The authors aimed to provide an accurate estimate of the prevalence of iron deficiency (ID) in New Zealand children aged 6 to 23 months. Subjects were identified from a random, ethnically stratified sample. Children with 2 or more of the following abnormal values were considered to have ID: serum ferritin (< 10 μg/L); iron saturation (< 10%); mean cell volume (< 73 fl). Overall prevalence of ID was 14% (95% CI 9 to 17%). There were significant associations between ID and ethnicity (Mäori 20%, Pacific 17%, other 27%, New Zealand European 7%, p = 0.005). Social deprivation did not predict ID. Multivariate analysis found a correlation between ID and BMI > 18.5 kg/m2 (RR 4.34, 95% CI 1.08 to10.67) and with receiving no infant or follow-on formula (RR 3.60, 95% CI 1.56–6.49). Children at increased risk of ID include those with more rapid growth, and those who receive milk other than infant or follow-on formula. These results suggest that cultural practices may influence iron status.