“We can see the past 12 months as a win for years of ongoing work. It’s been a great team effort and we are happy to have a good year in the industry,” Deer Industry New Zealand chairman Ian Walker told more than 200 people at the annual conference in Timaru.
“But while we have made progress there are a lot of work-ons and challenges ahead to keep tackling.
“We have made good, solid, measurable progress in terms of industry goals – now it’s about staying ahead of the game.”
Walker cited the Government as one of the challenges on the horizon.
“With a new Government and an increasing urban voting base it’s going to get more challenging.
“As an industry we are going to have a lot more to do in environmental stewardship that will be critical to maintain that social alliance.”
Maintaining market premium placements is another crucial challenge.
“We are seeing some good gains for the industry but we will need to increase investment through P2P, invest more into farmers – more investment in boots on the ground to help environmental stewardship.”
Rabobank analyst Blake Holgate said NZ agriculture had generally experienced a good year but farmers should spend the proceeds wisely.
“NZ agriculture is very much deciding where it wants to go at the moment – low-cost, nimble producer or high-value, niche market seeker.”
Duncan NZ marketing manager Glenn Tyrrell said venison prices are at historic highs and fully priced and the downside risk is low.
“What we are seeing today is reward for 30 years of long-term investment, particularly the growth in the United States market.
“There’s been a constant evolution of product, quality, customers, markets and marketing.”
Venison should continue to outperform all other dryland livestock farming options.
“This is $4/kg higher than lambs, which is also well priced, and we believe it is a sustainable situation.
The US economy is strong with consumers having developed a desire for natural, grass-fed proteins with little competition for professionally farmed deer.
“What we are seeing today is the reward for long-term investment with the US now the number one venison market,” Tyrrell said.
Velvet is also recording strong demand and prices driven by the maturity of the Korean market and growth in China.
DINZ market manager Rhys Griffiths said $30 million worth of velvet was exported to China this season and the timing is right to promote NZ velvet and improve confidence in its use.
“Keeping ahead of the game will be about strengthening our premium position, diversifying markets through strategic partnerships.
“These strategic partnerships give a connection of the brand to consumers.
“A new market established in the past year is now consuming 25% of NZ velvet. We are now sending 720 tonnes to South Korea. Before, it was 450t.”
Velvet exports have more than doubled from $30m in 2014 to $70m in 2018.
In future, the new Regulatory Control Scheme (RCS) providing a pathway to China will play a big part.
“The timing is right now to improve the confidence of these influential Chinese companies and what you do as farmers on your farm matters to RCS,” Griffiths said.
