Venison demand, prices drop
Deer farmers already struggling with dry conditions have been hit hard by the global hospitality shutdown, Taihape farmer Mark McCoard says.
Venison is exported to restaurants in Europe and the United States, but many businesses in the restaurant trade have closed because of the coronavirus pandemic, McCoard said.
‘‘We’ve had really dry conditions all year . . . and then Covid-19 on top of that. That’s had a major effect on venison because of the premium positioning of the cuts.’’
Stock sales were also shut down, which meant farmers had no avenue to sell or price weaners.
Online auctions could be an option but the infrastructure was not yet available, McCoard said.
Deer Industry New Zealand chief executive Innes Moffat said marketers of New Zealand farm-raised venison were now pushing to build sales through online outlets and gourmet retailers.
Nearly all of the country’s venison was sold for export and of that at least half went to food-service businesses, Moffat said. Major markets were Germany and the US, which normally each took about 25 per cent of New Zealand’s production.
Demand had also been growing from Scandinavia, the Netherlands,
Belgium and China, each taking about 10 per cent. That diversity would stand the industry in good stead as markets opened again, Moffat said.
‘‘All have customers who are convinced of the quality of our product and will readily buy it again when circumstances allow.’’
Rabobank animal protein analyst Blake Holgate said several seasons of strong returns had left venison farmers well positioned to overcome the severe trade downturn. Increased demand for venison in pet food had seen exports to the US and Europe increase over the last five years.
Exports to China had also grown rapidly last year.
But by March, export volumes to all markets were down 30 per cent from the same time last year, he said.
Prices had also taken a hit. The historical peak of $11.50 per kilogram had come in 2018, and the industry had been in a healthy position coming into this year. The current stag price was $7/kg, which was 20 per cent less than a year ago, he said. ‘‘Venison importers in key markets across North America, Europe and Asia are reporting a significant decline in demand from end-users for venison products and this has resulted in many importers cancelling or delaying their own incoming orders for venison.’’
China had banned the consumption of wild animals in January due to Covid-19, which originally included deer products.
This had since been reclassified as special livestock but confusion about its status could still result in meat being rejected once it arrived in China, Holgate said.
‘‘Exporters are seeking assurances that the exemption for deer is well understood and consistently applied across various Chinese regional authorities.’’ Holgate said considerably lower demand was likely in the next few months as consumer spending recovered, but a base level of demand from pet-food manufacturing would remain stable.
It was hoped the worst of Covid-19 disruptions would be over by the European autumn, which was an important sales window for New Zealand venison, he said.
‘‘If New Zealand can continue to contain the virus, this will also benefit ongoing venison sales by helping to position New Zealand as a reliable producer of safe food.’’