Offering achieves 100 per cent clearance and a 24 per cent increase on last season
Judging by the reaction of buyers at a December stag sale in Taihape, deer farmers are not discouraged by the drop in international demand for venison that has occurred due to much of the global hospitality sector having to lock down during the pandemic.
Paul Hughes of Ruapehu Red Deer offered 38 lots in a sale that achieved a 100 per cent clearance, a top price of $12,500 and an average of $7,026, up from $5,679 at the corresponding 2019 sale.
Interest in the sale was expanded nationwide, the offering going out via online platform bidr. Three stags sold via the bidr live-stream, along with numerous online bids throughout the sale. An enthusiastic local gallery attended in person, securing the balance of purchases.
Farmers are still anxious to obtain premium genetics. Paul Hughes has some of the best available, and the market is not veering away from spending money on quality sires. Buyers know that having the best genetics in their herds will put them on the front foot when international demand for venison revives.
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.
Deer join sheep and beef on innovative programme aiming to improve farm cashflow
PGG Wrightson’s Go-Stock, which has placed over $300 million worth of livestock with farmers over the past five years, comprising 1.2 million lambs and 200,000 cattle, has now extended to deer.
Deer farmers are now able to use Go-Deer to manage cashflow around stock procurement. PGG Wrightson buys the stock and retains ownership, meaning no initial cash outlay for farmers. Farmers then graze and grow the stock before deciding, in conjunction with PGG Wrightson, when and where to sell them. PGG Wrightson pays any resulting positive trading margin to the farmer, less fees and selling costs.
Meanwhile, Go-Beef will come into focus over the coming weeks at weaner and calf sales throughout the country. If you want to use Go Beef at these sales, talk to your PGG Wrightson Livestock representative.