New Zealand: Sheep Numbers Decline as Farming Shifts
New Zealand has long been known for its sheep population, often jokingly referenced by those outside the country. Historically, the nation has seen more sheep than people—a situation that brought a unique charm to its identity. Recent data, however, shows that this trend is changing.
As of now, there are approximately 23.6 million sheep compared to 5.3 million residents, giving about 4.5 sheep for each person. This is a significant decrease from 1982, when the ratio was around 22 sheep for every person. At that time, sheep farming was a major income source, particularly for wool. However, the fall in wool prices and a global shift to synthetic fibers have forced farmers to rethink their strategies.
The Changes in Agriculture
New Zealand’s land area is comparable to the United Kingdom, yet its population is only a fraction—about 13 times smaller. This vast space traditionally supported a robust sheep industry, which thrived for nearly 150 years, peaking with over 70 million sheep and a much smaller population of 3.2 million in 1982. The picturesque landscapes filled with sheep had become key marketing points for the nation, particularly before the popularity of films like "Lord of the Rings."
Despite recent rallies in wool prices, the sheep population has continued to shrink, while dairy farming has become the dominant agricultural focus, overtaking sheep in the export market.
Farmers Adapt to New Opportunities
According to recent statistics, New Zealand’s sheep population dipped below five sheep per person for the first time last year, with one million fewer sheep recorded as of June 2024. Toby Williams from Federated Farmers stated that many sheep farmers are transitioning to more profitable ventures like dairy farming or converting their land for pine forestry, which allows them to sell carbon offsets.
Williams noted, “If I’m really honest, the wool industry is almost at that tipping point, if not already there, of not having a wool industry anymore.”
Government Initiatives for Wool Industry
In response to the declining sheep numbers, the government has introduced measures aimed at revitalizing the wool sector. In 2024, new limits were announced on farmland conversions to carbon forestry. Additionally, public procurement guidelines now encourage the use of New Zealand wool products in construction and renovations of public buildings. However, the effectiveness of these measures in reversing the declining sheep population remains uncertain.
Interestingly, the trend isn’t isolated to New Zealand. Australia, another nation famously known for its sheep, is experiencing a similar decline, albeit with a slightly better ratio of three sheep per person.
In this evolving landscape, the resilience and adaptability of the farming community will determine the future of sheep farming in New Zealand.
