Velvet prices hammer venison sales

Record velvet prices and high farmer confidence in the deer industry have caused a chronic shortage of venison for the export market.

Slaughter numbers from January to August are down 14 per cent, with the average carcass weight unchanged at 52.8kg, and production has slumped to 1998 figures.

It is the second successive year that venison production numbers have decreased and acute supply shortages in the winter have for some exporters spilled over into the chilled meat season.

Game Industry Board chairman Clive Jermy has warned it is a losing situation. "Orders are being shorted, customers are unhappy, exporters are unhappy and it is likely some farmers without contracts are going to miss the good prices currently on offer," Mr Jermy said.

"For importers, the problem is being worsened by rising prices - driven by short supply - not being offset from the weak New Zealand dollar."

The fall in slaughter numbers could be attributed to well-founded confidence in the deer industry that had seen hinds increase by at least 10 per cent.

The price of velvet last season meant there were also more rising two-year stags being carried through for velveting.

"This explanation is, however, of little comfort to venison importers trying to meet their customers' needs ... It is a travesty if premium chilled orders are unfilled and customers are not satisfied," Mr Jermy said.

The board would continue discussions with exporters to try to find ways of preventing the "extraordinary" situation that had dominated the past two seasons in an effort to minimise the problem.

The deer industry was in good shape for the future but changes were needed to find a long-term win-win situation for importers, exporters and suppliers.

"These may be in the form of perhaps slaughtering some stock earlier than may be preferred or using physical rather than chemical restraint for velveting," he said.

"If we are not prepared to make these changes, increasingly our competitors very likely will, and the competitive advantage this industry has developed will be eroded."

Mr Jermy also warned that velvet was unlikely to continue rising at the sometimes triple-price rate of the past year or so.

"Nothing is certain in the velvet trade, except that rapidly increasing velvet production here will result in an equally rapid reduction in price."

- NZPA