Thursday, March 28, 2024

Velvet up, venison down

Avatar photo
Velvet exports for March were up while venison exports were down, telling two different stories for the deer industry.
Reading Time: 2 minutes

While is too early to do a wrap on the velvet season, exports to South Korea in March were very healthy, Deer Industry New Zealand marketing manager Rhys Griffiths said.

Velvet exports in March were $10.8 million, up on March 2019 at $6.7m.

But exports for the year ending March 31 at $58m are back $4m on the $62m of the previous year.

The 2019-20 season was later than the previous year and the figures reflect that, Griffiths said.

“What they don’t reflect is any disruption caused by covid-19 at both ends of the supply chain. Maybe we will see that when April figures come out.”

On the other hand, venison figures clearly show the early impact of covid-19.

With reduced processing capacity March slaughter fell 8% on the corresponding time last year with exports for the month at 1319 tonnes, down 30% on 2019.

The United States was the most affected market taking just 218 tonnes, down 55% on March 2019.

Exports to Switzerland and the Netherlands dropped from 100 tonnes in March 2019 to virtually zero this March.

Dinz chief executive Innes Moffat said venison companies have provided some clarity on the state of the market and given guidance for future prices.

The biggest hit in schedules has come from Silver Fern Farms dropping $2 a kilogram, bringing the price paid into the $5 range. Alliance dropped 50 cents off its schedule.

This time last year venison schedules were at $9/kg.

Moffat said venison marketers stress the situation is temporary while waiting for the world’s restaurants to reopen.

“We expect more news in the weeks ahead and while we may not like the news it’s better to have a degree of certainty to help with planning the difficult months ahead.” 

The pace with which restaurants reopen over the next phase of the covid-19 pandemic will determine the volume of venison they will order, Moffat said.

“Only three months ago we were looking forward to a solid year with good prospects in a broad spread of markets.

“Now we are being hit by an unimaginable series of events – a global pandemic, African swine fever and access disruptions in China, a fragmented approach to dealing with the crisis in the US and a drought and feed deficits across much of the country.”

However, there is confidence once the disruptions are managed those markets will again want NZ venison.

“For us what is vitally important is that NZ venison processors have committed to continue processing as we go into winter.”

All the venison companies are developing alternative channels – small goods for retail, home delivery and an increased focus towards online sales.

Total
0
Shares
People are also reading