meat and wool
Agriculture forms the basis of the economy in Southland, largely due to the ideal climactic conditions. Southland has a temperate climate which prevents stock from being stressed by extremes in temperature. Even rainfall
spread and high sunlight hours mean there is higher pasture growth through spring and summer than other areas thus stock can be farmed more intensively and on demand when necessary. Southland is fortunate to be free of many nationally prevalent pests, as frequent frosts also produce relatively disease-free soils.
Subsidies for farming were removed by the government in 1984, which created a situation where farmers had to become more productive and efficient in order to survive. Prior to that, farming incomes in New Zealand included up to 40% of government subsidies. Now primary industries succeed or fail on their export and local market earnings.
Strengths and competitive advantages
- Southland’s strengths lie innate in its landscape – the climate, topography, soils and sunlight.
- Southland has the highest lambing percentage in New Zealand (138%)
- Intensive sheep and beef farms have more opportunities for diversification within the farm for example; breeding, finishing, hogget lambing, trading livestock, growing crops and grazing outside stock.
Trends and opportunities
- Fewer deer, sheep and beef farms due to increasing numbers of dairy conversions
- Cheese production from sheep milk, which could increase even further as a market due to the high cost of dairy products at present
- Organic sheep and beef meat production
- Meat farmers are looking towards co-ordination and co-operation of marketing activities in the international market
- Potential amalgamation of meat processing companies