New Record For Deer Industry Exports

7/20/2001

The Game Industry Board announced record export earnings this week, reflecting exceptional market conditions and the result of long term company and industry programmes aimed at extending the consumption season for venison past the traditional European game season.

Game Industry Board Chairman, Clive Jermy announced that total deer industry exports for the year ended May 2001 reached a record level of NZFOB$291.8 million – up 36% on the previous year. Venison exports were valued at a new record level of $226.2 million (up 44%), velvet exports were valued at $36.4 million (up 9%), co-product exports were down slightly at $13.5 million with hides and leather export earnings up 43% to $15.6 million.

The main reason for improved venison export returns is reported as being the continuation of strong demand for venison past the traditional end of the European game season – partly due to BSE and Foot and Mouth Disease in Europe. From the start of January till the end of May venison exports earned $112.7 million – up 93% on the same period last year.

"However, the gains the industry has experienced also reflects the collaboration of all exporters and their in-market partners to work to promote New Zealand Venison as part of the industry’s European demand creation programme, now 2 years old" said Mr Jermy.

Strong venison export results are also reflected in farmgate returns. "At approximately $9.20, the published average schedule is at an all-time record level, up more than 40% compared to the same time last year and we are still several weeks away from the traditional peak season. This reflects the strong market for venison, and also the extended period of demand beyond the traditional game season which has resulted in stock levels significantly below levels usually seen at this time of year." said MJ Loza, Game Industry Board CEO.

Production has risen in response to the strong market. Slaughter numbers for the last 12 months are up 17% on the previous year but the market remains under-supplied relative to demand. With strong consumption in the off-season resulting in relatively low stock levels, the industry looks well placed coming into the peak chilled season.

"We must recognise though, that some of the drivers behind the current situation are short term such as the low NZ dollar and animal health crises in Europe." said Loza. "For long term profitability, we must continue to grow demand and address market fundamentals - ensuring that pricing is market related and that future increases in supply are managed in line with market demand."