New Zealand wool boom  The New Zealand Wool Boom of 1951, one of the greatest economic booms in the history of New Zealand, resulted directly from United States policy in the 1950–53 Korean War. In 1950, when the Korean War broke out, the United States of America sought to buy large quantities of wool to complete its strategic stockpiles. This led to the greatest wool boom in New Zealand's history, with prices tripling overnight. In 1951 New Zealand experienced economic growth never seen again since. The echoes of the boom reverberated into the late 1950s, by which time a record number of farms were in operation. The export price of wool declined by 40% in 1966, however New Zealand's sheep population continued to rise. From a total of 34.8 million in 1951, sheep numbers rose dramatically to peak at 70.3 million in 1982. However the subsequent free-market reforms of the Fourth Labour Government (in office: 1984-1990), and the associated removal of agricultural subsidies saw numbers decline even quicker than they had risen. By 2004 the national flock had dropped to a total of 39.3 million, the lowest in 50 years. Stats NZ, Agricultural Production Statistics (Final)