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 NZ$296 million ($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 NZ$383 million, or 11 percent, resulting in a small surplus of NZ$15 million, or 0.4 percent of exports, compared with a surplus of NZ$103 million, or 2.8 percent of exports, in July 2011.

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

China accounted for more than a third-- NZ$97 million-- of the increase in exports of whole milk powder, which contributed to a 39 percent increase (NZ$149 million) 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 NZ$66 million, 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 NZ$54 million, or 48 percent, over a range of commodities, and they dropped by almost a third to Indonesia, falling by NZ$24 million, or 32 percent, led by frozen beef.

For the year ended July, there was an annual trade deficit of NZ$853 million, 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.