Korean Ginseng Corp, the number one heath food brand, had entered into a larger and longer-term contract that offered opportunity for many larger clients to get involved, PGG Wrightson national velvet manager Tony Cochrane said.
Spiker value ranged from $118-$180, SAH $139 (> 3kg), SA, A and B grades $101 to $135, damaged $90 to $115 and manufacturing $30 to $180.
The Chinese government’s new, regulated control scheme meant onfarm deer sheds and freezers had been given full attention to meet new hygiene regulations.
An important factor was also the Velvet Status Declaration (VSD).
“VSD forms are now compulsory with each consignment and to be filled out and signed by the farmer.
“As a means of traceability the Deer Industry New Zealand tag numbers or series of numbers from start to finish must be recorded,” he said.
Famers, PGW and DINZ had last month hosted staff from Lotte home shopping and associated companies in Hawke’s Bay.
Cochrane said filming from the visit would be used for commercials alongside products that promoted NZ velvet to Korean consumers.
DINZ Asia market manager Rhys Griffiths said the improved opening was underpinned by growing demand with the price recovery timely given the investment many farmers were making in upgrades to their velvet facilities.
“Regulatory changes in China last season led to a loss of buyer confidence and a dip in prices that did not reflect the steady growth in demand for NZ velvet from China and Korea, our major markets,” Griffiths said.
“Overall, demand was such that some buyers who held off making their purchases in the belief that prices would fall further nearly missed out on supply.
“Lesson learned, Korean and Chinese companies are now actively buying to ensure they get the velvet they need.”
DINZ estimated production would reach 675 tonnes this season, up slightly on last season.
“This increase will be needed to meet growing demand for velvet as an ingredient in health foods in Korea, which we estimate accounts for 150 tonnes of velvet a year.
“Health food products are bringing in new consumers. It’s not just a case of velvet consumers moving from a traditional to a more modern form of product, Griffiths said.
The growing consumer demand was also attracting more large manufacturers, all of whom were seeking NZ velvet for new health food products of their own.
Some were also using the NZ velvet quality mark prominently on their packaging and mass media advertising.
Griffiths said it was an important industry goal to encourage the development of a market for NZ velvet-based healthy functional food products in China.
“This market has the potential to be huge. Chinese healthy functional food companies are strong and in some cases bigger than their Korean health food counterparts.
