Dairy exports to China down in December

New Zealand's biggest goods export, dairy products, fell $377 million (19 percent) in December 2020, compared with the same month in 2019, Stats NZ said today.

"Dairy export values and volumes both fell in December, compared with the same month a year before," international trade manager Alasdair Allen said.

Typically, monthly dairy exports rise towards the end of the year, with a peak in December.

"For the first time since 2008, dairy exports fell between November and December," Mr. Allen said.

"Dairy exports fell in the month despite a slight rise in milk production in the 2019/20 season, with dairy cow herd numbers relatively steady."

Leading the total falls in December 2020 were milk powder, down $227 million, butter, down $62 million, and milk fats, down $51 million on the same month in 2019.

"The drop in dairy exports was mainly due to a fall in sales to New Zealand's biggest export market, China," Mr Allen said.

Total dairy exports to China fell $194 million (21 percent) to $740 million in December 2020. This was led by falls in milk powder, down $113 million.

"This is also the first time in six years that there has been a fall in dairy product exports to China in the December month," Mr Allen said.

The large fall in dairy exports was a key factor in total exports falling $149 million in December 2020 compared with December 2019.

The drop in dairy exports was partly offset by a rise in exports of respiratory equipment, up $93 million in December.

Car imports recover

Total imports rose $213 million (4.2 percent) in December 2020 compared with December 2019, led by cars.

"Monthly car imports fell sharply early in 2020 when COVID-19 first hit, but values have bounced back to more typical levels," Mr Allen said.

Car imports were up $106 million in December 2020 compared with December 2019.

Imports of electrical and machinery products were up $90 million, and iron and steel up $41 million in December.

Monthly trade balance

The monthly trade balance in December 2020 was a surplus of $17 million. The previous five December months all saw deficits.