Venison, velvet prices pleasing farmers

Velvet production is outstripping most other livestock enterprises and those in the know say prices are sustainable.

The nation's deer farmers are enjoying their day in the sun with both venison and velvet prices well on the up.

Other livestock operations would struggle to match the per-hectare returns of velvet, with the average price of $125 a kilogram this season, and some even going for as high as $186/kg. Venison sits around the $7.10/kg mark.

Taihape Deer Farmers branch chairman Andrew Peters said the real beauty of the situation is that these prices are sustainable as farmers rebuild herd numbers.

"At the Taihape weaner sales [a month ago] stag and hind weaner prices were up by 33 per cent over the previous year with strong demand for weaner hinds," Mr Peters said.

"This demand indicates farmers are rebuilding their breeding herds after deer numbers had dwindled to probably 10-year lows. It would be fair to say no other livestock farming could match velvet production returns per hectare at present."

The low numbers prompted Deer Industry NZ to increase the levy on venison to help fund the P2P (Passion 2 Profit) initiative and to continue the other work done for deer farmers and venison marketers.

The levy rise, the first in a decade, is set at 1.5c/kg each for farmers and processors who share the costs. P2P is supported by all five exporters and is in its second year of Cervena trials in Europe.

The dwindling numbers had reduced the levy take by $300,000 and needed to be addressed.

Mr Peters said the Europe remained the main venison market, although the United States was extremely strong, but not taking the largest volumes.

"Venison is doing very well and the prices are definitely sustainable on the proviso the meat companies don't stuff it up for us. Global demand is extremely strong and exceeding supply, so as long as the meat companies behave and do things right we can all enjoy continued good returns," Mr Peters said.

Asia remains New Zealand's major velvet market as the health benefits become more popular.

Velvet has long been a popular health product in Asia, although did have a rather notorious, but incorrect, reputation as just an aphrodisiac.

Asians use velvet as part of an array of vitamin supplements.

In any event, deer farming looks a profitable enterprise for some years to come.