Friday, March 29, 2024

Spring venison spike back

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The return of the spring peak in venison prices is not expected to reach the unprecedented highs of last year.
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Deer farmers are starting to see a return of the seasonal venison price increase that traditionally occurs each spring, Deer Industry New Zealand chief executive Dan Coup says. 

It follows an unusual 2017-18 season when venison prices climbed steadily from January 2017 before peaking in October last year. 

The return of the spring peak doesn’t come as a surprise but Coup hopes the peaks and troughs in the seasonal price curve will be less marked than in the past. 

That is because of the industry’s success in developing year-round markets for chilled venison.

“Last year was a real anomaly with late August schedule prices $2 a kilogram more than they are now. 

“This was partly driven by a gold-rush from United States pet food-grade products, which reached $6/kg – a level that couldn’t be sustained.” 

The average price for pet food grade products has since fallen to $3.50/kg. 

The average farmgate venison stag price in mid-August was $9.06/kg.

Putting the abnormal price hike of 2017-18 aside the price is about $1.50/kg ahead of where it was in the previous five seasons.

“As we move into September and October prices for venison animals for chilled season supply are expected to firm further by about $1/kg depending on the contract the farmer has with their venison marketer,” Coup said.

All things being equal marketers expect prices will ease again through November in the more normal seasonal price curve. 

Coup said markets and prices are unpredictable and, as with the pet food spike, sometimes obscure long-term drivers of demand. 

One of the most important of these, year-in year-out, is the spring market for chilled venison from Germany, Austria, Switzerland and elsewhere in northern Europe.

The price premiums paid for supply during this period normally make it worthwhile for some farmers to have stags ready for processing from August through to early November.

However, it is quite dependent on their farm system.

“For instance, whether the farm has early growth genetics, early pasture production or is likely to dry out early in the summer.”

One of the industry’s successes is that it has built a preference for NZ farm-raised venison in this premium market. 

In the past the European chilled market favoured feral or wild game and venison from other countries so maintaining supply is important for the industry’s long-term future.

“If there’s another gold-rush we will of course bank it but the main focus of marketing companies and DINZ is to maintain European chilled season demand while building year-round demand elsewhere,” Coup said.

The Cervena venison programme in North America has succeeded to the point where the US is now NZ’s largest chilled venison market.

That programme is now being expanded into Canada.

“In northern Europe, in the face of centuries of tradition, we are pioneering the sale of Cervena venison as a summer grilling item as part of our Primary Growth Partnership programme, Passion2Profit.”

Individual exporters, with DINZ support, have also developed useful markets such as Scandinavia. 

The premium pet food market remains a useful outlet for offals and manufacturing grades of venison.

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