27 Apr 2013

China in NZ trade top spot sooner than expected

7:45 am on 27 April 2013

China has surpasssed Australia as the leading export market for New Zealand more quickly than expected, an export group says.

Statistics New Zealand figures released on Friday show goods exported to China in the three months to March were valued at $2.3 billion, while exports to Australia were valued at $2.1 billion.

Export New Zealand executive director Catherine Beard says the demand for quality food products, including meat, dairy, seafood and kiwifruit has contributed to the increase of exports to China.

She said demand for New Zealand protein will continue to grow and the New Zealand's reputation for high food quality is critical.

Ms Beard said it had been predicted China would overtake Australia as the top export market, but not for another couple of years.

Beef and lamb exports to the value of $611 million were sent to China in the year to March, up 428% from the previous year.

Beef + Lamb New Zealand executive director of economics, Rob Davison, says New Zealand products are being promoted more in China as a result of a free trade agreement signed in 2008.

New Zealand China Council executive director Pat English says domestic demand is driving trade growth.

He says China is importing products to consume within the country rather than re-manufacture and send offshore.