Deer boss out to lift demand

Deer Industry New Zealand has a new chief executive and a five-year plan to raise demand - putting more venison on European dinner plates.

Mark O'Connor had served as velvet manager and general marketing manager for the organisation before being promoted in January.

So far, he's enjoyed the challenge.

"Clearly, it's a difficult time for producers and exporters ... which makes it a bit of a baptism of fire really."

Exports account for 90 per cent of deer industry production, including the two key products - venison and velvet.

Mad-cow disease and outbreaks in Britain of foot and mouth in 2001 led traders and importers to take a risk on rising demand for alternatives such as venison.

"The reality was that customers moved back to lamb and beef more quickly than expected," O'Connor said.

Recovery from falling prices was hampered by an attempt to maintain income through increased slaughter that created excess supply.

Traders and importers were also trying to recover previous losses by paying low prices.

The result was a collapse in the venison price paid to farmers from about $9.50 per kilogram to the present $3.79.

Velvet is hugely popular in Asia where it is prescribed as a medicine. South Korea accounts for about 80 per cent of velvet exports.

"Our key problem is being dependent on a single niche in a single market," O'Connor said.

Oversupply and a weak Korean economy meant two years of low velvet prices.

Although venison and velvet have struggled in recent years, O'Connor is upbeat about the prospects of a five-year plan to raise demand.

Europe accounts for 80 per cent of venison exports but sales are mainly to hotels and restaurants. They are generally also limited to the traditional winter game season of November to January.

O'Connor intends creating a year-round market, although it means changing centuries of tradition.

A European summer campaign in magazines and consumer tasting in French and German supermarkets aim to build retail demand.

O'Connor said the industry needed to change the public view of venison from a strong game meat to that of low-fat, iron-rich subtle-tasting meat.

Similarly, he wants to move velvet from being a prescription product to one that can be bought off the shelf.

The industry will also be pushing to remove the Taiwan velvet quota and develop the Chinese market.

Last October, a stakeholder poll showed 93 per cent support for retaining the industry organisation but on a turnout of only 15 per cent of farmers.

The wait-and-see message from abstaining farmers was not lost on O'Connor.

"There's strong feelings from farmers at the moment, given the low prices ... farmers are really hurting."

The poll is held every five years, giving O'Connor time to implement the new plans and turn the industry around.

And having lived and worked in Germany for three years, he has a useful insight into to how the customers think. "The German side of things is of personal interest to me and I think it gives me an appreciation of the challenges."

Exportable value

* 2001: $315m.

* 2002: $263m.

* 2003: $207m.