In New Zealand, the structure of livestock is changing: the sheep population is decreasing, while cattle is growing.

According to current industry research covering approximately 500 commercial farms, as of June 2025, there were 22.7 million sheep and 3.96 million head of beef cattle in New Zealand. Organization head Kate Acland noted that for producers, the 2025–2026 season was generally favorable due to good pasture growth during summer and autumn, which contributed to livestock condition, as well as rising product prices. At the same time, farmers faced high costs for inputs and purchased livestock, which put pressure on business margins.

A decline in sheep numbers is observed across the country. In the North Island, the flock decreased by 3%, with the most significant drop of 6.3% in the Northland, Waikato, and Bay of Plenty regions. The number of breeding ewes nationwide decreased by 1.9% (to 14.15 million head), and young stock (ewe lambs) by 4.5% (to 7.67 million head). Despite the reduction in breeding stock, the forecast for the number of offspring remains stable at about 19.75 million lambs, which is due to an estimated lambing percentage of 132.3%.

In the beef cattle sector, a third consecutive wave of growth is being observed. Cattle numbers reached 3.96 million head, which is the highest figure in a decade. The growth affected both islands: in the North Island, the herd increased by 3.2%, and in the South Island by 3.6%. Specifically, in Southland, the population grew by 6.7%, which is attributed to an increase in the number of weaners and growth in livestock trading at feedlots.

According to Kate Acland, the current changes reflect a structural shift in land use and livestock farming that has been taking place for a long time. Since 2000–2001, the total sheep population in the country has decreased by 46%. The long-term decline in sheep farming is linked to the conversion of land for forestry purposes, urbanization, the conversion of farms to dairy, as well as farmers' decisions regarding changes in specialization and the economic efficiency of different types of livestock.