New Zealand's sheep industry is facing significant challenges, with the sheep flock not expected to recover to pre-drought levels due to drought and land use conversion into forestry. Beef + Lamb New Zealand's (B+LNZ) annual Stock Number Survey shows a notable decline in both sheep and cattle numbers as of 30 June 2024. The drought has led to farmers destocking, impacting lamb production, and causing a anticipated decrease in the lamb crop. While sheep numbers may not fully recover, beef cattle numbers may do so more quickly due to strong beef prices and farmers switching from sheep to cattle. The declining stock numbers have far-reaching economic and social implications.