Nicola Johnston | February 23, 2021 from GlobalHQ on Vimeo.
Five applications for contestable funding were received by DINZ for a project that would support the development of a new market for venison in China.
DINZ chief executive Inness Moffat says all the applications were of a high standard, but an external review panel determined that the SFF proposal was the one most likely to benefit the wider industry.
It was also deemed the one that would have the greatest impact in China.
The $450,000 new venison market development project will be funded 50:50 by DINZ and SFF.
The $225,000 DINZ grant is funded from reserves in response to major disruption to venison markets caused by the impact of covid-19 on hospitality businesses.
DINZ also allocates $400,000 each year to company venison promotions that meet the criteria for joint promotion.
Moffat says the projects that were unsuccessful in their applications for the contestable fund are eligible for joint promotion funding.
Covid has severely disrupted sales of premium venison cuts normally sold to high-end restaurants in Northern Europe and North America, many of which have closed their doors or are operating at greatly reduced capacity.
China is now NZ’s third largest market for venison by value and volume, behind Germany and the United States at first and second.
“China is still a developing market with limited experience with venison cuisine importers,” he said.
“Supported by NZ marketers and DINZ, it is continuing to develop new butchery techniques, cuts and cuisines for venison that appeal to Chinese tastes.”
SFF welcomes both the funding and independent endorsement of the company’s marketing strategy, group marketing manager Nicola Johnston says.
“It reinforces the strength and content of the SFF’s venison recovery and growth strategy,” Johnston said.
“It also recognises the unique value of our company’s infrastructure of China-approved processing plants.”
The funding will support projects that are above and beyond the activity SFF has already initiated in China.
New projects will involve customer and consumer insight, new product development, customer usage, education and promotion.
“We are excited to see what traction these additional projects can provide,” she said.
Meanwhile, despite covid disruptions, total venison export volumes were up in 2020, albeit at lower prices.
Average venison prices fell by 17% as marketers moved products to channels and markets that would not normally be able to compete with foodservice for supply.
This reduced the build of inventory in NZ and provided the cashflow to pay farmers for their deer.
While restaurant closures and a near absence of tourists in Europe and North America put a damper on returns to farmers, on the positive side lower prices have been a lubricant for sales.
