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Sheep
March 17, 2018 - On the road to Cape Reinga.
Sheep for wool and meat were integral to the development of New Zealand, but the industry has declined in recent decades, ceding to more profitable land uses, particularly dairy and vineyards.  According to Stats NZ the sheep population peaked at 70.3 million in 1982 or 22 sheep for every New Zealander; as of June 2017 there were fewer than six sheep for every New Zealander or a total of 27.5 million.   One factor to remember is that whereas there formerly was significant government intervention in agriculture, such as subsidies and tax incentives to increase stock numbers,  in the 1980 the government ended agricultural subsidies.  There are about 30 major breeds in New Zealand; the most common breed being NZ Romney,  particularly on the North Island.  Different breeds (+) are better suited to different parts of the country, require more or less maintenance, and have different wool types.  Northland has a relatively small number of sheep; according to Stats NZ (+) in 2016 there were 366,197 (compare Otago 4.8m, Canterbury 4.6m and Southland 3.7m). 

The first export of frozen sheep meat sailed from Port Chalmers in Otago for Britain in 1882.  Today sheep meat now produces significantly more revenue than wool on the export market.  According to the Compendium of New Zealand Farm Facts 2017, the value of New Zealand exports for the year ended 30 June 2016 (NZ$ FOB) of raw wool was $759.7 million compared to $2,568.8 million for lamb and $419.1 million for mutton.  According to the Ministry for Primary Industries, New Zealand is the number one exporter of sheep meat (+).  For exports of lamb (by volume) China is the biggest market  followed by Great Britain and U.S.A., although regionally the European Union receives as much as North Asia. 

Most New Zealand wool is the strong type, used for production of rugs, carpets and yarn.   Synthetic fibers have led to a significant decline in the New Zealand wool industry, although it remains a top wool exporter.   Matters reached a point where in 2001 growers terminated the New Zealand Wool Board, which, funded by a levy, had promoted New Zealand wool since 1944.  In July 2017 National Business Review reported, "New Zealand just fiinished its worst wool season since the global financial crisis as China, the largest buyer of the fibre, switched its preference to fine wool..."  Animal welfare groups have also posed a challenge.  In Nov. 2016 PETA launched an "I'd rather go naked than wear wool" campaign.  In support of wool, HRH The Prince of Wales has been an enthusiastic promoter of its uses and properties and The Campaign for Wool, of which he is a patron, has a strong New Zealand component.

  • According to Stats NZ, the sheep population peaked at 70.3 million in 1982 or 22 sheep for every New Zealander; as of June 2017 there were a total of 27.5 million or fewer than six sheep for every New Zealander.
  • Northland has a relatively small number of sheep; according to Stats NZ in 2016 there were 366,197 (compare Otago 4.8m, Canterbury 4.6m and Southland 3.7m).  
  • According to the Compendium of New Zealand Farm Facts 2017, "In 2015-16, New Zealand was the third largest producer of wool in the world and produced 9.5% of world production."  However, WorldAtlas reports that for 2016-17, New Zealand was the fourth largest producer after Australia, China and U.S.A., accounding for 11% of world production (+).
  • According to the Compendium of New Zealand Farm Facts 2017 [NZ$], "Wool fibre export earnings for the year ended 30 June 2016 were $760.1 million FOB.  Wool carpet and rug export receipts were $132.5 million FOB, with intermediate products (tops, yarns and sliver) and other final woollen products contributing a further $47.8 million FOB.  All wool products represented 2.0% ($940.3 million FOB) of the total value of New Zealand merchandise exports." 
  • According to the Ministry for Primary Industries, New Zealand is the number one exporter of sheep meat (+).  The Compendium reports the value of New Zealand exports of lamb for the year ended June 30, 2016  (NZ$FOB) was $2,568.8 million and $419.1 million for mutton.
  • According to the Meat Industry Association, for Jan. 2018 China was the top export market for New Zealand sheepmeat by volume and by value. (NZ$).  China accounted for 18,221 tonnes or 42% of the 43,028 tonnes exported, and $107.1 million or 28% of the total $381.2 million.  The number two market was the United Kingdom at 5,312 tonnes or 12% of the total volume and $50.4 million or 13% of value.
 

Notes:
Hugh Stringleman and Robert Peden. "Sheep farming."  Te Ara - the Encyclopedia of New Zealand, Nov. 24, 2008, updated  Mar. 3, 2015.   http://www.TeAra.govt.nz/en/sheep-farming

--.  "Sheep number falls to six for each person,"  Stats NZ, Jan. 19, 2017.
https://www.stats.govt.nz/news/sheep-number-falls-to-six-for-each-person

--.  "Off the sheep's back: a look at historical wool export prices and volumes,"  Stats NZ, 2011.
http://archive.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/historical-wool-export-prices-volumes-2011.aspx

Warren E. Johnston and Gerald A.G. Frengley.  "The Deregulation of New Zealand Agriculture: Market Intervention (1964-84) and Free Market Readjustment (1984-90)."  Western Journal of Agricultural Economics, 16(1): 132-143 [1991].
https://ageconsearch.umn.edu/bitstream/32633/1/16010132.pdf

Daniel Conforte, Samuel Dunlop, and Elena Garnevska.  "New Zealand Wool Inside: A Discussion Case Study."  International Food and Agribusiness Management Review.  Volume 14, Issue 3, 2011. http://ageconsearch.umn.edu/bitstream/114716/2/20110034_Formatted.pdf

Tina Morrison.  "New Zealand closes door on worst wool season since the GFC."  National Business Review.  July 5, 2017.  https://www.nbr.co.nz/article/nz-closes-door-worst-wool-season-gfc-chinese-demand-dries-b-204888

--.  "Compendium of New Zealand Farm Facts 2017. " Beef + Lamb New Zealand.
https://beeflambnz.com/knowledge-hub/PDF/compendium-farm-facts

Meat Export NZ (blog): http://meatexportnz.co.nz/




more information:














www.nzshearing.co.nz





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Wool prices
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