The weaner deer market slumped and pregnant hinds were sent for processing so breeders could keep virtually worthless weaners while some deer farmers even turned to beef as an option.
The question now – is there a better way for the weaner market system?
Mandy and Jerry Bell of Criffel Station near Wanaka buy large numbers of weaners for finishing each year.
Mandy Bell said in Deer Industry News the system for capturing value fairly for breeders, finishers and processors throughout the chain is broken.
The dramatic impact of covid-19 on the venison market this year exposed inherent defects in the system that can arbitrarily reward or punish people when venison markets fluctuate.
The disruptions to the world economy and the deer industry’s markets provide an ideal opportunity for a complete rethink of the breeder-finisher-processor model.
She is not happy with the status quo and is putting pressure on all parties, including agents, to get around the table to develop mechanisms that will fairly share both risk and reward.
Venison processing and marketing companies must also be a part of the mix.
Following the support of Alliance with a spring price indication Bell was interested in a shared risk arrangement where breeders and finishers could both share the upside if prices improve.
Of the 13 suppliers she approached just three breeders were prepared to enter an agreement that spread risk and reward.
It was a start and at least the $6-$8 a kilogram framework provided by Alliance set a platform for negotiation.
Bell wants breeders to get a better handle on their true costs of production so more transparent agreements can be made.
She urged Deer Industry NZ to collaborate with key stakeholders, share messaging and not leave it for the market to define the outcome.
“Culling hinds or changing policy to finishing beef is not positive for our industry,” Bell said.
South Canterbury breeder Kris Orange said there was a definite slowing in weaner trade in the South Island this season.
The first of the weaners sold straight off their mothers in early March made about $5/kg liveweight.
“This was a bit down on last year but sellers were pretty happy,” Orange said.
But things quickly went south as the impact of covid-19 and feed shortages took their toll with prices down to $4 by the end of March and post-rut weaned animals went for $3-$3.50 by the end of May.
There are other reports of prices as low as $2.50.
Dry conditions compounded problems with finishers electing to take fewer weaners than usual while many breeders opted to hang on to weaners rather than sell at unsustainable prices.
“A lot of pregnant hinds were sent to the works to make room for retained weaners that would otherwise have been sold store.
“That’s a real shame,” Orange said.
