Shear luck: Revenue is anticipated to grow as wool prices rise and export demand increases

The Sheep Farming industry's performance has been volatile over the past five years. However, industry revenue has ultimately fallen over the period, partly due to declines in wool production and prices. In addition, a decrease in domestic sheep meat consumption has negatively affected sheep farmers that sell to downstream meat processors. Sheep meat production has fallen over the past five years, partly due to declining domestic consumption. However, farmgate prices for both lamb and mutton have risen over the past five years, supporting local sheep farmers. Industry revenue is expected to decline at an annualised 1.0% over the five years through 2019-20, to $2.6 billion. Revenue is anticipated to decline by a further 4.1%...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 15-20
-1.0%
Forecast Growth 20-25
Profit
Employment
5,488
Businesses
5,202
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 such as China
  • Rising export earnings, particularly from wool, are projected to benefit the industry
  • Industry Report - Industry Products Chapter

    Most operators in the Sheep Farming industry keep a mixture of lambs and sheep. However, farmers typically focus on raising livestock for meat production or wool production, with few farmers focusing on both. Sheep meat accounts for most of industry revenue, with a smaller proportion of revenue derived from wool.LambsLamb is the most popular sheep meat for consumption, both domestically and overseas. Consequently, lambs account for the majority of livestock sales. This segment has increased as a share of industry revenue over the past five years, despite falling domestic consumption. Strong export demand has boosted the farmgate price of sheep meat over the period...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..

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    What's in this report

    What is the Sheep Farming in New Zealand Industry?

    Industry operators primarily farm 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
  • 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
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hogget
  • A sheep between one and two years of age.
  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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
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    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.

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