South Canterbury deer farmer and former New Zealand Deer Farmers’ Association (NZDFA) chairman Kris Orange said finishers were looking for greater numbers of weaners this year.
In Canterbury that was prompted by a phenomenal growth season with heaps of feed around and people making twice as much balage as they needed.
But price was also a significant factor of the renewed confidence in deer farming.
There had been a couple of processors this month offering contracts at $8 to $8.40 a kilogram from now until the end of winter.
“We have not had something like that in concrete at this time of year before and one could imagine when we get into the chilled season that will rise a bit from here too,” Orange said.
“Effectively it’s taken the troughs out which has increased demand but also renewed confidence in the industry when two and three years ago we were at just $6 to $6.40/kg.
“This $8 mark now will make a huge difference to farmer’s returns and the decisions they will make come autumn, particularly when culling hinds.”
Orange said there was less product in the market and coupled with the cream coming off dairy grazing and lamb finishing options, weaner deer were understandably in greater demand.
“The deer industry is at a really strong point and confidence has also shown out in buying sire stags this season. Sales have been quite strong.
“I am damn sure it’s a confidence factor where farmers see the benefits of putting money into their business given where the price is at,” Orange said.
While there wasn’t much sign of people buying weaner females for breeding given the national herd rebuild, sales of in-fawn hinds had been up, which was another indication of confidence in the industry.
Elders livestock agent Derek Mickleson said several factors were underpinning the market including the shortage of stock when venison prices were strong, as well as a decline in the number of dairy heifers available for grazing.
“People who have been doing dairy support and have deer fencing are looking again at venison finishing as a profitable option,” Mickleson said.
The most demand for weaners in the South Island was likely to come from bigger, well established properties rather than new entrants to the industry, PGG Wrightson NZ deer manager Graham Kinsman said.
Strong venison prices would continue to support demand for weaners but there would be a natural ceiling on prices.
“If you pay too much you won’t make any money,” he said.
PGG Wrightson deer agent Robert Auld expected demand at the Taihape weaner sales in April to be strong though that could be tempered if the dry spell in parts of central North Island evolved into a drought.
“Two years ago it was hard to sell weaner hinds,” Auld said.
Now demand for female weaners as replacements to build up breeding herds was likely to help support prices, however, most of the weaners for sale at Taihape were hybrids bred for finishing, he said.
The industry reported the rate of people exiting the deer industry had fallen with herds that were being sold generally because the farm was being sold.
