New Zealand’s producers of major exports have been earning the country record returns in foreign markets.
It’s the news which should buoy the whole country after such a tough year.
ANZ’s monthly commodity price index rose 6% in March on February, and is 20% higher than a year ago, to peak at its highest point since it was started in 1986.
Standing out has been the strength of global dairy prices, which gained 12.7% in March, the highest in seven years. Returns for whole milk powder, a key driver for Fonterra’s suppliers, were 43% higher than last year.
ANZ’s agricultural economist Susan Kilsby said:
“Dairy prices are currently being supported by strong global demand, combined with a steady milk supply in the main dairy-exporting nations”.
Meat was close to a one-year high, while logs and aluminium were sitting near two-year highs.
The common feature of the strong prices and demand was China, which was growing more strongly than most economies after the pandemic, Kilsby said. Continue reading “China’s growth is a key factor in lifting returns from NZ’s major exports”