Fonterra exports hit 2.1M mt

Fonterra has set a new export record, sending 2.1 million metric tons (mt) of product to international markets for the first time in its nine-year history.

The export tonnages were 60,000 mt higher than those achieved in 2008/09 and were a factor in New Zealand's six month run of consecutive trade surpluses.

Milk powder, butter and cheese all ranked among the leading exports which saw the June trade surplus hit $276 million and the year-to-June surplus reach $639 million.

Fonterra CEO Andrew Ferrier, said consistent demand across the year, particularly from markets in Asia, helped Fonterra to cross the two million ton milestone and end the financial year with tight inventories.

"The global recovery has been led by Asia, with demand from China particularly good. Every tonne that's left New Zealand has helped turn the tide with the balance of payment deficit. It's a good feeling to be helping hold the worst of the global recession's impacts on New Zealand's economy at bay one container at a time."

The record represents 140,000 20-foot equivalent containers (TEU) shipped from New Zealand ports from August 2009 to July 2010.

On average, Fonterra shipped 380 TEUs a day, with highs of 500 TEUs a day between the peak export months of November and April. Based on Kiwirail's average train length, which translates to seven trains a day dedicated to moving Fonterra products to the ports.

"Dairying provides around a quarter of New Zealand's exports and as economies like China and other parts of Asia move to higher living standards, the outlook remains very positive," said Ferrier.

"While we continue to see price volatility, dairy remains the standout performer, not only in primary sector exports, but also in overall exports and our consistent performance is not only good for farmers but for the economy as a whole."