Signs of stronger prices for NZ deer velvet

NZ deer velvet prices are looking strong as the season gets under way. Picture/NZ Herald.

The deer velvet season has opened strongly, with farmers reporting early enquiries from buyers at prices 10-15 per cent above last season's close, Deer Industry NZ said.

Deer Industry NZ market manager Rhys Griffiths regulatory changes in China last season led to a loss of buyer confidence and a dip in prices that did not reflect the steady growth in demand for NZ velvet from China and Korea - the main markets.

"Indeed, overall demand was such that some buyers who held off making their purchases in the belief that prices would fall further, nearly missed out on supply," he said in a statement.

Korean and Chinese companies are now actively buying to ensure they get the velvet they need, he said.

Deer Industry NZ (DINZ) estimates production will reach 675 tonnes this season, up slightly on last season.

"This increase will be needed to meet growing demand for velvet as an ingredient in health foods in Korea, which we estimate accounts for 150 tonnes of velvet a year.

"Health food products are bringing in new consumers, it's not just a case of velvet consumers moving from a traditional to a more modern form of product," he said.

The growing consumer demand is also attracting more large manufacturers, all of whom are seeking New Zealand for new health food products of their own.

South Korea remains the dominant market with about 60 per cent of all NZ velvet consumed there. Some of this is velvet bought frozen from New Zealand, processed in China and re-exported to Korea.

DINZ represents deer farmers, processors and marketers in international markets.