.jpg) A shipment of wool being loaded in Wellington, in the mid-1960s | |
| Duration | 1951 - 1960 |
|---|---|
| Type | Historic economic event |
| Cause | Resulted from the 1950-1953 Korean War |
The New Zealand wool boom of 1951, one of the greatest economic booms in the history of New Zealand, resulted directly from United States policy in the 1950–53 Korean War.
In 1950, when the Korean War broke out, the United States of America 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.[1] In 1951 New Zealand experienced economic growth never seen again since.[2] The echoes of the boom reverberated into the late 1950s, by which time a record number of farms were in operation.[3]
The export price of wool declined by 40% in 1966,[4] 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.[5] However the subsequent free-market reforms of the Fourth Labour Government (in office: 1984–1990), 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,[6] the lowest in 50 years.
Recent years have seen[update] sheep numbers increase again for the first time since 1982. New Zealand's sheep population stood at 40.1 million as of June 2006[update].[7]
- ^ New Zealand History Online: Impact of the War – NZ in the Korean War, Accessed 5 April 2018
- ^ John McDermott, Motu Public Policy Seminar Series: The Evolution of the New Zealand Business Cycle: Returning to a Golden Age? Archived 28 September 2007 at the Wayback Machine, 17 March 2005
- ^ Professor Tom Brooking, The Evolution of the New Zealand Business Cycle: Returning to a Golden Age? Archived 28 September 2007 at the Wayback Machine, RM Update, Issue 18, 18 April 2006
- ^ Te Ara Encyclopedia, The European economy: a history, Accessed 29 May 2007
- ^ Stats NZ, Agricultural Production Statistics to 2002 Archived 27 September 2007 at the Wayback Machine
- ^ Stats NZ, Agricultural Production Statistics (Final) (June 2004) – Media Release Archived 4 March 2016 at the Wayback Machine
- ^ Stats NZ, Agricultural Production Statistics (Final) Archived 12 June 2007 at the Wayback Machine
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