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Friday, December 10, 2004
Scoop Media
New Zealand: Export Volumes Fall 8.7 Percent

Seasonally adjusted merchandise export volumes fell 8.7 percent in the September 2004 quarter, according to latest Overseas Trade Index figures released by Statistics New Zealand. The dairy products index was the main contributor to the fall, down 26.8 percent. The index is at its lowest level since the December 2000 quarter when agricultural production was beginning to recover from two years of drought.

The merchandise terms of trade fell 0.2 percent in the September 2004 quarter. The fall in the index is due to export prices falling more than import prices in the latest quarter, and means that less imports can be funded from a fixed quantity of exports.

Merchandise export prices fell 1.1 percent in the September 2004 quarter, following a 7.2 percent rise in the previous quarter. The appreciation of the New Zealand dollar against our main trading partners' currencies has had a significant negative impact on export prices. Forestry products prices (down 5.9 percent) made the largest contribution to the overall fall in merchandise export prices in the September 2004 quarter.

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