New Zealand exports hit record high on rising dairy, lumber prices

Jan 31, 2011, 2:12 GMT

Wellington - Increased Chinese demand and soaring international prices for dairy products and lumber helped boost New Zealand exports by nearly 10 per cent to a record 43.5 billion New Zealand dollars (35 billion US dollars) last year, according to official figures released on Monday.

Sales to China rose 33 per cent to 4.8 billion New Zealand dollars, making it the second-largest market after neighbouring Australia, traditionally the country's largest customer, where exports topped 10 billion New Zealand dollars for the first time, Statistics New Zealand reported.

In addition, exports to Hong Kong were up 9 per cent to 866 million New Zealand dollars.

The United States remained the third largest market, although sales fell nearly 5 per cent to 3.8 billion New Zealand dollars.

It was closely followed by Japan, whose purchases rose nearly 20 per cent to 3.4 billion New Zealand dollars.

Asian countries dominated the list of New Zealand's biggest customers, with 11 of them ranked in the top 14 export markets.

The New Zealand economy remains predominantly agricultural with farm products and forestry accounting for more than half of total exports.

Milk powder, butter and cheese were the largest commodity category last year, recording a rise of 29-per cent in value to 10.3 billion New Zealand dollars, followed by meat at 5 billion New Zealand dollars, despite a 1-per cent fall.

Sales of lumber jumped 27 per cent to 2.9 billion New Zealand dollars.

The rising commodity prices saw New Zealand post a trading surplus of 1.1 billion New Zealand dollars, the first time the country's trade has been in the black since 2001.