An insult hurled at new zealanders, by australians mostly. it is a reference to the sheep prominence in new zealand- ten sheep to every person. sheep cant breed that fast on their own, so the "sheep shaggers" help
Kiwi: we fucked you aussie's up in the rugby union!!
Any person from wales, new zealand and especially Derby. Any derby county fan is a sheep shagger. They like making love to those wooly bastards.
Used mainly by Nottingham Forest fans agaist the derby sheep shag scum.