Monday, 02 September 2013 17:00

Terms of trade rise

Written by Pamela Tipa

font size decrease font size increase font size
Print
Email

Dairy was the main contributor to New Zealand's terms of trade rising 4.9% in the June 2013 quarter, due to rising export prices and falling import prices, Statistics New Zealand says.

Terms of trade is a measure of the purchasing power of New Zealand's exports abroad. An increase means that New Zealand can buy more imports for the same amount of exports. The terms of trade rose for the second consecutive quarter but is still 2.5% below the 37-year high reached two years ago.

"The terms of trade increase of 4.9% reflected higher dairy prices", prices manager Chris Pike says. "Without dairy, the terms of trade would have risen 1.6%."

In the June 2013 quarter:
• export prices rose 3.4%
• import prices fell 1.5% (reflecting lower prices for crude oil and capital goods)
• seasonally adjusted export volumes fell 6.7%
• seasonally adjusted import volumes rose 3.9%, influenced by capital goods.

Dairy exports made a significant contribution to both prices and seasonally adjusted volumes, with milk powder being the largest contributor. In the latest quarter, dairy export:
• prices rose 14%
• seasonally adjusted volumes fell 18%
• seasonally adjusted values fell 6.8%
The price and volume indexes for exports and imports of goods are compiled mainly from overseas merchandise trade data.

More like this

Tough trade

OPINION: Known for serious trade negotiations with global politicians, top NZ trade official Vangelis Vitalis also knows how to crack jokes.

Top NZ trade official warns dairy sector faces highest global trade barriers

New Zealand's top trade official has told dairy farmers that their sector faces the most trade barriers internationally.

Zespri global sales top $5 billion for 2024–25 season amid strong demand

Zespri says global sales for the 2024-25 season topped $5 billion on the back of strong demand and market returns.

Changing global trade ties

OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.

NZ's top trade negotiator warns golden era of international trade is over

The golden weather of international trade is well and truly over, according to New Zealand's top trade negotiator.

Featured

Editorial: Support, don't stifle farmers

OPINION: Ministry for Primary Industries' situation outlook for primary industries report (SOPI) makes impressive reading.

AI-powered fertiliser mapping a game changer for farmers

Sheep and beef farmers Matt and Kristin Churchward say using artificial intelligence (AI) to spread fertiliser on their sprawling 630ha farm is a game changer for their business.

HortNZ Board Election 2025: Growers urged to vote before 10 July deadline

Commercial fruit and vegetable growers are being encouraged to cast their votes in the Horticulture New Zealand (HortNZ) board directors' election.

Biolumic’s UV light breakthrough set to transform ryegrass and reduce methane

A unique discovery by a Palmerston North science company, Biolumic, looks set to revolutionise the value and potential of ryegrass and the secret is the application of ultraviolet (UV) light.

NZ Startup Turns Sheepskin into World-Leading Collagen Supplement

A New Zealand company is redefining the global collagen game by turning New Zealand sheepskin into a world-class health product.

ANZ offers support for farmers and businesses affected by extreme weather

With further extreme weather on the way, ANZ Bank is encouraging farmers and business owners impacted by the recent extreme weather and flooding to seek support if they need it.