After a challenging period, demand set to lift as economies of New Zealand’s two main markets tick up 

Ahead of the upcoming selling season, prospects for velvet have improved.  

In early September PGG Wrightson National Deer and Velvet Manager Tony Cochrane visited the two main markets for New Zealand velvet, China and South Korea, where he witnessed a positive outlook.

“In both countries we detected a more upbeat feel among customers. Their economies are starting to improve, mainly in the tech space, where the likes of AI chips are selling exceptionally well, while consumer confidence and spending is starting to lift.”

After the increased mixed age stag cull last year, which reduced the national herd by over 20,000 stags, and recent currency movements more in our favour, wholesale demand is likely to grow. 

“Last year’s grading changes have also made a positive impact in the market in terms of product quality, compared to chasing share weight,” he says.

This season will start early. If prices reflect demand they will comfortably surpass last season’s levels, when returns proved uneconomic for many growers. 

“We are predicting added competition in the field from opportunist traders looking to profit from ‘cutting corners and locking in farmers.’ Similar competitors have driven prices down in the last two years, and thrive on price volatility, unlike those with longer term investment,” says Tony.

PGG Wrightson has maintained strong relationships with South Korean in-market buyers.

“They have direct links to consumers who are asking for more clarity and clinical analysis of their health products. With them, we are looking at new added value opportunities, applying science and technology to reinvigorate the South Korean health food market.”

In further positive news, New Zealand venison and velvet now has direct access to Vietnam. In the long-term Vietnam can become a strong third leg for the competitiveness of velvet, sitting alongside the more developed Chinese and South Korean markets.

Meanwhile December and January dates for annual stag and elk wapiti sire sales are almost fully confirmed. Check the PGG Wrightson Deer and Velvet website for details. 

Links to: 

https://www.pggwrightson.co.nz/our-services/livestock/deer-velvet