Geography

New Zealand lies in the southern Pacific Ocean, 1,600 km east of Australia.
It is made up of the North and South Islands and a number of smaller islands, with a total land area of 268,021 sq km.
Mountain ranges and hill country dominate New Zealand's landscape.
One of the most striking physical features is the Southern Alps/Kä Tiritiri o te Moana, along with fiords, glaciers and lakes, and the coastal plains of Canterbury and Southland of the South Island.
In the North Island, the volcanic interior contains New Zealand's largest lake, Lake Taupo. Most of the country's active volcanoes - Ruapehu, Ngauruhoe and Tongariro - are all usually quiet, although Ruapehu has been active since September 1995.
Hot springs, geysers and mudpools also form part of the volcanic system centred around Rotorua.

Highest mountain Aoraki/Mt Cook (3,754 m)
Deepest lake Lake Hauroko (462 m)
Longest river Waikato River (425 km)
Largest glacier Tasman Glacier (28.5 km long)

Deepest cave Nettlebed (NW Nelson) (889 m)

Climate

January and February are New Zealand's warmest months and July normally its coldest.
The climate is temperate - averages range from 8°C in July to 17°C in January - but summer temperatures occasionally reach the 30s in many inland and eastern regions.
The mean average rainfall varies widely - from less than 400 mm in Central Otago to over 12,000 mm in the Southern Alps.
For most of the North Island and the northern South Island the driest season is summer. However, for the West Coast of the South Island and much of inland Canterbury, Otago and Southland, rainfall is lower over winter.

Agriculture in New Zealand

Agricultural and forestry products earn more than half of New Zealand's export income. Agriculture has been a major earner in New Zealand's economy for more than 100 years.
Farming animals, growing crops, and forestry uses over half of New Zealand's available land.
Farming and forestry employed about 8.5 percent of employed people aged over 15 years in 2001.

Stock Numbers

Sheep, beef and dairy cattle and deer at 30 June 2002
Thousand (000)
Total sheep 39,546
Total beef cattle 4,495
Total dairy cattle 5,162
Total deer 1,644

Changes in farming
Dairy and deer farming are continuing to expand while sheep and beef farming are declining. There have been 1,650 new dairy farms over the last 10 years.
Grazing and arable land use has decreased by 12 percent since 1994 to 12.0 million hectares in 2002.
Animal farming used 76 percent of all agricultural land in 2002.
Since 1994, the intensity of land use in New Zealand has increased as sheep numbers continue to decrease and dairy cattle numbers increase.
More land is being used for horticulture as the area in wine grapes continues to increase.
The area planted in production forest has increased by more than a quarter since 1994 as marginal farming land is converted. Between 1994 and 2003 360,000 ha of farmland has been planted in forestry.

Dairy cattle
Dairy cattle numbers have increased from 3.8 million in 1994 to 5.2 million as at 30 June 2002, which represents a 34 percent increase. Waikato remains the region with the highest number of dairy cattle with 1.7 million as at 30 June 2002. This is an increase of 16 percent since 1994.

The South Island herd, which totals 1.3 million, was 26 percent of the national herd as at 30 June 2002. In 1994, 15 percent of the national herd was in the South Island. The Canterbury region, with 0.5 million, combined with the Southland region, with 0.4 million, made up 68 percent of the South Island's dairy herd. New Zealand's total milk production for the season to 31 May 2003 (including milk used on farms and in the domestic liquid milk market) is estimated at approximately 1,179 million kilograms of milksolids (kgMS) (around 13.8 billion litres of liquid milk). As with the past three dairy seasons, this is again a record volume for the New Zealand industry.

Sheep
Total sheep numbers have decreased by 20 percent since 1994 to reach 39.5 million as at 30 June 2002. Sheep numbers have been declining since 1982 and are now at their lowest level since 1955. This reflects continued land use conversions to deer, forestry and dairy (particularly in the South Island), the drought conditions, and farming policy shifts from sheep to beef. Sheep numbers are expected to remain relatively stable with a projected 38.6 million by June 2007. There were 29.1 million ewes and hoggets put to ram as at 30 June 2002, which is a 6.6 million (19%) decrease since the 1994 census of agriculture.

Decreases in sheep numbers were recorded across all regions as at 30 June 2002. The largest decrease was in the South Island where the flock decreased by 21 percent since 1994 to 21.1 million. The North Island flock decreased by 18 percent to 18.4 million. The Canterbury region still has the largest number of sheep &endash; 7.8 million as at 30 June 2002. The estimate of lambs docked as a percentage of mated ewes and ewe hoggets was a new record at 114% in spring 2002.

Sheep meat production is estimated to rise by 1.9% to 531,000 tonnes carcass weight (cw) for the year ending September 2003. Lamb production, while up slightly at 416,000 tonnes cw, has been slightly impacted by summer/autumn drought conditions. For year the ending September 2003, export volumes of lamb are estimated at 352,000 tonnes carcass weight equivalent (cwe) and export volumes of mutton are estimated at 89,100 tonnes cwe. In total, sheep meat export volumes are estimated at 441,000 tonnes cwe, up 2% on last year.

Over the forecast period, sheep meat production is projected to rise to 558,000 tonnes cw for the year ending September 2008, due to a continuing rise in the productivity of lamb births and lamb slaughter weights. Total sheep meat exports are projected at 464,000 tonnes cwe by year ending September 2008.

The European Union (EU) remains New Zealand's most important market for sheep meat taking 54% by volume and 63% by value of lamb and 53% by volume and 73% by value of mutton. Two thirds of mutton products are frozen boneless cuts - used for manufacturing purposes. The market differentiation of lamb product cuts is shown in the average price per kg of $2.00/kg for China and $10.90/kg for the US. The UK took 35% of frozen lamb carcasses exported and 15% of chilled carcasses.

Prices
The all grades average lamb price for year ended September 2002 was $70.70 per head (/hd), up 11% from $63.70/hd for the previous year. This reflects higher overseas meat returns and very favourable exchange rates.

Wool
New Zealand wool sales for the year ending June 2003 are estimated to fall by 4.1% to 167,000 tonnes clean, reflecting lower sheep numbers. Over the medium term, production is forecast to fall as sheep numbers continue to decline. China is the largest purchaser of New Zealand wool taking around 23% of total wool exports. The average auction price of New Zealand during the year ending June 2003 is estimated to be $547 c/kg clean. South Island merino wool averaged about $9.15 compared with strong wool (mainly romney) averaging $3.25 in 2002/03 ($/kg greasy net at farmgate).

Beef cattle
Most bulls and steers are finished at 18 - 24 months old on pasture at 270+ kg carcass weight (cwt). The meat predominantly goes to US and Asian markets. Heifers are finished at 200 - 250 kg cwt for the New Zealand market.

Beef cattle numbers in New Zealand have decreased by 0.6 million since 1994 to 4.5 million as at 30 June 2002. The North Island recorded a 14 percent decrease since 1994, while South Island numbers remain relatively unchanged. The Waikato region, which had the highest number of beef cattle in 1994 with 0.9 million, recorded a 23 percent decrease. The Manawatu-Wanganui region, which recorded a decrease of 12 percent since 1994, now has the most beef cattle with a total herd of 0.7 million. There are about 1.5 million beef cows with an average of 85% calving and an additional 580,000 calves are reared for beef from the dairy industry so over 2 million calves are reared annually.
Beef and veal production for the year ending September 2003 is estimated at 583,000 tonnes cw, up 12% over the previous year. The summer/autumn drought in 2003 led to an earlier kill than usual. Production is forecast to peak at 589,000 tonnes cw in 2004, and then fall to 545,000 tonnes cw in September year 2008, as beef cattle numbers decline and lighter weight cull dairy cows make up a larger proportion of the total kill. Export volumes for the year ended September 2003 are estimated at 478,000 tonnes cwe, and are projected to fall to 435,000 tonnes cwe by the year ending September 2008. About 110, 000 tonnes are used for the New Zealand market.

The US remains New Zealand's most important beef market. In the year ended September 2002, the US took 193,000 tonnes product weight (pw) (60% of New Zealand's exports), of which 129,000 tonnes pw comprised manufacturing beef and veal.

In the six months to March 2003, exports were up 30% to 196,000 tonnes pw on the same period last year, and reflects increased slaughter of cattle in the March quarter due to drier than average conditions over many parts of New Zealand.

Deer
Total deer numbers have increased by 0.4 million since 1994, to 1.6 million as at 30 June 2002.
Deer numbers in the South Island have increased by 70 percent from 0.6 million in 1994 to 1.0 million as at 30 June 2002. The South Island had 64 percent of New Zealand's deer as at 30 June 2002 . The Canterbury region has the highest deer numbers with 0.4 million,

New Zealand's position as the world's largest producer and exporter of farmed venison means that changes in production have a substantial impact on market returns. Around 90% of New Zealand's venison exports go to Europe, with Germany taking over 50% of total exports. Vension production for year ending June 2003 is estimated to be 28,080 tonnes, up 11% on the previous year.

Venison prices to New Zealand farmers were estimated at $8.07/kg for the year ended June 2002, while prices for the 2003 June year are estimated to almost halve to around $4.59/kg. Much of this fall is attributed to consumer resistance to the high venison prices, falling pork prices, increasing demand for beef as concerns over possible health risks from BSE diminish and a fall in private consumption expenditure, especially in Germany. Assuming no abrupt increase in New Zealand supply, venison prices (AP2 stags) are projected to recover from their current very low levels to $6.39/kg in year ended June 2008.

Velvet
As velveting stag numbers continue to grow so too will velvet production. New Zealand velvet returns are highly dependent on prices received in the ROK, where most of New Zealand's production is sold. Velvet prices have remained relatively steady during in June year 2003 due mainly to lower supplies following the ban on imports of Canadian velvet. This ban resulted from Korean concerns over chronic wasting disease affecting some Canadian Elk herds, which is now detected in some Korean deer.

Over the forecast period, returns from the ROK are expected to ease as supplies increase. Velvet prices depend on economic conditions in the ROK, international supply, and currency movements. The raising of consumer awareness of New Zealand velvet quality in the ROK should also help. Velvet prices to New Zealand farmers are estimated at $95/kg for year ending June 2003 and to decline in subsequent years with $80/kg projected for June year 2008.

Kiwifruit
The Bay of Plenty region continues to dominate kiwifruit growing in New Zealand, with a net planted area of 8,600 hectares as at 30 June 2002 - 72 percent of New Zealand's total. The region's net planted area of kiwifruit has increased by 6 percent since 1994, compared with a 2 percent decrease for New Zealand overall.

Wine grapes
The net area planted in wine grapes was 17,400 hectares as at 30 June 2002, with 56 percent of the net area planted being in the South Island.

The Nelson/Marlborough region continues to be New Zealand's largest wine grape growing region, with 7,500 hectares planted in wine grapes as at 30 June 2002. The Otago/Southland region has become New Zealand's fourth largest wine grape growing region behind Nelson/Marlborough, Hawkes Bay and Gisborne.

Avocados
As at 30 June 2002, the Northland and Bay of Plenty regions had 81 percent of New Zealand's 3,100 hectares net planted area of avocados. The net planted area in the Northland and Bay of Plenty regions has more than doubled since 1994 to reach a total of 2,500 hectares as at 30 June 2002.

Forestry
The area of planted production forest has increased by 26 percent since 1994 to 1.9 million hectares.

The Waikato region had the largest area of planted production forest with 0.3 million hectares as at 30 June 2002.

For the year ending 31 December 2001, the new area planted in production forest was 34,000 hectares. During the same period, the area replanted in production forest was 42,500 hectares.

During the year ending 31 December 2001, 20.4 million cubic metres of exotic timber were harvested from an area of 46,700 hectares. Exotic timber harvested from the North Island made up 77 % by volume of New Zealand's total harvest for the year.

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