Sheep farming in New Zealand has been strongly influenced by demand volatility and the return of meat and wool. Find out what other factors have influenced the industry since the first sheep arrived in New Zealand.
Since the beginning of European settlement, the production and export of agricultural products in New Zealand have been a major source of income. This situation has changed over time in response to new technologies, increasing scientific knowledge, and changing social influences.
Early sheep farming in New Zealand
The first sheep arrived in New Zealand in 1773, and by 1850, sheep farming was firmly established in South Island when good woolly sheep adapted to the climate. Wool was ideal for export because it was easy to store and ship and there was a strong demand overseas due to the growing textile industry.
Farming on the Northern Island was slow to begin because of the ownership of Maori land and expansive forest areas, which were costly. By 1900, the government had acquired 3.15 million hectares of land and made it available to European immigrants. Following this, mutton and lamb became a major source of income for sheep farmers on the North Island.
The rail expands and the meat is sent to the refrigerator
New Zealand's first public train was opened in Christchurch in 1863. In 1879, there were 1,282.5 miles of line on the South Island, including the main railway line from Lyttelton to Bluff. The extension of the rail made it possible to move the meat smoothly. New Zealand's first cold company was founded in Otago in 1881, and the first export of frozen meat went to London in 1882. Freezing also opened up the market for the export of dairy products.
The growth of the dairy industry
Dairy cooperatives were formed in the 1880s to raise money for dairy factories. In 1890, dairy products provided a growing portion of New Zealand's export earnings, and by the end of the century, the growing dairy industry in general paid for milk became more lucrative than sheep raising.
Research organizations help productivity
The government has played a significant role in the development of agriculture since the beginning of European settlement. They established the Department of Agriculture in New Zealand in 1892 to control the quality of exports and to conduct research. In 1926, the Department of Science and Industry Research (DSIR) was established to improve agricultural production, and in 1928, the first plant research plant was established. Grazing improvement was one way to increase productivity.
Topdressing provides efficient fertilizer
Commercial top dressing began with the distribution of superphosphate fertilizer in 1949, aiding the product. The same system was used to distribute the poison trap to help control rabbit numbers.
Post-war explosions
The offshore economy grew after World War II, bringing increased demand and prices for New Zealand agricultural products. This was a time of blossoming for farmers - they had a lot of money for new fertilizers and machinery and new growth in technology and scientific agricultural research increased stock numbers and improved productivity. In 1960, wool made up one-third of New Zealand's export earnings.
Decreased demand for wool
Wool prices dropped sharply between 1966 and 1967, marking the beginning of a gradual decline that continues to this day. Wool is facing competition from the growing market for fiber production and changing consumer demand.
In 1973, the first global oil shock increased the cost of gasoline, increasing production costs for farmers.
Government subsidies are short-lived
In 1977, the government introduced subsidies and assured farmers low prices for their produce despite declining prices. After that, stock numbers increased and exports increased.
All of that changed in 1984 when the new Labor government began removing lower prices and subsidies. After this, the reintroduction of lambs, including wool and wings, decreased by 50% and the numbers of sheep decreased significantly.
Performance-based choices
Falling returns for sheep farmers also contributed to the shift from selection to only one type of performance-based selection. This included selecting certain traits of great value to them at the time, such as the weight of the wool, the breeding, and the growth rates of the lambs. When geneticists began to measure the suitability of various features, they could provide farmers with guidelines for improving productivity. This led to new species such as Perendale, Drysdale, and Coopworth, being targeted.
The National Livestock Recording Fund (NFRS) was established in New Zealand in 1967 to provide genetic information on breeding rates and other genetic information to help farmers and sheep buyers select more productive sheep. In the early 1980s, half a million ewes were working on recordings each year. Since 2002, Sheep Improvement Limited (SIL) has been managing the recording program. Sheep farmer The ongoing commitment of sheep breeders to performance records has had a significant impact on the genetic development of New Zealand sheep since the start of the recording.
Farmers have also moved to new areas. For example, in 2014 there were 4 milking companies in New Zealand. By 2018, the number had grown to 16 producers. Lamb's milk is used for cheese, yogurt, infant formula, and other healthy food products.
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