New coalition for velvet export to China aiming to create opportunities to build profitability

Compared to venison, velvet continues to bear good news for the deer industry, due to greater consumption in South Korea and China than anticipated. A recent forecast indicated China’s economy will grow eight per cent in the coming year, compared to Europe, destination for most New Zealand venison, where the economy is set to retract seven per cent.

Deer farmers have welcomed income from velvet, opting to sell stock early, albeit prices are 15 to 20 per cent lower than last year, balanced by a positive outlook for the coming season. Logistical issues, including a three month freight delay caused by lockdowns in China’s north east regions, where most velvet enters the country, appear to be resolved.

PGG Wrightson has joined a coalition to develop a market for New Zealand velvet as a health food ingredient in China.

Working with two other New Zealand companies that export velvet to China, plus DINZ, NZTE and PCNZ, a China-registered company that represents several New Zealand food and beverage product marketers in China, the new coalition recently employed a business development manager in Shanghai, who will  approach Chinese brand-name companies willing to develop and promote products based on New Zealand velvet.

Capturing more value from velvet is the objective, providing more certainty for farmers looking to build on-farm production.

Growth in China indicates huge potential for New Zealand velvet in health food products. Collaboration should enable accelerated progress.

In South Korea meanwhile, consumption is better than forecast, reinforced by the recent release of new products containing New Zealand velvet that target older consumers and women.

PGG Wrightson will continue to run velvet sales until mid-April.

Tony Cochrane, PGG Wrightson National Velvet Manager