Total exports rose by 11% compared with March 2016 to reach $4.6 billion in March 2017, Statistics New Zealand data showed yesterday.
The annual trade deficit for the year ended March stood at $3.7 billion, compared with the $3.8 billion shortfall for the year ended February.
SNZ’s international statistics manager Tehseen Islam said China continued to be New Zealand’s top destination for goods exports, accounting for a quarter of the total dairy exports by value.
"This March, exports to China exceeded $1 billion for the first March month since 2014," she said.
Exports to China in March were valued at $1.1 billion, up $326 million, or by 43%. Milk powder, butter and cheese rose by $114 million and lamb by $57 million, both of which led the rise.
ASB senior rural economist Nathan Penny said the trade balance was "largely in line with expectations" for March, the $332 million surplus only marginally lower than the market expectations of $370 million and ASB’s $450 million forecast.
However, export values were ‘‘a touch weaker’’ than expectations, Mr Penny said.
"While dairy export prices lifted as expected, up 7.4% month on month, a larger than expected dip in dairy export volumes offset much of this price strength," he said.
Dairy export volumes had fallen for five months in a row. March volumes were now some 11.9% below the March 2016 level, he said.
While dairy production had been weakened, Mr Penny believed it had been overstated, and as a result he expected dairy volumes and values to rebound over coming months.
"Over the remainder of 2017, we expect the underlying trade balance to lift, reflecting healthy meat and dairy export prices and lifting agriculture production," Mr Penny said.
In March, imported goods were valued at $4.3 billion, up by $303 million or by 7.6%, the increase led by car imports, up by $129 million, or 35%.
