The US last month overtook Australia as New Zealand’s second-largest export market amid increased demand for wine and meat.
Exports to the US rose to a record 8.8 billion New Zealand dollars ($5.4 billion) in the 12 months to May, Statistics New Zealand announced in Wellington on Monday. That is 8.9% more than the same period last year. By comparison, annual sales to Australia fell 2.4% from a year earlier to NZ$8.7 billion, having fallen from as much as NZ$9.1 billion in mid-2023.
Although China is New Zealand’s largest market, with exports worth NZ$17.9 billion in the year to May – 26% of the total – Australia has been comfortably in second place since the late 1980s, boosted by a free trade agreement and the proximity of the Tasman Sea. . The relative strength of the US economy is contributing to demand for New Zealand products, while the Kiwi dollar’s 3.3% decline against the greenback this year has also boosted the value of sales.
The New Zealand dollar has fallen just 0.4% against the Australian dollar since January 2.
Overall, New Zealand exports rose to a record NZ$7.2 billion in May, with sales to the US reaching a record NZ$1.02 billion.
US shoppers bought more wine, dairy products and meat in May, the statistics agency said, while Australian customers bought less mechanical machinery.
May is typically a peak time for exports because it is the height of the fruit and vegetable season after summer in the Southern Hemisphere, the statistics agency said. Wine exports increased by 38% compared to May last year, the report said.
