Last week I caught up with Innes Moffat the CEO of Deer Industry New Zealand, to get his views on the current start of play in the deer industry. What is clear is the impact of Covid-19 on venison prices in 2020 and 2021 laid bare the industry’s reliance on restaurant consumption. While prices are now on the path to recovery, prices are still no where near where they need to be or indeed where they were pre pandemic.
Innes says if there is a silver lining through this pandemic it has been the opportunity to build new markets. Retail and on-line sales of venison in North America expanded rapidly in 2021 from a low base and China has become our third largest venison market. Venison marketing companies have also enjoyed success in markets as diverse as Sweden and the United Arab Emirates.
Innes says, “we need venison prices to improve significantly. Demand from the rebounding food service sector will help with that, but the challenge for marketers will be to make sure the prices being achieved in these new markets will provide a sustainable return for deer farmers in the years to come.”
“Demand for velvet has also been influenced by Covid-19. Retail lockdowns in our main markets have disrupted sales to consumers, but there’s no better time than the middle of a pandemic to be selling a product that is known for its health giving properties.”
Events and regional workshops, velvet competitions, and stag sales are integral parts part of the social glue that binds the deer industry together, this is of course true right across all farming communities and the wider industry. “Unfortunately under Covid there have been much fewer events that bring people together. Sure, we have become used to communicating on Zoom and other platforms, but nothing beats a real face-to-face.”
Innes’ prediction for 2022 are ongoing issues with shipping and freight affecting the ability to get product to their international markets; more Covid disruption globally as new variants emerge and spread, but a growing ability for businesses everywhere to reopen and operate as normally as possible, regardless of the pandemic.
Expect venison prices to steadily recover and velvet prices to stay on track.
Globally, fiscal stimulus measures are likely to be quickly unwound to get inflation back into the bottle – with consequences for consumer spending and the speculative highs that we are seeing for energy and some food products.
Over the next few weeks I will be taking a deeper look into the various elements and systems that make up deer farming in New Zealand, there will be a particular focus on the farming system itself and how deer integrate with Sheep and Beef, and how venison and velvet fit into both traditional international markets and domestic. Click on the link above to hear the full story with Innes
Listen to the podcast to get the full story and full perspectives.
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Angus Kebbell is the Producer at Tailwind Media. You can contact him here.
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