What is New Zealand’s competitive advantage – efficient farming or customer value?

Abstract

For most of the last century New Zealand led the world in efficient agricultural production. This began in the late 1800s with exports of wool, meat and dairy products, and relied on a competitive advantage based on this country’s unique resources and capabilities. The availability of low cost land with a small population enabled New Zealand to produce a large food surplus for export to the world. A temperate maritime climate, freedom from animal and plant diseases, skilled and innovative farmers, combined with investment in farm management research enabled this country to out-compete local producers in nearly every market it had access to. By the 1950s, New Zealand had one of the highest standards of living in the world.