Bakers prefer butter, helping prices soar
Consumers around the world are willing to pay more for products containing dairy and this is driving demand for butter and cream, says Fonterra.
"Dairy export volumes are at record levels, after adjusting for seasonal effects," Statistics NZ prices manager Chris Pike says. "Dairy values remain at high levels, even though export prices have fallen for five consecutive quarters."
Dairy products made the largest contribution to a 9.7% rise in seasonally adjusted export volumes. Meat export volumes rose 15%. Import volumes rose 0.7% led by intermediate and capital goods.
Export prices fell 6.3%, led by dairy prices (down 13%), while import prices fell 3.3%, led by a fall in petroleum and petroleum product prices (down 13%).
In the September 2012 quarter, the terms of trade fell 3.2%. A fall in the terms of trade means that fewer imports can be funded by the same quantity of exported goods. The terms of trade are 9.1% lower than a year ago.
The price and volume indexes for exports and imports of goods are compiled mainly from overseas merchandise trade data.
