The agricultural industry is narrowly specialized in New Zealand. It doesn’t cover so many fields as compared with other highly developed countries. Dairy cattle and sheep breeding is the main occupation of NZ farmers. It is no surprise that the big part of the territory of the country is used in agriculture. Specifically, about 60% of all the lands are used by farmers. The remaining 40% of lands are located in the mountainous regions of the country and can not be used either for agriculture or dairy farming. The territories that are privately owned by farmers are better in quality and are used for breeding highly productive meats and dairy cattle.
Farming in the Country
Nowadays, NZ has a reputation of a highly efficient producer of agricultural and dairy products in the world. Owing to the reforms of the 1980s, the structure of agriculture has been formed in the country. On the top of that, the lack of subsidies has increased the competitiveness of local dairy and meat producers, which enabled them to effectively compete on the world dairy market. Apart from big production scales the country provides, NZ often speaks at international economic forums and advocates the financial support of the government for the agro-industrial branches in other nations.
The agricultural industry in NZ is export-oriented. The main goods distributed all over the world are meat, wool, and dairy products. A significant part of the proceeds is obtained through the export of meat, specifically lamb and beef, while 90-95% of dairy products are exported in the form of butter, cheese, milk, milk powder, etc.
Agriculture in the Country
On the territory of New Zealand, wheat, barley, oats, corn, potatoes, peas are grown. With the exception of potatoes, all crops are grown on the southern part of the country. What is more, NZ provides local customers with wheat and produces sufficient amount of fruits and vegetables to meet domestic demand. The East Coast, Hawks Bay and Martinborough areas on the North Island and Marlborough in the South are the vineyards, where most New Zealand wines are produced. Many businesses realize the importance of this industry and support it. The list is long: FMCG Companies, Bank Industry even Online Casinos and of course the government.
Government Control over the Industry
The Ministry of Agriculture and Forestry is the institutional body that carries out control over the state and development of the agro-industrial sector of NZ. However, the control of this ministry is not restrictive since agriculture in NZ is developing based on the principles of a free economy. Alternatives to price intervention are the mechanisms of social support. In particular, the country authorities use a mechanism of targeted assistance to farmers affected by cyclical loss of income dues to natural disasters. Another form of assistance to agriculture is the assistance in conducting research aimed at developing farms, modernizing the infrastructure, and introducing new technologies. This mechanism allowed NZ farmers to modernize production facilities and introduce energy-saving technologies.