Export growth not just China

June 12th, 2014 at 1:08 pm by David Farrar

Trans-Tasman reports:

Is NZ becoming too dependent on the Chinese market? It’s a question worrying many authorities as they see absorbing the bulk of NZ’s of milk powder, but also 50% of NZ wool and forestry exports, as well as big volumes of seafood, fruit and sheep meat. ANZ Bank economists Cameron Bagrie and Con Williams, taking what they call “a big picture view” have done an exercise studying alternate Asian markets. They say while the speed of the increase in NZ’s trade connectivity with China has been staggering (China now takes 22.6% of total exports), NZ has hardly been standing still in other markets.

Over the last 5 years, double-digit growth in exports has been achieved in 46 of the countries NZ trades with (22% of total).

We are of course vulnerable to China, but the fact we are growing other markets also mitigates the risk.

6 Responses to “Export growth not just China”

  1. Barnsley Bill (872 comments) says:

    Utter nonsense.
    The Chinese economy could tank and we would still see double digit growth in primary exports to china.
    They are only just getting used to dairy.
    We cannot produce enough to ever see that market stop growing.

    Vote: Thumb up 2 Thumb down 0 You need to be logged in to vote
  2. Sir Cullen's Sidekick (1,344 comments) says:

    Who is in power for the last 5 years? I think it is Labour and Greens….what say you minions? Vote Labour….

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  3. dirty harry (751 comments) says:

    Hmmm…National with John Key and Bill English.

    Liarbor with David Cunnliffe and whats -his-name..

    Tough choice come election time.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  4. Jack5 (9,494 comments) says:

    Meanwhile in China, on which NZ now depends heavily as an export market (directly, and indirectly through Australia) …

    The New York Times reports that Western banks and perhaps some Chinese lenders, too, are fretting because billions in loans they have issued to Chinese interests offering metal stockpiles as collateral may have been made on phony security – the stockpiles may be sham. If this proves to be the case, it could hit the flow of money going into Chinese purchases of commodities, and threaten world commodity prices.


    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  5. Jack5 (9,494 comments) says:

    Barnsley Bill posted at 1.13 that the Chinese are just getting used to dairy, and “we cannot produce enough to ever see that market stop growing.”

    NZ produced 3.23 per cent of the world’s dairy output in 2012, and China’s dairy output was 1.9 times the size of New Zealand’s. The Chinese have a helluva lot more land than us, and if prices stay really high they will switch from lower yielding agriculture, just as we have. Yes they have higher population density, but watch the news and you will see the population base is moving into cities as happened in the West centuries ago during the Industrial and Agricultural revolutions. This will free up hundreds of thousands of two and three hectare patches to be merged into farms.

    China will always be a net food importer, however, so it’s a good market for NZ, but it ain’t a pot of gold at the end of the rainbow.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  6. Aussie Aussie Aussie (22 comments) says:

    What you are forgetting is your Country to the Chinese is just like

    Hong Kong

    they will come and get it when they are ready to take it

    They just want to control your productive land to protect their Food supply

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote