WELLINGTON - A surge in China's demand for milk powder helped New Zealand achieve a trade surplus in July amid a 12-month deficit, the New Zealand government statistics agency announced Friday.

The value of New Zealand exports rose by 296 million NZ dollars ($240.55 million), or 8 percent, last month compared with July 2011, according to Statistics New Zealand.

"The increase in milk powder drove the increase in exports," industry and labor statistics manager Neil Kelly said in a statement.

"The trade surplus has fallen compared with July 2011, as the increase in imports was stronger than the increase in exports."

Imports rose by 383 million NZ dollars, or 11 percent, resulting in a small surplus of 15 million NZ dollars, or 0.4 percent of exports, compared with a surplus of 103 million NZ dollars, or 2.8 percent of exports, in July 2011.

Milk powder, butter and cheese had the largest increase of all commodity groups, up 264 million NZ dollars, or 33 percent, led by whole milk powder exports, which rose by 274 million NZ dollars, or 93 percent.

China accounted for more than a third -- 97 million NZ dollars -- of the increase in exports of whole milk powder, which contributed to a 39 percent increase (149 million NZ dollars) in New Zealand exports to China, said a commentary from Statistics New Zealand.

Venezuela and Algeria also accounted for large increases in New Zealand exports, also driven by whole milk powder.

Exports to New Zealand's largest market, Australia, fell by 66 million NZ dollars, or 7.4 percent, due to a decrease in crude oil and refrigeration equipment for storage and display.

Exports to India almost halved, falling by 54 million NZ dollars, or 48 percent, over a range of commodities, and they dropped by almost a third to Indonesia, falling by 24 million NZ dollars, or 32 percent, led by frozen beef.

For the year ended July, there was an annual trade deficit of 853 million NZ dollars, or 1.8 percent of exports.

Compared with June, July exports were down 0.4 percent and imports fell by 1.5 percent, with most major export commodities falling, offset by milk powder, butter and cheese, which rose 20 percent.