Falling China dairy demand leads plunge in New Zealand exports

WELLINGTON -- Falling demand for dairy products in China helped drive down New Zealand's goods exports by 9.5 percent year on year in November, the government statistics agency said Tuesday.

Total goods exports last month amount to NZ$4 billion ( $3.09 billion), while imported goods fell by 1.3 percent year on year to NZ$4.2 billion ($3.24 billion), according to Statistics New Zealand.

Dairy exports drove the fall, plunging 27 percent in value, with the quantity down 3.1 percent.

The fall in dairy reflected the record high levels exported, mainly to China, in November 2013.

"The fall in export values reflects a return from the high values late last year, led by China," international statistics manager Jason Attewell said.

"The trend for exports to China is 42 percent lower than the series peak in December 2013, and is now at similar levels to 2012. "

Milk powder was the main driver, with total exports down by NZ$405 million ($313.05 million), or 34 percent, and quantity down 2.7 percent, while milk powder exports to China plunged by NZ$497 million ($384.17 million), or 70 percent.

Total exports to China were down by 44 percent to NZ$686 million ($530.26 million), the third consecutive monthly fall in exports to China compared with the same month in 2013.

New Zealand had a trade deficit of NZ$213 million ($164. 69 million), or 5.3 percent of exports, in November, the smallest November deficit since 2010.