The deer industry is reporting demand for New Zealand venison looks likely to outstrip supply this year, with farmgate prices expected to at least hold up or be slightly above last year’s values.
Deer Industry NZ markets manager Rhys Griffiths said venison has been holding its own in the tough global headwinds for the red meat sector, with exporters signalling expected strong demand.
“It’s still a little early to get a handle on firm farmgate prices as marketers are just starting to work towards negotiations for chilled venison contracts with their customers,” Griffiths said.
Some exporters are already offering minimum contracts.
Alliance Group agribusiness manager Jamie Saker said the co-operative is expecting increased demand from Europe for venison and will be working hard to meet the expectations of customers in the face of lower supplies following the heavy hind kill last year.
Alliance expects “pricing to be around the same as last year, with the prospect of any lift dependent on customers’ willingness to pay higher levels and economic conditions leading into this year’s chilled season”.
Exporters are reporting frozen products have had some negative price pressure in Europe.
Griffiths said this is because alternative sources of game meat from around the European Union continue to increase in quality and are eroding the quality advantage NZ venison has over other sources for frozen.
Pet food returns also remain depressed, affecting fifth quarter products such as offal and bone.
Shipping disruption could be another impediment.
Only just almost recovered from covid-19 supply chain problems, it faces potential disruption again from the Middle East and Ukraine conflicts.
Even so, First Light Farms general manager venison Matt Gibson said the EU outlook for chilled venison “remains positive”.
“Venison pricing in the US remains stable and it continues to be our fastest growing market.”
Demand for trim there is still high, which is encouraging as more venison mince is consumed in the United States year on year.
Asia also continues to grow as small premium niche markets make their way into retail and online-based retail customers.
First Light is offering a spring guaranteed minimum contract at $10.10 a kg, “which has already had ready uptake”, Gibson said.
Similarly, demand is building for Duncan NZ in Europe.
According to its most recent supplier update, the company is looking at adding a guaranteed base to its 12-month supply contracts for the spring supply period “as a way to help deer farmers with weaner pricing and farm forecast budgeting”.
