Velvet prices favour the patient and the firm

Velvet prices favour the patient and the firm
Farmers are advised to be patient and disciplined when negotiating sale prices for their deer antler velvet. "Farmers accepting $55-60 a kilo from road buyers are doing themselves, other deer farmers and overseas customers, no favours at all," says Velexco GM Ross Chambers. "Current market prices are 20-30% above that level. But they will be sustained only if the product is released gradually onto the market by strong sellers." He says forward buying power has waned and now gone from the spot velvet market entirely. Farmers, he says, need to adapt to this new reality and be stronger sellers.   NZ production is expected to decline 420 tonnes this season and this has been noted by buyers. Velexco is also hearing anecdotal reports from China that velveting herds there are being slaughtered because of dramatic increases in feed costs," he says. "For these reasons, farmers should be looking for better prices this season than last. But they will only achieve them if they sell their velvet through someone who is willing to phase the release of the product onto the market over several months.

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