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With a Herding Sheepdog dog like a Border Collie, the dog’s natural prey instinct of chasing has been modified to chase or herd under the direction of a Shepherd, who is the dog’s master. So Herding Sheepdogs work from outside the flock, causing the livestock to bunch together in order to protect themselves from the dog.
Examples of Herding Sheepdogs are Border Collies, Collies (Smooth and Rough), Bearded Collie, Hungarian Puli and Shetland Sheepdog. The latter is interesting as all the animals on the Shetland Islands are small, for example the horse - Shetland ponies and even their sheeep. So it is logical they sould develop also a small 'Collie'.
The Australian Kelpie was initially developed in the late 1800's as to work on Australia's sheep stations which had expanded into wide open spaces. See notes scribbled by Robert Kaleski. Today this lithe active supple dog is never weak, so is capable of untiring work with his natural instinct to work sheep as a Herding Sheepdog.