Bah humbug: Declining domestic sheep meat consumption has reduced industry revenue

The Sheep Farming industry has declined over the past five years. Falling sheep meat consumption over the period has negatively affected farmers that farm sheep to sell to downstream meat processors. In addition, rising consumer demand for cheaper sources of protein, such as poultry, has put downward price pressures on the sheep meat supply chain, influencing the industry. However, rising domestic wool prices and growing export earnings have limited the industry's decline over the past five years. Most of the industry's exports are wool, and rising export revenue has caused sheep farmed for wool to increase as a share of the industry. Revenue is expected to decline at an annualised 1.5% over the five years through 2017-18, to reach $2.65 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Participation has fallen as farmers increasingly switch to other agricultural commodities
  • Falling input costs have boosted industry-wide profit margins over the past five years
  • Rising export earnings are expected to boost industry revenue over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Sheep Farming industry is highly fragmented. Although there are numerous large sheep farmers in New Zealand, some with more than 15,000 sheep, none are large enough to have a significant influence or sway over the industry. The industry's largest player is expected to account for only 2.1% of industry revenue in 2017-18. The majority of industry operators are expected to be family-owned and operated. These farms typically rely on family members to carry out the majority of labour required on the farm. The industry's market share concentration has increased slightly over the past five years, due to the exit of some sheep farmers. However, no remaining players have significantly increased their market share or control over the industry over the period...purchase to read more.

    Additional Insights for the Sheep Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sheep Farming Industry 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 Domestic price of wool 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 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 for private sales
  • Wool for auction sales
  • 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
  • Domestic price of wool
  • Domestic price of sheep meat
  • Level of annual rainfall
  • Sheep meat production
  • Trade-weighted index
  • Sheep meat consumption

  • Current Performance
  • Revenue and profitability
  • Differing fortunes
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • International 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
  • Wool for auction sales
  • Wool for private sales
  • Lambs
  • Sheep
  • Chart: Sheep Farming Industry Products and Services Segmentation

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

  • Major Markets
  • Wool wholesalers and processors
  • Meat 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
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Repairs and maintenance
  • Other
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A lamb between weaning and first shearing.
  • 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
    • 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.

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