2. NEW ZEALAND AND ITS AGRICULTURAL SECTOR
2.1 Geographical and Population Outline
New Zealand is situated in the south-west Pacific Ocean. It consists of two main islands, the North Island and the South Island, along with numerous smaller islands, with a total land area of 270,500 square kilometres.
New Zealand is over 1,600 km in length, and around 450 km wide at its widest part. The terrain of New Zealand is very mountainous, and only a quarter of the land area lies below 200 metres in elevation. The North Island (115,777 square km) and the South Island (151,215 square km) are separated by Cook Strait, which measures 20 km wide at the narrowest point. The smaller, Stewart Island (1,746 square km), lies offshore of the southern tip of the South Island.
New Zealand is a long, narrow, mountainous country, which is surrounded by a large expanse of ocean. The climate of New Zealand is affected by: its location in a latitude where westerly winds are prevalent; the oceanic environment; the mountain ranges and the resulting orographic effects. This can create "rain-shadows" in the leeward localities, often to the eastern side of the ranges, playing a large role in localised weather patterns. The predominantly westerly weather systems is periodically interrupted with cooler, southerly weather systems and warmer, northerly weather systems.
The ranges affecting the westerly progress of the weather systems result in more marked east-west differences in weather patterns, than the north-south climatic differences. Many parts of the country are exposed to extreme wind and rain events, with associated wind damage to property; cold fronts especially can lead to heavy rain resulting in flooding. The warmest temperatures in New Zealand usually, but not always, occur to the east of the main dividing ranges, where droughts can occur.
The population of New Zealand in the last Census, held in 1996, was 3,660,364. Of this, 75% lived in the North Island. Recent trends show a greater increase in the number of people living in the North Island, compared to the rate of increase for the South Island. The proportion of the population residing in rural areas of New Zealand has declined gradually over the last 50 years, and now only 15% of the population reside in rural areas. Reflecting the increasing urbanisation of the New Zealand population, 85% of the population live in urban areas, and 68% of the total population live in the major urban areas (centres with a population over 30,000 people).
About 29 percent of New Zealand is legally protected in a natural or near-natural state, but there are some significant gaps in representation. Conservation of indigenous plants is discussed in greater detail in Chapter 3.
The total area of New Zealand under agricultural and horticultural use (including exotic forestry plantings) is 17,335,531 hectares (at 30 June 1993). Of this, 13,946,136 hectares are under grassland, lucerne, tussock or danthonia, with 6,182,602 hectares in the North Island and 7,708,617 in the South Island. The area utilised for horticultural use is 94,607 hectares, with 68,123 hectares in the North Island and 26,462 hectares in the South Island. The area used for exotic forests is 1,395,758 hectares, with 1,022,907 hectares in the North Island and 372,738 hectares in the South Island. The concentration of horticultural land use and exotic forestry plantings is higher in the North Island than in the South Island, due to climate, soils and economic pressures.
The trend in New Zealand has been a decrease in average farm-size. The small farms (less than 40 hectares) made up 27% of all farms in 1972, and this value increased to 46% in 1992. Conversely, over the same period the number of mid-sized farms (40 to 200 hectares) decreased by 11% over the same period. The small farms are often termed "lifestyle blocks", and are frequently owned by farmers who have decided to live in rural areas, but gain their income from another non-agricultural occupation. The level of agricultural activity undertaken on these lifestyle blocks is often low, as the income generated from the production is not the main source of economic earning for those residing within it. The breakdown of farm size figures in 1993 was: 13% under 5 hectares; 33% between 5 and 39 hectares; 45% between 40 and 399 hectares; 8% between 400 and 1999 hectares; and 1% over 2000 hectares.
2.2 New Zealand Agriculture
Agriculture employs around 10% of the working population. The proportion of the New Zealand workforce employed on farms has declined from 9.8% in 1981 to 8.9% in 1995 and this trend is forecast to continue. Similarly, the proportion of the New Zealand workforce employed in the wider agricultural sector has declined from 19.0% in 1981, to 16.4% in 1995.
New Zealand's traditional reliance on agricultural exports has lessened from a high of 80-90% of exports by value in the mid-1960s, to about 50-60% at present. The value of New Zealand's total agricultural production fell by 3% in the year to 31 March 1995, to $10.2 billion.
The agricultural and horticultural industries in New Zealand are almost totally reliant on plants and animals imported from other countries. The main exception to this is the presence of native grass species in unimproved and semi-improved pastures. The timber industry still harvests native trees, notably in the west and south of the South Island, but at a much diminished rate following passage of the Forests Amendment Act 1993.
Pastoral farming
Around 55% of New Zealand farms include some sheep farming. This figure illustrates the continued importance of sheep farming in New Zealand agriculture, even though the national flock size has declined in recent years. New Zealand is the largest exporter of sheepmeat, contributing 43% of global exports. In the last 10 years the removal of subsidies and subsequent fall in returns from lamb and wool has resulted in a decline in sheep numbers from their highest levels of 70.2 million in 1982, to 47.1 million in 1995. Contribution to gross agricultural production by sheep and lamb has decreased, from 18.67% in the early 1970s, to around 10.57% at present. In 1995 New Zealand exported 350,000 tonnes of sheepmeat and 215,000 tonnes of wool.
The contribution from slaughtered cattle to gross agricultural production in New Zealand has changed little since the early 1970's. The 16% share that cattle contribute to gross agricultural production ensure that cattle are easily New Zealand's second largest agricultural export product. The national beef herd increased over the six years to 4.8 million head in 1995. The recent fall in market returns from beef sales is likely to lead to a reduction in the national herd size. Beef and veal exports were 318,000 tonnes in 1995.
Dairy products, as a proportion of New Zealand's gross agricultural production has increased from 22% in the early 1970's to close to 25% today. Of the total milk production, 5 per cent is used for town milk supply, with the remainder made into processed products, of which 85% are exported. Dairy produce accounts for 15% of New Zealand's merchandise exports. Only 5 per cent of global milk production is traded internationally, and New Zealand milk exports comprise 25% of this value.
New Zealand had 1.5 million head of farmed deer in June 1995, which represents over 40% of the world's farmed deer. Numbers have increased slightly since 1993. The main market for New Zealand's deer exports is Europe, which accounts for 90% by volume and 81% by value of total exports. Of the total value of deer exports : venison accounts for 60%; antler velvet accounts for 35%; and hides/skins account for the remainder.
Horticulture/Viticulture
Horticulture accounts for 14% of New Zealand's total agricultural export earnings. The value of these exports was $1.44 billion in the year to June 1995. Export earnings from horticultural produces are: 31% from kiwifruit; 26% from vegetables; 25% from apples; 14% from other fruit; and 4% from floriculture. Ornamentals other than cut flowers are not highly significant in terms of export earnings. However, they are very important locally for enjoyment and for gardening, which is one of the most popular forms of recreation. As such, the nursery and garden supplies industry, which is based on both exotic and indigenous ornamentals, contributes notably to GDP.
New Zealand accounts for 28% of total world kiwifruit exports. The total New Zealand kiwifruit production for 1995/1996 was 210,300 tonnes, worth $NZ 244m. Production is decreasing as vines are removed from less economically viable orchards.
New Zealand contributes only 1 per cent of the world apple production, but 10 per cent of the world apple exports, as only 7 per cent of all apples produced globally are exported (excluding trade within the European Union [EU]). The EU is the largest market taking 61% of exports. New Zealand orchardists are beginning to replace older apple varieties (e.g. Granny Smith) with newer higher returning varieties, such as Braeburn.
Demand for New Zealand wine has exceeded supply in the last few years, as the volume produced decreased due to poor grape harvests since 1991. However in 1995 the total wine crush rose to 74,500 tonnes and is expected to increase further due to increased plantings since 1993. Wine makes up 0.2 per cent of total New Zealand exports, with a value of around $41 million. The United Kingdom is the largest export market, accounting for 61% of wine exports.
As demand increases and the marketing of produce improves, exports of horticultural products from New Zealand should increase.
Production Forestry
New Zealand's planted production forest area is expected to reach 1.62 million hectares during 1996. About 71,500 ha of new plantings, (net of removals) are forecast for 1996, with 68,000 ha per year forecast thereafter until the year 2000. Radiata pine makes up about 91% of the planted production forest resource. Other planted production forest species include Douglas fir and other introduced hardwoods and softwoods. The bulk of the planted production forest resource (90% of the total planted area) is currently grown in plantations greater than 100 hectares. Many of the remaining smaller plantations are combined with pastoral farming. In 1995, planted production forest removals totalled 17million m3, and exports of forest products were valued at $2649m.
Seeds, Grains and other Field Crops
Production of seeds and grains contributes only 3% to the overall value of New Zealand's gross agricultural production, and the proportion of the agricultural land area under arable use is even smaller. However, New Zealand is well suited to produce forage seeds for export. New Zealand is not self sufficient in cereal production, and currently imports about half of its grain requirements. The area planted under wheat in New Zealand is currently around 44,000 hectares, and production was 227,000 tonnes in 1994. The amount of area planted with barley in New Zealand is presently about 82,000 hectares, and 405,000 tonnes were produced in 1994. Other grain crops produced in New Zealand include maize (133,000 tonnes in 1994), and oats (56,000 tonnes in 1994). Increased pig, poultry, and feedlot production are expanding the demand for grains in New Zealand, and with increasing concentrations of these industries in Canterbury.
Peas, potatoes, onions, squash and other vegetable crops are grown for domestic and export markets. Pea production was 60,000 tonnes in 1994, mainly for processing.
Trends and Concerns
- decreasing returns from and investment in traditional farming enterprises, particularly pastoral farming. The area of sheep and beef pastoral land has decreased over the last ten years, whereas the areas of dairying, forestry and most horticultural crops have increased.
- more farmers trying out new crops and adding value to their crops, so there is a demand for new and high quality plant varieties, particularly for horticultural crops.
- apparently increasing climatic variability and adverse conditions such as drought, and the resistance of some pests and diseases to pesticides, are factors plant breeders have to take into account.
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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