Nelson Region

Nelson exemplifies how geographic advantages compound into industrial clustering. With 2,500 hours of annual sunshine—New Zealand's highest—the region produces 100% of the country's commercial hops, a crop requiring long daylight hours and mild temperatures. This same microclimate drew settlers in 1842 to establish hop farms that continue today, creating path dependence so strong that craft brewing has clustered around the historic advantage: eleven breweries now operate in a region of 55,000 people.

The 'big five' industries—seafood, horticulture, forestry, farming, and tourism—all exploit the convergence of climate and coast. Port Nelson processes more seafood than any other facility in Australasia, supporting major processing plants and the Cawthron Institute's aquaculture research. The port handles 67% exports to 33% imports, moving forestry products, seafood, apples (28% of the national crop), and Marlborough wine through its facilities. This diversification across complementary industries creates the portfolio effect ecologists observe in stable ecosystems: when one sector weakens, others provide stability.

The region's consistent performance—top of the ASB Regional Economic Scoreboard for consecutive quarters—reflects this diversification strategy. Unlike monoculture wine regions facing demand volatility, Nelson's economy distributes risk across sectors connected by shared infrastructure: the same port serves fishing vessels, log ships, and wine containers. The sunshine that grows hops also draws tourists, and the same mild climate that supports orchards enables year-round port operations.