Venison prices at record high
Venison prices are at historically high levels and are fully priced, but the downside risk is low, says Duncan NZ marketing manager Glenn Tyrrell.
Tyrrell said farmers were asking him why the (South Island) venison schedule was $11 a kilogram and whether it was going to last.
‘‘It’s eight or nine factors, not just one factor, so venison should continue to outperform all other dryland livestock farming options,’’ he told the national deer industry conference in Timaru. ‘‘There may be a shock to one or two of those, but not enough to make a dramatic change.
‘‘This is $4/kg higher than lamb, which is also well priced, and we believe it is a sustainable situation.’’
A return of the traditional spring premium to supply the European chilled game market was also expected, after prices unexpectedly lifted this season.
‘‘November was when the new prices for pet food came in and those were two to three year contracts in most cases, so a one-off. That trade was a big jump.
‘‘Last year, we saw a significant reduction in the amount of deer supplied in September and October, so farmers had already made the decision to undersupply that chilled market,’’ said Tyrrell.
Alliance Group export sales manager Terry O’Connell said there was a downside risk in prices if too much stock was supplied after the premium spring market.
‘‘We still have to supply the chilled game market to keep the balance, post-game season.’’
Tyrrell said a 30-year investment in venison marketing was paying dividends.
‘‘These things don’t happen overnight.
‘‘There’s been a constant evolution of product, quality, customers, markets and marketing.’’
The Cervena marketing programme started in the United States 25 years ago. The US economy was strong with consumers developing a desire for natural, grass-fed proteins.
Although the US had a strong deer hunting tradition, there was little domestic competition. New Zealand had 30 per cent less venison production in the last three years which had allowed the industry to be more selective where it sold.
‘‘We are able to select the best customers who are able to deliver the best value back to us.’’
‘‘This is $4/kg higher than lamb, which is also well priced, and we believe it is a sustainable situation.’’
Glenn Tyrrell