Venison prices heading in the right direction

Venison prices are coming off their low, although hind numbers are expected by the deer industry to retreat slightly. Photo / Tim Cronshaw

Optimism is starting to creep in as deer farmers greet a lift in venison returns.

Unlike velvet which has been going gangbusters, venison took a hit, falling to $5.50 a kilogram this time last year.

However, it has been defying seasonal fluctuations at nearly $2/kg above this mark - albeit far off the giddy peak of $11.30/kg in 2018.

Deer Industry New Zealand chief executive officer Innes Moffat said deer farmers had seen a subtle improvement in prices after Christmas, from low levels.

He said this had occurred during a normally low point of venison sales as European buyers do a stock-take after the game season and contemplate their needs for the year ahead.

"We saw contracts on offer in spring a little over $7 a kilogram. The venison schedule normally falls by more than $1/kg as we go to Christmas, but this year the schedule is $7.30-$7.40/kg and providing signals to suppliers that we are expecting to see that increase.''

Moffat said European customers had shown faith in the New Zealand venison business during Europe's lockdowns by placing orders without the certainty of sales.

"The sales over the 2021 game season went well, so we are seeing a rising market and they are placing orders for the year ahead.''

This is being backed up by solid demand in North America as the foodservice market recovers, while work by exporters to create new accounts there are beginning to show promise.

They also experienced significant orders at good prices from China for their New Year's celebrations.

He said this had lifted the mindset of farmers.

"Definitely farmers are in a positive mood," he said.

"They have been patient during the Covid-induced downturn and are looking forward to improved prices as the year unfolds."

The co-product market remains uncertain with skin production down, while trim and offal to Asia for pet food production has yet to return to its previous base.

However, velvet is up 10-15 per cent from last year at about $130-$140/kg for A grade product.

The national hind herd had gone from 830,000 in mid-year 2020 to 840,000 last June.

Moffat said hind numbers could be expected to decline a little this season as some farmers had culled their herd to increase velvet stags or because of environmental restraints.

Increased shipping costs are another hitch putting a cap on venison prices.

Moffat said the sector would be pleased to see an increase in air freight capacity for chilled venison with the reopening of borders.

He said it remained risky to put a container of high-value venison on the water without the certainty that it would reach its market within its shelf life.

To reach the next European game season venison needs to be on the ships before October to get to Christmas tables in time.