There is more evidence New Zealand's export performance is faltering in the face of the high exchange rate as exports fall for the second time in three months.
Exports fell 11% to $3.5 billion in October led by milk powder, butter and cheese, though volumes of these products increased.
Accounting for seasonal factors the fall in exports was nearly 14% to $3.4 billion from a peak of $4.1 billion in the middle of the year.
A fall in dairy prices resulted in the third successive monthly trade deficit of $718 million in October, compared with a $226 million shortfall the same month last year.
Dairy prices are expected to turn around in the coming months as recent rises in Fonterra's fortnightly auction filter through to higher priced contracts.
Logs and wood exports rebounded as signs of a pick-up in China are beginning to be felt by local sellers.
Statistics New Zealand says the trend for export values have fallen 6% since its peak in November last year, while the trade weighted exchange rate index has risen 5.5% since October last year.
Imports rose 2% to $4.2 billion, with the main contributions coming from capital goods such as plant and machinery, including mobile phones, and consumption goods like furniture and carpets.
On an annual basis, the deficit widened to $1.4 billion.
