New Zealand wool boom
Encyclopedia
The New Zealand Wool Boom of 1951 was one of the greatest economic booms in the history of New Zealand
, and the direct result of US policy in the 1950–53 Korean War
.
In 1950, as a result of the Korean War
, the United States
sought to buy large quantities of wool to complete its strategic stockpiles. This led to the greatest wool boom in New Zealand's history, with prices tripling overnight. In 1951 New Zealand experienced economic growth such as has never been seen again since. The echoes of the boom reverberated into the late 1950s, by which time a record number of farms were in operation.
The export price of wool crashed by 40% in 1966, however New Zealand's sheep population continued to rise. From a total of 34.8 million in 1951, sheep numbers rose dramatically to peak at 70.3 million in 1982. However the subsequent free market
reforms of the Fourth Labour Government
, and the associated removal of agricultural subsidies, saw numbers decline even quicker than they had risen. By 2004 the national flock had dropped to a total of 39.3 million, the lowest in 50 years.
Recent years have seen the number increase again for the first time since 1982. New Zealand's sheep population stood at 40.1 million as of June 2006.
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, and the direct result of US policy in the 1950–53 Korean War
Korean War
The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...
.
In 1950, as a result of the Korean War
Korean War
The Korean War was a conventional war between South Korea, supported by the United Nations, and North Korea, supported by the People's Republic of China , with military material aid from the Soviet Union...
, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
sought to buy large quantities of wool to complete its strategic stockpiles. This led to the greatest wool boom in New Zealand's history, with prices tripling overnight. In 1951 New Zealand experienced economic growth such as has never been seen again since. The echoes of the boom reverberated into the late 1950s, by which time a record number of farms were in operation.
The export price of wool crashed by 40% in 1966, however New Zealand's sheep population continued to rise. From a total of 34.8 million in 1951, sheep numbers rose dramatically to peak at 70.3 million in 1982. However the subsequent free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
reforms of the Fourth Labour Government
Fourth Labour Government of New Zealand
The Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...
, and the associated removal of agricultural subsidies, saw numbers decline even quicker than they had risen. By 2004 the national flock had dropped to a total of 39.3 million, the lowest in 50 years.
Recent years have seen the number increase again for the first time since 1982. New Zealand's sheep population stood at 40.1 million as of June 2006.