Deer Industry New Zealand (DINZ) has reported confidence in the future profitability of venison and velvet production flowing through to the market for sire stags, confirming strong sales throughout the country.
With the Red deer sire stag sales complete, most breeders were reporting a marked improvement on last year’s results with average prices up strongly for most sales, several by more than 50%.
Overall sale clearance rates were 94% compared with 83% last year, with several breeders having sold all animals on offer.
Another feature this season was the inaugural sales for two new entrants to the sire breeding business – Forest Road Farm in Central Hawke’s Bay and Rupert Red Deer in South Canterbury.
Both specialise in breeding for velvet antler, a sector that had enjoyed growth and good prices over the past several years.
Sires for venison production with high breeding values (BVs) for growth rate had attracted good demand.
Ruapehu Red Deer in the central North Island breeds venison sires selected on 12-month weight BVs and enjoyed a total clearance with an average price of almost $7000, up nearly one-third on last season.
Peel Forest Estate in South Canterbury also had a good sale for its Forrester maternal venison sires, selling 49 of the 50 on offer, averaging about $7500, up 20% on last year.
Signs were also promising for sales of elk-wapiti sires with their selling season currently under way.
On January 15, Lochinvar stud at Te Anau sold all 25 Wapiti bulls on offer at an average $5400, 10% up on last year, while Manapouri’s Connemara Wapiti also had a buoyant sale, with a total clearance and prices up 46%.
Meanwhile, prices offered for deer by venison marketers remained at record levels, adding to high levels of confidence in the industry, DINZ Passion 2 Profit manager Innes Moffat said.
“With consistently strong venison and velvet prices the industry is in a confident mood.”
Innes Moffat
DINZ
Venison prices traditionally peak each year in October before the last chilled shipments leave for Europe for the annual game meat season, October to Christmas.
This season, schedule prices to deer farmers had continued to rise into January with the published average now about $10.30/kg, fetching up to $10.70 in the South Island.
Moffat said the drivers in the market remained unchanged from last year.
“Namely, lower production in NZ, successful diversification by marketers into new year-round markets, and very strong demand for venison from the United States, both for grilling cuts and manufacturing grades.”
Marketers had reported an excellent European game season with good clearance rates despite higher prices.
“Marketers and distributors are now discussing their supply contracts for the year ahead, with price inevitably high on the agenda as some distributors voice concern about their ability to pass on the current high prices for frozen venison,” Moffat said.
Interim figures for the year ended December 31, 2017, revealed that females had dropped below 48% of the total slaughter, a good indication that the national hind breeding herd was being rebuilt, putting an end to a gradual decline that began in 2005.
Moffat said the lower female slaughter rates reflected anecdotal feedback from farmers, some of whom said they were increasing the area they had fenced for deer.
DINZ was also receiving a few requests for information from new farmers entering the industry.
“With consistently strong venison and velvet prices the industry is in a confident mood.”
Confirmed slaughter figures to the end of October showed the deer kill was 288,000, down 8% on the previous year.
Actual venison production was 16.5 million kilograms, down only 5.5%, reflecting higher growth rates and a trend to take animals through to heavier weights.
DINZ expected this trend to continue if summer and autumn venison prices remained strong relative to chilled season prices.
DINZ Asia market manager Rhys Griffiths said demand for velvet from the two main markets, Korea and China, has been strong this season.
Prices have climbed back to levels reached two seasons ago before changes in Chinese hygiene regulations led to a loss of buyer confidence unrelated to the long-term demand for NZ velvet.
“Total velvet exports reached $43m in the 2015-16 season, increasing to $59m in the 2016-17 season,” Griffiths said.
“With a lift in the velvet price and the forecast increase in production, another increase in the value of velvet exports is expected this season.”
