The Government says it will work hard to implement a deal enabling a big chunk of New Zealand’s $120 million deer velvet export business to resume this year.
Without the deal, New Zealand deer farmers could have been left in limbo.
Officials from the Ministry for Primary Industries and state agricultural authorities in China have hammered out an agreement to restore the trade, but the pact awaits ratification in Beijing and Wellington.
It needs to be ready for the first shipments of velvet which are scheduled for late November.
The Minister of Trade, Todd McClay, is optimistic.
“I understand it is a different process from needing parliamentary assent, so we do believe that exports should commence in time for the season, but I have asked officials to double check that for me.”
McClay adds he is hopeful that there will be no bureaucratic delay in China to implementing the agreement. .
“I don’t expect there will be, now that we have negotiated and reached agreement in good faith.”
Earlier this year, China decided it would require velvet exports from New Zealand to be transported in dried form. Previously, New Zealand had exported its product frozen, and the change to dried product would have required the installation of expensive and energy-hungry drying plants.
“The agreement sets up a protocol that enables the export or importation of both frozen and/or dried velvet, so it’s for both,” says the chief executive of Deer Industry NZ, Rhys Griffiths.
“It’s awesome, and we are so thankful for both governments in terms of the negotiations and the good faith they have shown.
“We’re just waiting for things to get across the line, I’ll breathe easier once we get things ratified by both governments.”
Well over half of New Zealand’s deer velvet is sold to China, with the rest going mainly to South Korea. But much of the product sold to China is processed there and re-sold to Korea, so maintaining sales to China will help preserve the Korean market as an ultimate destination for New Zealand.
Deer velvet is used in traditional Chinese medicine for treatment of the immune system, circulation problems, joint pains and fatigue, and more recently has focused on prostate issues.
It is very expensive, earning about $120 per kilogramme in export markets.
Griffiths says he is feeling optimistic about the process.
“We are right on the cusp of the new season, and all the indicators are pointing in the right direction.”
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