At June 1999 there were 45.2 million sheep and 4.6 million beef cattle in New Zealand - 12 sheep and 1.2 cattle for every New Zealander. This statistical average, however, masks the wide range of farm types and systems that vary according to land type, topography, climate, scale and farmer preference. The majority of farms have both sheep and beef cattle, which complement each other in pasture- based grazing systems.
Some farms also run deer or have arable crops.
This diversification reduces the business risk associated with a single enterprise. All sheep and beef farms are run on low input pasture grazing systems, sometimes supplemented with hay, silage and fodder cropping. This low cost system enables New Zealand farmers to supply high quality pasture-fed meat and wool to world markets at competitive prices. There are a number of other companies that process for the local market only, and several smaller exporters. This represents only about 5 percent of world production, but 75 percent of world trade.