08 92188565 425858293
Nov-09 91784170 317418363
Nov-10 138689274 414056494
Nov-11 127329761 590189390
Nov-12 232130182 405828781
Nov-13 705915096 476064913
Nov-14 208842674 566957098
Nov-15 260992831 423067029
Nov-16 223727691 465817076
Nov-17 291809391 476979920
Nov-18 450442960 407777587
Nov-19 710533475 399199200

Butter exports to China also rose $44 million to reach $70 million in the November 2019 month.

This rise in dairy exports to China contributed to a record monthly high of $1.9 billion worth of total goods exports to China in the November 2019 month.

“While monthly exports to China were up 36 percent in November, exports to eight of New Zealand’s top 10 markets fell, including key export markets of Australia, USA, Japan, and South Korea.”

Country November 2018 November 2019
People’s Republic of China 1385043018 1878258037
Australia 787197657 745920855
United States of America 493125538 461928974
EU 312027857 312639606
Japan 273899697 265663049
Republic of Korea 148241917 123006865
Hong Kong 98079575 73811086
Taiwan 84370109 78415680
Singapore 108653861 85684236
Malaysia 78213006 73995429

Other significant contributors to the goods exports rise included beef and lamb, up $52 million and $31 million, respectively.

These rises were partly offset by a fall in untreated logs, down $58 million. This is the fifth consecutive month untreated logs export values have fallen compared with the same time last year, largely due to falls in demand from China.

Green kiwifruit also fell $21 million as the 2019 kiwifruit season comes to an end.

Imports

Monthly goods imports rose $119 million from the same month last year to reach $6.0 billion in November 2019.

Trade deficit for November

The monthly trade balance was a deficit of $753 million.

/Stats NZ Public Release. View in full here.