Friday, July 8, 2022

Video – Delay lies in the detail

Yield payment for venison is still a work in progress for most processors. At last year’s Deer Industry New Zealand (DINZ) conference processors said yield payments were 18 months to two years down the track. One year on they’re still saying the same thing. As yet Firstlight Foods is the only supplier paying according to yield.

Processors put the delay down to getting the detail right. They want to be 100% confident in the methodology underpinning any yield-based payment. The stumbling block, perhaps, is deciding how far they’re prepared to push a yield payment system; while most want to reward suppliers for high-yielding animals, the question is if, and to what extent, they’re prepared to penalise below-par animals relative to the schedule price.

Duncan & Co is testing a yield scoring system with a development group of suppliers. At the DINZ conference CEO Andrew Duncan said the final per animal payment under the system being tested was schedule-based with the addition of a yield-based premium or penalty, defined by a 1:5 yield scoring system. Trials to date using this formula had produced variations of up to $1 a kilogram between the best and poorest animals.

The system was in the process of being fine-tuned and automated, with wider implementation expected within one to two seasons.

Alliance is establishing a yield-based algorithm using VIAscan. Livestock general manager Murray Behrent said several venison bone-out trials had been done but more were needed to get the necessary data to underpin the yield-based system.

“By next season we should have enough data, then it will be a matter of telling farmers how the system and structure works.”

He said venison yield payment would be closely modelled on the system used for lamb since 2003.

Silver Fern Farms was working towards inclusion of yield data information on venison kill sheets later this year, SFF venison marketing manager Karl Buchannan said, but there were no plans to introduce a yield-based payment system.

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