Exports and imports down despite rebound in trade with China

Exports and imports were both down in February 2021 compared with the previous February, Stats NZ said today.

The value of total goods exported fell $416 million compared with the same period last year. Exports were down to all New Zealand's top trading partners except China, which saw an increase of $369 million from February 2020.

"Last year, we saw trading restrictions with China and higher than usual beef exports to the United States in February. In February 2021, exports to China increased comparatively, whereas exports to the United States and other countries have decreased," international trade manager Alasdair Allen said.

Exports of primary products such as meat, dairy, fish, and logs to China are all up from last February. However, looking at annual totals to February 2021, meat, fish, and log exports to China are still down compared with the previous period, due to reduced exports in early 2020 in the wake of the COVID-19 pandemic.

"The rise in exports to China shows a return to expected levels," Mr Allen said.

Exports down on weaker dairy sales

Total milk powder, butter, and cheese exports fell $217 million (15 percent), but exports of these goods to China rose $62 million. Total milk powder exports fell $137 million, driven by a fall in unit values. Exports of butter and other milk fats fell $96 million, due to both lower unit values and lower quantities exported. Although the Global Dairy Trade price has been increasing since the end of 2020, there is typically a lag between that trend and the unit values in merchandise trade data.

The value of sheep meat exports dropped $26 million. Historically the export of sheep meat peaks in February with a significant proportion exported to the European Union. However, sheep meat exports to the European Union in February 2021 were the lowest since 1999, down $49 million (43 percent), while $122 million more was exported to China compared with February 2020.

The total volume of sheep meat exported rose by 10 percent, however this was offset by a fall in the overall unit value.

"Sheep meat typically fetches a higher price per kilogram in the European Union than in China," Mr Allen said.

Other exports to fall included crude oil, by $52 million (67 percent), compared with the same time last year.

The major rise this month was the export of logs, wood, and wood articles, up $87 million (28 percent), as exports increased to China and Japan.

Imports down as crude oil drops

The value of imports fell by $46 million to $4.3 billion in February 2021.

In February 2021, the value of crude oil imports fell $201 million (80 percent), with the average unit value down 38 percent and volume imported down 67 percent.

Imports of vehicles, parts, and accessories rose $135 million in February 2021, driven by a $122 million rise in motor vehicle imports. The value of motor vehicles imported from China was $30 million, compared with $2.7 million in February 2020. In the year to February 2021, motor vehicle imports from China increased by $56 million to $111 million.

Imports of mechanical machinery and equipment were down $119 million this February, led by a $83 million fall in turbo-jets and turbo-propellers, which aligns with the timing of international travel restrictions. New Zealand imported fewer turbo-jets and turbo-propellers from the United States and the European Union, but this fall was partly offset by a $25 million increase in imports of laptops, mostly from China.