November 5th, 2024

New Zealand's trade dynamics shift with significant export rise in February 2024

In a remarkable uplift, New Zealand's goods exports escalated by $823 million, or 16%, to reach $5.9 billion in February 2024, in comparison to the same month the previous year.

In a remarkable uplift, New Zealand's goods exports escalated by $823 million, or 16%, to reach $5.9 billion in February 2024, in comparison to the same month the previous year.
In a remarkable uplift, New Zealand's goods exports escalated by $823 million, or 16%, to reach $5.9 billion in February 2024, in comparison to the same month the previous year.

Stats NZ's latest report unveils a noteworthy surge in exports and a moderate increase in imports for February 2024, spotlighting the dairy sector's substantial contribution to the nation's trade performance, amidst a minor trade deficit, according to data released by Stats NZ last week.

Exports ascend: In a remarkable uplift, New Zealand's goods exports escalated by $823 million, or 16%, to reach $5.9 billion in February 2024, in comparison to the same month the previous year. Dairy products, led by milk powder, butter, and cheese, were at the forefront of this growth, advancing by $389 million or 26% to $1.9 billion. Notably, milk powder alone saw a valuation increase of 43%, driven by a significant rise in quantity, despite a 7.6% decline in unit price.

  • Dairy sector nuances: While key dairy segments like milk powder and butter experienced growth, other dairy derivatives, including infant formula and casein, faced declines, with infant formula's value dropping by 22%. Conversely, exports of whey and milk constituents, though minor, surged by 52%, primarily to the United States.

Principal trading allies: The United States stood out with a 52% increment in exports from New Zealand, propelled by meat, dairy products, and mechanical machinery. Exports to China also grew by 10%, with dairy and wood products marking the most significant rises, albeit certain sectors like milk preparations and pharmaceuticals recorded decreases.

  • Imports detail: Imports into New Zealand experienced a 3.3% rise to $6.1 billion in February 2024, compared to February 2023. This increase was mainly attributed to a 24% rise in petroleum and products, amounting to $866 million.

Interactions with key partners: Import trends displayed variability among New Zealand's main import sources. While imports from China and Australia saw an uplift, those from the European Union and the United States depicted declines, underscoring the varied nature of New Zealand's import relationships.

Trade balance context: Despite the export surge, New Zealand posted a trade deficit of $218 million for February 2024. Looking at the year ending in February 2024, the trade deficit shrank to $12.0 billion from $15.8 billion the previous year, signalling an improving trade scenario.