PGGW, NZ's biggest rural services company, and Tasman Velvet Processors agreed to set up a joint venture to market the deer product into key markets in Asia reports Scoop. NZ Velvet Marketing Co. will market about two-thirds of NZ's velvet sales into China and South Korea, where it is used as a medicinal tonic in traditional therapies. "Producers have been galvanised by low velvet prices in recent years to create structure to drive industry reform," Chris Taylor, director of Tasman Velvet, said in a statement. "The key element missing has been a link to a proven marketing company." The new company will mirror marketing developments in other rural products, such as the fine wool industry. Ownership of NZ Velvet Marketing will be split between Wrightson, Tasman Velvet and farmers. Wrightson shares fell about 2% to NZ$1.50 and have tumbled almost 45% in the past three months.
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