Friday, March 29, 2024

Korean demand spiking early

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Before the launch of the velvet cutting season talk among velvet traders was that prices may be up. Velvet buyer Graeme Hawker of Hawker Deer buys velvet from growers across the South Island.
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He said speculation on stronger prices for farmers has become a reality with initial buyers quoting $125-$130/kg for the traditional Korean mix. This is 15% up on the previous season’s initial price of $110/kg which, in turn, was 5% up on the year before.

“There is strong demand with a good base of buyers, although some Korean buyers are showing apprehension at the prices.”

Although the velvet trade season was still warming up as of late October, Hawker said that he had sales at the higher price already.

However, some buyers were holding off at the early stages because of the price, he said. Korean buyers were important to keeping the market balanced with Chinese buyers.

“We really value the tradition of supplying Korea and long may it continue.”

Like the previous season, more Super A velvet is being cut. As a trend, the traditional Korean mix of Super A, A Short and B Short is becoming more heavily weighted towards Super A in the mix.

Hawker, together with son Nathan who runs the partnership company Hawker Velvet, are the main buyers of elk-wapiti velvet in New Zealand. Hawker is optimistic for a price lift for this type as well.

“We should replicate the price lift seen for Red deer traditional Korean mix,” he said.

Quality was really important with elkwapiti velvet and, if in doubt, should be cut shorter.

Nathan Hawker visited Korean velvet buyers in May and October. He said they see NZ velvet as the best, the pinnacle in fact. 

He is concerned what might result if the Koreans were not in the market and the Chinese were the sole purchasers of velvet: “We must keep competition in the market.”

A free-trade agreement with Korea would help, he said, because Koreans currently have to pay a significant tax on velvet purchases.

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