The latest national livestock survey has shown sheep numbers are now at an 80 year low - with strong demand for mutton from China and the relentless increase in dairy farming both contributing to the continuing decline in sheep numbers.
Beef + Lamb New Zealand said the last time New Zealand had 29.8 million sheep was in the 1930s - but it said that if you focus too hard on that figure you'll miss the real story.
Beef + Lamb New Zealand economic service chief economist Andrew Burtt said while overall sheep numbers were falling as farmers responded to market signals - the reality was the industry was doing a whole lot better with a whole lot less.
Mr Burtt said farmers were producing nearly twice as much lamb per ewe as farmers were 25 years ago.
He said better farming systems and improved genetics meant productivity in the sector had vastly improved over the last several decades - including the quality of the meat, lamb weights and lambing percentages.
