Deer Industry New Zealand had agreed to support Yuhan Corporation in its plan to develop and market a product with proven health benefits based on NZ deer velvet.
In a world first, Yuhan’s objective was to successfully develop, register and market a health food product containing scientifically validated components of NZ deer velvet.
Yuhan chief executive Jung Hee Lee and DINZ chief executive Dan Coup signed a memorandum of understanding earlier this month.
NZ was chosen as the source of velvet because of the country’s transparency in its farming environment, animal welfare and the traceable and hygienic supply chain.
“We travel the world looking for ingredients that are produced in systems as close to nature as possible and where animals are treated with care,” Yuhan’s head of food and health marketing Ashley Kyung-in Chung said.
“That’s why we have come to NZ.
“Velvet from other countries does not have the same standards as NZ.”
Lee said in recent years a number of Korean companies had developed easy-to-consume formulations based on deer velvet and herbal ingredients they had marketed generically as health foods.
In this case Yuhan would be doing the research needed to make a legally valid claim that its ingredients had a health benefit.
To do that AgResearch and Yuhan scientists would be working together to build on existing scientific knowledge.
Lee said AgResearch was internationally recognised for its knowledge of velvet processing techniques, the composition of deer velvet and the potential health benefits.
Yuhan would invest a minimum $1.5 million on research with AgResearch and had budgeted for the substantial costs involved in registering a functional food claim and taking a product to market.
Coup said DINZ and Yuhan had a shared interest in the registration of NZ deer velvet as a functional health food.
“If this is achieved it will further strengthen the reputation of NZ deer velvet as a natural, safe and quality food ingredient in Korea,” Coup said.
DINZ would work with Yuhan to help promote the NZ velvet story and support the launch of its velvet products where appropriate.
The two parties might also co-fund some specific areas of research and marketing activities but they would be subject to separate agreements, Coup said.
As part of its market positioning Yuhan had also signed an agreement with Alpine Deer Group to use images and videos of one of Alpine’s high-country deer stations that would be one of the main sources of velvet.
