“It’s been a complicated season and disappointing for some deer farmers despite the demand.” Says Claire Parkes, a deer farmer from Wakefield. The Korean food market contracts, for velvet, filled up quite early on this season and once filled the market dropped off significantly, due to economic uncertainty in China, impacting some farmers to the point they received around $10 a kilo less for their velvet. Another impact to the season was increased input costs that have gone up around 15% and for some essentials, such as fuel and fertilizer a whopping 25%.
“The venison market took a big hit with covid in 2020 and we have still not gotten back to pre-Covid price levels. Many restaurants that closed over that period haven’t opened up again and that is still impacting.” Claire says. The deer industry has been very proactive in diversifying markets which has been a positive outcome and hopefully bodes well for the future of venison.
Following on from last season’s increase in demand for deer velvet, to South Korean health companies, the sector looks to be moving into a period of stability as demands keeps up with the increased volumes. 2021-22 season farm gate returns were $123 million, up 25% from the previous year and industry experts are expecting another 5% increase this season which has just come to an end.
Korea’s younger people are turning to natural health products, and this is driving market growth. “Last year there were around 32 new velvet products launched on the Korean market.” Says Claire. In the past Korea has used our velvet mainly in tablet form mixed with Ginseng, an herb meant to be rich in antioxidants. Now velvet is available in many forms excluding Ginseng, which is proving to be popular, and is a common component in health tonics. “If you think of a milk shake bar but its healthy tonics, you can walk in and dial up what you want, velvet is a very popular product in these tonics.” Explains Claire. These tonics are in demand and there are recommended health supplements for things such as pregnancy, anti-fatigue and immune support.
Claire has just attended the Deer Farmers Conference which moved venues, due to flooding, from Hawkes Bay to Ashburton. “It’s always great to see other positive people at the conference, and to nut things through in the industry,” Claire explains “Farmers have been hit pretty hard with unreasonable regulations, it’s good to come together and to know you’re not the only one thinking or feeling a certain way.”
Claire says “Stag numbers now look sustainable when comparing it with market demand. The New Zealand story around velvet is special and our velvet is in demand, there are still challenges thrown at us, but the good news is that there is increasing demand in the healthy and functional food market and overall, the long-term prospects look reasonably good.”
