New high for trade surplus

This shows the current balance of trade, or value of exports over imports. It has just hit a new high.

Stats NZ reports:

Goods exports rose $227 million in August 2014 compared with August 2013, to $3.5 billion, Statistics New Zealand said today.

Live animals led the rise in exports, due to live cattle. Milk powder, butter, and cheese exports also contributed to the increase, led by higher quantities. The 16-percent rise in milk powder, butter, and cheese was led by milk fat and cheese.

“Cattle, milk fat, and cheese contributed to the rise in exports,” international statistics manager Jason Attewell said. “It is the first time in three years that a rise in dairy was not led by milk powder.”

The value of imported goods fell $536 million to $4.0 billion, compared with August 2013. The fall was influenced by the one-off import of a drilling platform in August last year. The monthly trade balance for August was a deficit of $472 million (13 percent of exports) – the smallest for an August month since 2010.

Seasonally adjusted exports rose 15 percent, led by increases in crude oil, dairy, and meat exports. Seasonally adjusted imports fell 2.8 percent.

There is going to be volatility withe the diary price, but overall our trade position is still strong. If we want to make it stronger we need to keep pushing for free trade agreements.