Dairy and meat drive large fall in exports

The value of total goods exports fell 10 percent in January 2021 from January 2020, to $4.2 billion, led by falls in dairy and meat, Stats NZ said today.

“The fall in exports of $486 million was the largest year-on-year fall in exports since March of 2016,” international trade manager Alasdair Allen said.

Months$
Jan-032039349410
Jan-042032796295
Jan-052252426665
Jan-062199098566
Jan-072483864806
Jan-083083488518
Jan-093172202817
Jan-103154448602
Jan-113306376396
Jan-123726830894
Jan-133347037981
Jan-144068202741
Jan-153680849221
Jan-163894764530
Jan-173935549305
Jan-184275245564
Jan-194344482506
Jan-204677676997
Jan-214191704365

The fall in exports was led by a drop in dairy products with milk powder, down $97 million, butter, down $62 million, and whey, down $31 million from January 2020.

“The drop in dairy exports was partly due to a fall in quantity for whey products to one of New Zealand’s top export trading markets, the United States. Exports of dairy were the largest fall for the US in January 2021, specifically exports of whey,” Mr Allen said.

“This is the fifth consecutive month this season where monthly dairy exports were lower than the corresponding month a year ago.

“China was the only one of our top trading partners to see a rise in January.”

Following a $194 million fall in milk powder, butter, and cheese to China last month, there was an $89 million rise in January 2021. This was led by a $57 million increase in milk powder exports compared with the previous January.

Months$
Jan-181357668463
Feb-181082810009
Mar-181183142138
Apr-181165012155
May-181121360159
Jun-181108068209
Jul-181512374297
Aug-18515548323
Sep-18720977408
Oct-181228756522
Nov-181469037726
Dec-181782861140
Jan-191486706813
Feb-191297188477
Mar-191386686826
Apr-191278366021
May-191272552413
Jun-191136179832
Jul-191252858587
Aug-19538699896
Sep-19872751972
Oct-191447483396
Nov-191802334470
Dec-191983218295
Jan-201596471335
Feb-201477400259
Mar-201492516196
Apr-201564530961
May-201330261761
Jun-201226149726
Jul-201115582318
Aug-20593878162
Sep-20775628665
Oct-201249331468
Nov-201796437419
Dec-201607200877
Jan-211424706903

New Zealand’s second-largest export commodity group, meat, also had a large drop, down $141 million (18 percent) in January 2021.

Exporters of New Zealand meat sold less for a lower price.

Sheep meat exports fell $69 million (17 percent) while beef exports fell $69 million (20 percent), with the falls largely price driven. There was also a drop in quantities for both exports.

China and the US had some of the largest falls in meat exports, both seeing drops in beef export prices.

“The $64 million fall in preparations of milk, cereals, flour, and starch (largely infant formula) was another notable contributor to the major fall in export commodities,” Mr. Allen said.

Monthly trade balance

The monthly trade balance in January 2021 was a deficit of $626 million. The previous four January months all had deficits.

/Stats NZ Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.