10 December 2004
Overseas Trade Indexes: September 2004
Export Volumes Fall 8.7 Percent
Seasonally adjusted merchandise export volumes fell 8.7 percent in the September 2004 quarter, according to latest
Overseas Trade Index figures released by Statistics New Zealand. The dairy products index was the main contributor to
the fall, down 26.8 percent. The index is at its lowest level since the December 2000 quarter when agricultural
production was beginning to recover from two years of drought.
The merchandise terms of trade fell 0.2 percent in the September 2004 quarter. The fall in the index is due to export
prices falling more than import prices in the latest quarter, and means that less imports can be funded from a fixed
quantity of exports.
Merchandise export prices fell 1.1 percent in the September 2004 quarter, following a 7.2 percent rise in the previous
quarter. The appreciation of the New Zealand dollar against our main trading partners' currencies has had a significant
negative impact on export prices. Forestry products prices (down 5.9 percent) made the largest contribution to the
overall fall in merchandise export prices in the September 2004 quarter.
Also contributing to the fall were lower prices for meat products (down 1.3 percent) and wool (down 1.6 percent). All of
the major export series recorded price falls in the current quarter, except dairy products (up 1.6 percent) and fish and
fish preparations (up 1.3 percent).
Import prices fell 0.9 percent in the latest quarter, reflecting the stronger New Zealand dollar. The falls in prices
of mechanical machinery (down 2.9 percent) and electrical machinery (down 2.4 percent) were the main contributors to the
fall in merchandise import prices. Partly offsetting this fall were higher prices for petroleum and petroleum products
(up 6.0 percent), iron and steel (up 8.5 percent), and plastics and plastic articles (up 1.2 percent). ƒnƒn
The seasonally adjusted volume of merchandise imports fell 2.4 percent in the September 2004 quarter, the first decrease
since September 2001. The fall follows a quarter in which additional diesel and motor spirits were imported to cover
lost production while the Marsden Point refinery underwent maintenance. If fuel imports are excluded, import volumes
would have increased 0.1 percent. However, a large aircraft valued at over $100 million contributed to import volumes in
the September 2004 quarter.
Brian Pink Government Statistician
ENDS