China has changed its rules for imported velvet used in Traditional Chinese Medicine (TCM). From next May, velvet exports to China will have to be dried instead of frozen which has historically been the method of velvet exports.
The change only applies to exports to China. Frozen velvet exports to other markets will continue. Seddon-based deer farmer and NZ Deer Farmers Association Chair Justin Stevens says. It’s early days so it is hard to know at this stage how this will impact velvet farmers.
“Either way China has set the deadline of April 30th, so velvet exporters need to think about shipping dates and timeframes,” Justin says.
Justin got involved in deer farming in the late 1980s and has expanded his operation to run around 400 deer which produce around 2,000 kilos of frozen velvet per season. He says that back in the 1990’s the Nelson, Tasman, and Marlborough regions had around 600 deer farmers, nowadays it’s down to about 70.
“Deer farmers need to stick together and that’s where the Deer Farmers Association is there to look after the farmer’s interest and represent the deer farmers of New Zealand and give up to date industry info,” he says.
The Ministry for Primary Industries (MPI) and the Deer Industry New Zealand (DINZ) are working with Chinese authorities to clarify the future rules for frozen velvet and are aiming to get longer-term solutions agreed to enable the continued growth of the velvet trade with China for both, frozen and dried deer velvet. DINZ says that the change China has made won’t affect overall market conditions, including growing demand for NZ velvet but it does mean the New Zealand velvet export industry will need to adjust, and the industry has time to do this.
“The real challenge for deer farmers currently is cashflow, high input prices, and lower commodity prices, which is nothing we haven’t seen before but makes it challenging,” Justin says.
“Amongst it all there are lots of opportunities for the industry and with DINZ working closely with MPI, processors and exporters we have a good chance that we can continue to grow the industry.”
