Despite slow global economic growth, New Zealand's primary sector exports are outperforming expectations, achieving the country's largest monthly trade surplus since 1960.
According to Stats NZ, the merchandise trade surplus hit $1.4 billion in April, a sharp shift from a $12 million deficit in April last year. This marks only the fifth time New Zealand has recorded a trade surplus exceeding one billion Dollars.
“New Zealand has had only four monthly surpluses over $1 billion. The last two were in 2020 and two out of the four were also in April months,” according to Stats NZ spokesperson Viki Ward.
She noted that the overlap of the dairy and fruit harvest seasons played a key role in the record surplus.
Milk powder was the top export in April, generating $1 billion, an increase of 32% compared to April 2024. Fruit exports also surged significantly, rising from $265 million to $1.2 billion.
Karen Morrish, chief executive of New Zealand Apples & Pears, attributed the strong performance to excellent weather conditions and an early harvest, both of which played a major role in boosting exports, RNZ reports.
“It's very much the sentiment out there at the moment that the 2025 growing season is one of the best years on record. So we were able to start harvest early, the fruit was in excellent condition, the size was good.
“It meant that packouts through the pack house were good and we could take advantage of those early markets as well. All of those things combined has given that considerable push in the volumes and, hopefully, the eventual price,” she said.
Furthermore, the Wood Processors and Manufacturers Association (WPMA) stated that a coordinated collaboration between processors and the forestry sector is yielding positive results, as exports of logs, wood, and wood products rose by 42% year-on-year.
Chief executive Mark Ross described the $141 million increase as “reasonably significant” and an unexpected but welcome development.
“Members say that it's a pretty tough export market out there. So seeing this figure and the result, there's actually really pleasing, and it's also encouraging - because the sector has been doing it tough.”
Ross explained that efforts have been focused on increasing exports of value-added wood products rather than just raw logs, and that this continues to be their primary goal and strategy moving forward. He also said that demand for sustainable products is very strong, positioning New Zealand wood exporters to take full advantage of this growing market.
“We've got a great story to tell, around our sustainable forestry systems and the ability to trace our logs to harvest,” he said.
“It's really looked upon well by overseas exporters along with the quality of our products so we can supply clear timber and high-quality, value-added products.
“They're really well received around the world when it comes to building, construction and other uses.”
Both Ross and Morrish noted that it is still too early to assess the impact of US tariffs on exports over the coming year.
Currently, New Zealand timber and lumber exports to the US are exempt from the additional 10% tariff, but this exemption is temporary and subject to review.