Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
Exports rose $671 million in the March month, to $5.1 billion with milk powder, butter, and cheese up $474 million (45%) compared with March 2013.
"This is the first time monthly exports have exceeded $5 billion, and annual exports have exceeded $5 billion," says international statistics manager Jason Attewell. "Record dairy exports pushed the values past these thresholds."
Imports rose $483 million (13%) to $4.2 billion, which was influenced by a one-off large capital item. The trade surplus was $920 million. This is the highest recorded surplus for a March month.
For the March quarter meat and fruit lead the rise in total value of export goods by 2.1% to $13.6 billion in the March 2014 quarter, Statistics New Zealand says. This follows rises in the previous two quarters.
"Meat and fruit led the increase in seasonally adjusted exports Attewell says. "This is the second consecutive quarter that both values and quantities for these two commodities have risen."
Seasonally adjusted meat values rose 8.7% in the March quarter, and quantities rose 6.8%. Fruit values rose 27% , and quantities rose 20%.
The rise in meat and fruit was offset slightly by a fall in milk powder, butter, and cheese, down 2.4%. The fall in dairy follows 26% increases in both the September and December 2013 quarters. Despite the small fall this quarter, dairy remains at high levels and is the leading contributor (31% to total exports.
Imports rose 1.5%to $12.5 billion in the March 2014 quarter. The increase was led by a rise in capital goods.
The seasonally adjusted trade balance for the March 2014 quarter was a surplus of $1.1 billion. This follows a surplus of $986 million in the December 2013 quarter.
