Christchurch - Economy

Economy

The agricultural industry has always been the economic core of Christchurch. The city has long had industry based on the surrounding farming country. PGG Wrightson, New Zealand's leading agribusiness, is based in Christchurch. Its local roots go back to Pyne Gould Guinness, an old stock and station agency serving the South Island. That firm helped take deer farming techniques abroad. PGG Wrightson's overseas diversification includes dairy farming in Uruguay.

Other agribusinesses in Christchurch have included malting, seed development and dressing, wool and meat processing, and small biotechnology operations using by-products from meat works.

Dairying has grown strongly in the surrounding areas with high world prices for milk products and the use of irrigation to lift grass growth on dry land. With its higher labour use this has helped stop declines in rural population. Many cropping and sheep farms have been converted to dairying. Conversions have been by agribusiness companies as well as by farmers, many of whom have moved south from North Island dairying strongholds such as Taranaki and the Waikato.

Cropping has always been important in the surrounding countryside. Wheat and barley and various strains of clover and other grasses for seed exporting have been the main crops. These have all created processing businesses in Christchurch.

In recent years, regional agriculture has diversified, with a thriving wine industry springing up at Waipara, and beginnings of new horticulture industries such as olive production and processing. Deer farming has led to new processing using antlers for Asian medicine and aphrodisiacs. The high quality local wine in particular has increased the appeal of Canterbury and Christchurch to tourists.

In earlier years, Christchurch was one of the two heavy-engineering centres of New Zealand, with firms such as Anderson's making steel work for bridges, tunnels, and hydro-electric dams in the early days of infrastructure work. Now manufacturing is mainly of light products and the key market is Australia, with firms such as those pioneered by the Stewart family among the larger employers.

Before clothing manufacture largely moved to Asia, Christchurch was the centre of the New Zealand clothing industry, with firms such as LWR Industries. The firms that remain mostly design and market, and manufacture in Asia. The city also had five footwear manufacturers, but these have been replaced by imports.

In the last few decades, technology-based industries have sprung up in Christchurch. Angus Tait founded Tait Electronics, a mobile-radio manufacturer, and other firms spun off from this, such as Dennis Chapman's Swichtec. Tait proteges include Chapman. In software, Gil Simpson founded LINC, which became Jade.

However, there have been spin-offs from the electrical department of the University of Canterbury engineering school. These included Pulse Data, which became Human Ware ( making reading devices and computers for blind people and those with limited vision) and CES Communications (encryption). The Pulse Data founders had moved from the Canterbury University engineering school to work for Wormald Inc. when they set up Pulse Data through a management buyout of their division.

In recent times, the University of Canterbury engineering school and computer science department play an important role in supplying staff and research for the technology industries, and the Christchurch Polytechnic Institute of Technology provides a flow of trained technicians and engineers. Similarly, nearby Lincoln University has played an important role in Christchurch agribusiness.

Tourism is also a significant factor of the local economy. The close proximity of the ski-fields and other attractions of the Southern Alps, and hotels, a casino, and an airport that meet international standards make Christchurch a stopover destination for many tourists. The city is popular with Japanese tourists, with signage around Cathedral Square in Japanese.