Friday, March 29, 2024

Venison marketers taste success

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Strong demand for New Zealand venison has pushed spring prices to a five-year high.
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Coupled with low stocks in Europe and successful market diversification, prices were partially offsetting the impact of the strengthening NZ dollar on farmer returns, Deer Industry NZ (DINZ) venison marketing manager Marianne Wilson said. 

While some importers were nervous about how the market would react to the price rise, others were confident, buoyed by the knowledge NZ venison production was down about 25% on last year.

Some exporters had indicated a return to the usual throughput levels in October and November as yearling stags reached target slaughter weights and the European game season gained full momentum.

The average stag schedule price at $8.83 a kilogram was now at a five-year high, up from $8.56 the corresponding time last year. 

That compared with a 10-year average of $8.21 for the third week in September.

Several exporters had issued long-term contracts for spring supply at agreed prices.

At NZ65c to the Euro, the Kiwi dollar had firmed by about 17% on the corresponding time last year and was 30% stronger than it was in 2008 when the venison schedule reached the 10-year September high of $9.41.

The reduction in supply to Europe was not only because of falling venison production. It also reflected the success of exporters, in-market partners and DINZ in building year-round demand outside the European game season, Wilson said.

“In the last few years there has been a steady growth in year-round venison sales to North America to the point where it is now our largest chilled market and a major market for processing venison. 

“This is strategically important to the industry because it makes us less reliant on sales in euros,” she said.

There was also promising growth in some emerging markets, including China.

While the high prices were underpinned by the low supply, NZ production was expected to be low for at least another year as herds were rebuilt.

That meant market prices should remain well supported through the year, according to the latest AgriHQ Livestock Insight report.

National venison production for August was down 25% compared to August 2015, with total production in the 12 months to August down 15% on the previous year.

Venison farmgate prices, both spot and contract, reflected the positive market conditions with printed schedules 6% above last year’s levels and 12% above the five-year average.

Contract prices were also well up on historical levels and were being offered for a longer than in previous years.  

The high dollar against both the euro and the greenback was a limiting factor for exporters and venison prices might reflect the currency pressure once the peak Christmas sales period was over, the report said.

Meanwhile, Cervena continued to make progress in Europe.

The second year of the three-year summer trial promotion in Belgium and the Netherlands had further increased sales. It was a partnership between DINZ and marketers Silver Fern Farms, Alliance and First Light Foods.

DINZ Passion2Profit manager Innes Moffat said sales figures and feedback from distributors and chefs would be analysed this month.

The feedback would be used to fine-tune promotions in the trial’s third year.

“The concept of eating venison as a summer grilling item is still quite novel in Europe so it generates quite a lot of discussion among chefs and foodies.”

The final sales figures would be a very important measure of the trial’s success.

 “But arguably more important will be the feedback we get from everyone involved because that will help us understand which messages and marketing tactics generate the most sales,” he said.

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