Sinking sheep: Declining domestic sheep meat consumption has reduced industry revenue

The Sheep Farming industry's performance has declined over the past five years. A decrease in domestic sheep meat consumption has negatively affected farmers that farm sheep to sell to downstream meat processors. Fluctuating sheep meat prices have also caused many farmers to switch to less volatile agricultural activities, which has reduced sheep meat production over the past five years. A fall in wool prices has also reduced wool production over the period, further constraining the industry's performance. Industry revenue is expected to decline at an annualised 6.3% over the five years through 2018-19, to $2.0 billion. This includes an anticipated decline of 2.7% in 2018-19.Industry enterprise numbers have declined over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Participation has fallen as farmers have increasingly switched to other agricultural commodities
  • The industry generates a moderate share of revenue through export markets like China
  • Rising export earnings are projected to boost industry revenue over the next five years
  • Industry Report - Industry Investment Chapter

    The industry’s comparatively low wage costs indicate a highly capital-intensive industry. For every dollar spent on capital, an estimated $1.45 is spent on wages. However, the industry’s capital intensity level is skewed by the high proportion of owner-operators in the industry. Most owner-operators draw their incomes through profit rather than assigning themselves a wage. This trend inflates profitability at the expense of wages. Consequently, the industry’s wage costs under-represent its labour requirements, with capital intensity reducing after accounting for imputed wages. Labour functions include sheep feeding, transport and upkeep. Capital items include pens, barns, sheds and other storage facilities, irrigation systems, vehicles and machinery. Cap...purchase to read more.

    Additional Insights for the Sheep Farming Industry

    IBISWorld has determined the most important Key Success Factors for the Sheep Farming are:

  • Superior financial management and debt management
  • Proximity to key markets
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Sheep meat production and Domestic price of sheep meat in the Sheep Farming industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Sheep Farming in New Zealand Industry?

    Industry operators are primarily engaged in farming sheep for their meat and wool. Operators that farm both sheep and beef cattle are excluded from the industry.

    Industry Products
  • Lambs
  • Sheep
  • Wool
  • Industry Activities
  • Sheep farming
  • Wool growing
  • Prime lamb raising
  • Raw sheep milk production
  • Sheep agistment service
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Sheep meat production
  • Domestic price of sheep meat
  • Level of annual rainfall
  • Trade-weighted index
  • Wool production
  • Domestic price of wool

  • Current Performance
  • Revenue and profitability
  • Meat and wool
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Wool trade
  • Industry structure and technology
  • Table: Sheep Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sheep Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Meat Processing in New Zealand
  • Wool Wholesaling in New Zealand

  • Key Selling Industries
  • Livestock and Other Agricultural Supplies Wholesaling in New Zealand
  • Shearing, Cropping and Agricultural Support Services in New Zealand
  • Veterinary Services in New Zealand

  • Products & Services
  • Lambs
  • Wool
  • Sheep
  • Chart: Sheep Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Demand for sheep raised for meat production
  • Demand for wool

  • Major Markets
  • Meat processors
  • Wool wholesalers and processors
  • Export markets
  • Other farmers
  • Chart: Major Market Segmentation for the Sheep Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Sheep Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sheep Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Sheep Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sheep Farming Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Agistment Service
  • The act of taking in livestock for feeding as a service for payment.
  • On The Hook Sales
  • The act of meat processors transporting livestock from a farm to their processing facility. In this situation, the farmer typically retains ownership of the animal until it is slaughtered.
  • Virtual Fences
  • The concept of using technological collars that emit a magnetic pulse to control livestock roaming.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sheep Farming in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sheep Farming in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sheep Farming in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sheep Farming in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.