Deer lose out to beef on South Is properties

CHRISTCHURCH - Highlands Venison Estate, at Rakaia Gorge, holds the country's largest private on-farm deer weaner sale every April, but now has switched 70 per cent of its output to beef.

The new emphasis reflects the confidence that Canterbury entrepreneurs Ian McPhail and Don Sollitt have in the future of beef.

The two own and lease the 1340ha operation, and are changing the operation to fit their plans to fill export contracts for beef and deer.

The business' three properties finish 19,230 stock units and bring in revenues of more than $1.5 million a year.

The business also uses three finishing graziers' properties at Oxford, in North Canterbury. Everything is contracted.

Mr Sollitt and Mr McPhail have no background in agriculture but said they had embraced the challenge facing New Zealand farmers to make their bank statements worth reading.

"When we took on this challenge I knew we had to contract," said Mr Sollitt. "We've applied technology and scale to this operation, and we don't accept anything that is traditional.

"We knew what the international market was doing. We've driven costs down, used technology, we don't skimp on fertiliser, we weigh stock every month, do liver biopsies, and ask questions."

They now finish 2000 head of bull beef every year, and breed and finish 2000 weaner deer. The bull-beef target for the year 2001 is 560 tonnes (2000 head), and in 2002 it will be 840 tonnes (3000 head).

The friesian bull calves are 100kg to 120kg when bought in December and August, with the goal to be 280kg carcass weight in 17 months. The weaner deer are bred at Highlands.

The beef is contracted on annual tonnages to Phoenix Meat Company in Westland, and the venison goes to Mountain River Processors at Rakaia. The partnership is involved with both South Island processors through its export business, stock for which is not limited to its own operation.

It will soon be part of an artificial-insemination programme to produce calves specifically for bull-beef finishing.

"Primarily we like to be involved in the export business, and secondly we want to export New Zealand product and to support local people," said Mr Sollitt.

"From a business point of view we quickly formed the impression that farming is very difficult unless you have scale. So we went for scale, and I think in tonnage output per month. We can't afford to miss weights."

Driving down costs includes buying in bulk, and farm management is split into stockmanship and maintenance. Mr Sollitt wants to reduce dependence on silage, with more focus on high-performance pasture species, and diet and energy-balancing meal supplements.

Shortages of stock, and solid international demand make Mr Sollitt confident about the outlook for beef. The challenge was to beat the opposition to the sale as competition between suppliers heated up, he said.

"We're fresh, we have no preconceived ideas, and we've got energy. People want to join us to be part of the deal. They're motivated by what we're doing."

- NZPA