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Venison production shows healthy gross margins

Rural News
Venison production shows healthy gross margins

Some venison enterprises are offering the best returns for investment in NZ at present reports Deer Industry NZ. A comprehensive Gross Margin analysis comparing relative profitability across all major NZ farm enterprises, produced by Southland farm consultant Graham Butcher from Rural Solutions, shows returns from finishing purchased weaner deer, topped farming options. Finishing weaner deer returned 22.64 cents/kg/DM, compared to 11.90 cents for a Southland dairy farm conversion, 15.10 cents from an existing Southland dairy unit, and 13.68 cents for bull beef rearing. His in-depth breakdown has produced some revealing data on the best options for land use in the region at this point in time, challenging perceptions on farming investment The most profitable land use options are finishing weaner deer, followed by summer and winter lamb trading, then bull beef rearing ahead of all dairy enterprises, then finally breeding cows and ewe enterprise options. The returns from dairy farming are likely to be lower than many would expect, but the analysis has taken into account all of the direct expenses associated with each enterprise type to truly compare bottom lines. "The reality is that it takes more grass to graze dairy heifers relative to the returns." "For example, farmers will likely increase pasture production by converting an existing sheep, beef or deer farm to dairying. But if the farm is capable of growing substantially more grass, they should sit down and look at how that extra drymatter can be best used." "It may be that utilising existing deer fences and restocking provides the returns farmers will be looking for in the current economic climate."

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