Abstract:
The study is arranged in three parts: an introduction which covers the wider economics and historical background to the industry; the second, the interpretation of official and other statistics, and station accounts; and the third, putting pastoralism into its colonial economic setting.
The material examined suggests that two distinct periods exist during the time studied; the first of stock-raising and the second of run consolidation. In the first period capital outlays were low and working cost relatively high, whilst assets grew as stock multiplied and prices were good for wool and stock. Profits therefore were good. In the second period capital outlays rose substantially as land was freeholded and improvements were made. Costs rose, although working costs fell slightly as fencing and other facilities were put in. Returns from wool were good until after 1873 when prices began to fall steadily, althouqh declining receipts were offset for some years by increased output per sheep. Stock prices fell sharply in the late 1860's considerably reducing income from sales. The cost of production rose, whilst receipts tended to fall, reducing profits. Considerable capital gains were made from appreciations in land values during the period.
The industry's growth during its first phase was rapid. High profits were made while flocks were free to multiply on under-stocked natural pasturage. Once the original pasturage was fully stocked further growth was dependent on increasing carrying capacity by sowing pasture which was costly and long-term in its benefits. The profitability of such growth was marginal and further expansion of the industry proceeded at a slow rate.
