Large volumes transact as growers hold firm and withstand market pressure to secure pay off for their commitment to value.

After a slow start due to high stocks in market and low-priced activity by opportunist traders, uncertainty in the velvet market was resolved in late December. Large volumes of all grades transacted, setting the scene for velvet sales at competitive levels in the New Year.

Along with many deer farmers, PGG Wrightson had held back velvet in the preceding period, not accepting the low prices offered. This steadfast commitment to value has paid off, and the market is now re-engaged. PGG Wrightson will advise pricing early in January.

Farmers are now cutting velvet earlier and rounder, aligning to recent grading changes after mounting market signals relating to share weight over quality product. Red deer classes at velvet competitions have embraced these signals to date. Prior to the season, all New Zealand velvet sellers were engaged in grading discussions, alongside NZDFA members. 

Beyond this season, due to farmers taking advantage of good venison prices, culling significant numbers of velvet stags, and cutting shorter, production is predicted to drop. This will potentially reduce New Zealand velvet tonnage by more than 200 tons. With expected economic growth in our main velvet export markets China and South Korea, and particularly if further progress can be consolidated in the emerging Vietnam market, velvet values should therefore rise in the seasons ahead.
 

Let's talk! Contact your local Deer Specialist to explore opportunities tailored to your farming goals.