The average schedule price to farmers for a prime venison carcase was $9.67 a kilogram. That marginally exceeded the last price peak of $9.65 in October 2008.
At that peak the Euro was about 25% (€46c v €60c) stronger relative to the Kiwi dollar than it was today. The United States dollar was 20% (US59c v US72c) stronger.
“This means that export prices for NZ venison are substantially higher in euros and US dollars than they probably have ever been,” Coup said.
When venison schedule prices had approached the $10 mark in the past they had usually eased back the following season, as happened in 2009 when the spring peak fell to about $8.75.
Coup said that was the result of a variety of factors including the onset of the global financial crisis and its effect on the euro.
The market dynamics were quite different this time, Coup said.
“Overall, supply is down by nearly 40% compared to 2009 and a much smaller proportion of it is being sold into the European game trade.
“The shortage of venison animals means there is a procurement premium being paid by exporters in their prices to farmers but that’s only part of the reason for higher prices.”
The success of venison exporters in developing a market for processing grade NZ venison in North America had raised the value of the whole deer carcase.
“What they have done is to move this quality product from the traditional European game meat market, where it was a reasonably easily substituted ingredient, into North America where it is recognised as a specialty meat for use in gourmet burgers and ready-to-eat protein bars,” Coup said.
Another growing source of demand from North America was for venison offal and trim for the ultra-premium pet food market, which was providing a significant premium compared to what had been available in the past.
Coup said the growth in year-round demand for chilled cuts and the step change in the value of processing grade venison were likely to have a lasting, positive influence on the value of a venison carcase.
Silver Fern Farms chief executive Dean Hamilton said the outlook for the coming season was positive as venison markets remained very strong.
That was largely the result of the lower supply out of NZ.
Market prices in Europe and the US remained up on last year and new premium trim markets in the US were adding to the overall value being realised.
“We see a continuation of these current market conditions,” Hamilton said.
