Deer numbers have fallen to levels last seen in 1994 as the sector continues to feel the fallout from record prices earlier this decade.The latest available census, done in 2008, showed a herd of 1.2 million reports The ODT. The kill this year was forecast to fall below 400,000, compared with a peak a few years ago of 750,000. Deer Industry New Zealand (DINZ) chief executive Mark O’Connor attributed the decline to farmers killing capital stock as venison prices fell, a situation from which the industry had yet to recover.

He believed there was a rebalancing occurring in the industry, and those farmers who remained carrying larger numbers of animals would be more productive. DINZ chairman John Scurr, of Wanaka, said the forecast kill was lower than the board would like, but that was a factor of supply and demand which was beyond its control. The sector had been hit by changing land use, and much of its traditional finishing country was now being used for dairying. That meant deer herds were being pushed into the high country foothills. This was despite deer farming being financially competitive with lamb finishing and wool and dairy grazing, he said.

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Weaner deer prices at early season sales are back a little on last year but that is no bad thing, say sector leaders. “Generally speaking things are heading in the right direction,” says Deer Industry NZ (DINZ) chief executive Mark O’Connor. Tight supply is maintaining in market prices despite the economic downturn but a stronger kiwi dollar – or more accurately weak Euro – has taken the shine off schedules here reports The Rural News.

“Our main markets are still in Europe so the Euro [weakness] is a challenge for us,” says O’Connor. “Things might be a little slower than last year but supply has dropped and our marketing continues unabated.” That said, frozen sales in recent months have been “at a reasonable level” which augurs well for the coming chill season. “We want to see a reasonable level of stability in the market and here in New Zealand. It’s important weaner prices are reasonable and offer a profit for breeders and there’s still a return in it for finishers.” The $6/kg plus prices of top end weaners last autumn were “way too high”, he adds.

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Farmers in the temperamental velvet industry could soon find more financial stability if the value of antlers remains stable.  After a dismal two years of velvet sales, the market has bounced back to an export price of $100 a kg, up from $50 a kg in 2007 reports The Southland Times.  New Zealand Velvet Marketing marketer John Smith said the industry was sensitive to supply and demand trends, and had been dramatically affected by fluctuations in the supply of velvet in the past 25 years.

To try to stablise the industry, New Zealand Velvet Marketing had been marketing New Zealand’s velvet to South Korea and China for the past year, which it hoped would increase the export price and bring farmers a good return for their velvet, Mr Smith said. Good marketing combined with a small supply of velvet, as the number of deer farmers decreased, should mean more stability for the industry, he said.

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The treatment of wounds using a unique deer velvet product will be tested on humans thanks to an investment by AgResearch, DINZand their joint venture company VARNZ Ltd. The product, “RepaiRx”, has emerged from an ongoing research programme between DINZ and AgResearch to study the unique properties of deer velvet reports Straight Furrow. “If trials are successful we will seek commercialisation of what could be a significant breakthrough in treatment of some types of chronic wounds,” said Dr Jimmy Suttie, Science and Technology general manager of AgResearch’s Applied Biotechnologies Group.

“While any benefits of this work are some time away there is real potential for alleviating human suffering. This is a great example of where industry and science have worked in true partnership to develop the product and are now continuing with that collaborative effort to get the product to the next stage”. DINZ CEO, Mark O’Connor said “the objective is to generate a significant return from an investment in RepaiRx, for deer farmers, for the industry and for people with medical issues.  “Currently deer velvet’s main market is in Asia and if this venture is successful it will increase demand, increase prices and open up new markets for the product.”

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Deer Industry NZ will need to substantially increase its levies within the next few years if it is to retain its current structure reports The Rural News. That’s the view of Stephan Borland, Waikato branch chairman of the NZ Deer Farmers Association, who says DINZ has grown too big on the back of a venison bubble in 2002 and it needs to look at right-sizing. ‘When DINZ was set up it was a good move to have all aspects of the industry under one umbrella. But we were processing 750,000 carcasses a year and the levies from that supported an organisation the size of DINZ.

‘That figure has now dropped to around 400,000 a year – so I don’t think there is enough revenue to support the current structure.‘When the reserve fund runs out in two years’ time there won’t be the money there to sustain the organisation. I’m also concerned that a lot of money is spent on things that don’t have a measurable return.’ DINZ chief executive Mark O’Connor is confident his organisation is on the right track and says it always looks at what it is doing.

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