Deer industry to focus on productivity

Productivity for profitability is the emphasis of the deer industry for the year ahead. One of the bright spots in farming at present, despite the recession, venison has provided the top returns of all almost all traditional farming options over the last year reports Stuff. Returns are consistent and have shown steady growth in the last two years while markets have been expanding over the last five years. More recently a fall in supply has been driving demand and procurement, which has in turn buffered markets as demand for some venison items come under pressure. Deer industry leaders urge caution about the coming year as the global recession continues to impact, particularly on the European restaurant trade, but at the same time say the figures demonstrate a solid underlying long-term confidence in venison farming, says DINZ's producer manager Tony Pearse. According to a gross margin analysis by Southland farm consultant Graham Butcher, rating current relative profitability across all major NZ farm enterprises, the most profitable land use options for 2009 are the high powered early chilled season venison finishing enterprise, followed by typical Southland summer lamb trading, then all other venison production options. Returns on early chilled season venison finishing enterprise in June, for instance, was 25.2c/kilogram dry matter (kg DM) consumed, assuming peak season average prices at $9.00/kg. This analysis, based on a Southland model but applicable NZ -wide, is established on a realistic schedule price.There are clear signs at the annual Deer Industry Focus Farm field days held over August that NZ deer farmers are focusing on productivity to build on current returns, through adjusting systems to produce more calves, heavier calves and to bring slaughter times forward to supply the crucial pre-Christmas venison demand. The key sponsor of the Central Region's Deer Industry Focus Farm is chilled venison supplier Firstlight Foods.  Director Gerard Hickey says while it's clear the food service industry is feeling the full brunt of the recession, there is always going to be a market for high quality meat, and venison is well poised to take advantage of that. Firstlight Foods, based in Hastings, manages an integrated supply chain, which directly links venison farming suppliers with the end customer. Mr Hickey told deer farmers at the Central Region field day business belt- tightening has meant less people eating out during the week on their company expense accounts, and consequently a drop in venison demand in the European and American restaurant markets, which is likely to last until at least the end of this year.