Economy
In the past several decades, manufacturing industries have expanded rapidly in New Zealand and their growth has contributed greatly to the nation's rising standard of living. About 20 per cent of the labor force is employed in manufacturing.
The processing of agricultural products is the largest industry in value of production. Among the chief goods are processed meats, wool, dairy goods, fruits, grains, and vegetables. Other light industries include the manufacturing of clothing, textiles, and foot-wear, household appliances, pulp and paper products, rubber goods, tobacco products, and plastics.
Heavy industries are less developed and, to a large extent, rely heavily on imported raw materials and supplies. Among these industries are those making chemicals and fertilizers, metal products, refined petroleum products, automobiles, and farm machinery. New Zealand's first steel mill was opened in the late 1960's, near Auckland.
Less than one-tenth of the nation's workers are farmers or ranchers, but more than half of the land area is used for agriculture—most of it for pasture-land. New Zealand is one of the world's largest producers and exporters of sheep and related products such as wool and meat. Dairying and the raising of cattle for meat. are also important.
Only about 2 per cent of the farmland is used for crops—mostly for animal feed Crops grown mainly for human consumption include wheat, oats, barley, and potatoes. Less important are corn and peas, fruits such as apples and peaches, tobacco, and hops.
The North Island is the major producer of beef cattle and dairy products, while the South Island is the chief crop-growing region. Sheep farming is fairly evenly distributed between both islands. Farming is heavily mechanized, and crop yields are high. Lowland farms typically range in size from 100 to 200 acres (40 to 80 hectares) while livestock stations (ranches) often cover 10,000 acres (4,000 hectares) or more.
There are numerous kinds of fish in inland waters and the surrounding seas. The fishing industry, however, is not highly developed, and supplies mainly the local market. The main catch is orange roughy, red cod, snapper, and shellfish such as oysters, mussels, and rock lobster.
New Zealand has a variety of minerals, but few occur in commercially usable quantities. Coal is the most important. Gold was the leading mineral by value for many years, but production has declined greatly since the 1950's. Crude petroleum, natural gas, and iron-bearing sand (used in the iron and steel industry) are produced in moderate amounts. The only other resources of importance are salt and various kinds of sands, clays, and stone. Untapped minerals of potential value include zinc, nickel, copper, uranium, molybdenum, and lead.
The forest industries are highly developed. Among the many products produced are timber, pulp, paper, and plywood.
The nation's system of roads and highways has grown dramatically in recent decades. Highways connect most cities and towns. Almost all of the railway system is government-owned; railways connect the larger cities and towns. The North and South Islands are connected by ferries linking Wellington with Picton.
Air New Zealand, which is privately owned, provides domestic and international air service. Several other international airlines connect New Zealand with major countries and with many Pacific islands. The main commercial airports are at Auckland, Wellington, and Christchurch.
More than 40 ports handle coastal and international trade. Almost all of the international trade passes through the largest ports—at Auckland, Wellington, and Lyttelton (serving Christchurch). Also important are Picton, Napier, and Tauranga. Inter-island passenger service is available at Wellington, Picton, and Lyttelton. Major products shipped from New Zealand are wool, meat, dairy goods, hides, and lumber products, including pulp and newsprint. Chief imports are raw materials such as iron, steel, aluminum, and fuels, and finished goods such as heavy machinery and motor vehicles.
New Zealand's main trading partners are Australia, Japan, and the United States. Other important partners include Great Britain, Germany, and South Korea.
