{"id":30707,"date":"2018-03-01T00:00:00","date_gmt":"2018-02-28T11:00:00","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/high-venison-prices-no-big-deal\/"},"modified":"2018-03-01T00:00:00","modified_gmt":"2018-02-28T11:00:00","slug":"high-venison-prices-no-big-deal","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/news\/high-venison-prices-no-big-deal\/","title":{"rendered":"High venison prices no big deal"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

\u201cThey are coming over here to negotiate export contracts saying it is very expensive but can we have some more.<\/p>\n

\u201cThey still want it and they are still buying,\u201d Taylor said.<\/p>\n

But some importers are going home empty-handed, reluctant to pay the price some others, both from the United States and the European Union, are paying.<\/p>\n

The main concern from the EU customers stemmed from the restaurant level.<\/p>\n

\u201cThey do note that the high prices are starting to put some of their customers under pressure.\u00a0<\/p>\n

\u201cThey have expressed concern that it could reach a point where potentially it gets too high in the restaurant.\u201d<\/p>\n

While demand remains strong any resistance in the market does prompt caution.<\/p>\n

\u201cWe are very mindful that there are options at that restaurant level but we haven\u2019t seen that as yet.\u201d<\/p>\n

Low venison production had underpinned the upward trend for export returns for the past two years, however, the schedule, while at its highest in more than a decade, had settled somewhat.<\/p>\n

The average for January was $10.28, 31% higher than in January 2017 and the first time the national average published venison schedule had gone up during January.<\/p>\n

Despite the price resistance, exporters remain confident farmer returns will remain high, underpinned by the lower supply.<\/p>\n

European importers have noted the success of the most recent chilled season with most reporting all product sold.\u00a0<\/p>\n

Exporters have noted prices for lower-value carcase components such as bones have increased significantly because of demand from the pet food industry and that is having a marked impact on schedules, Taylor said.<\/p>\n

Meanwhile, exports for the year ending December 2017 were down 3% on 2016, which were down 15% on 2015 production levels.\u00a0<\/p>\n

In turn, the average value of exports lifted 13% in 2017 compared to 2016 and 19% on 2015.\u00a0<\/p>\n

The supply shortage was exacerbated for NZ\u2019s European customers as more product headed to the US market.\u00a0<\/p>\n

In the year ended December 2017 export shipments to the US lifted by 50% on 2016 as the US became NZ\u2019s leading export destination, taking 34% of total volumes.<\/p>\n

Germany, once the leading market, lost share to the US with export volumes down 20% on 2016.\u00a0<\/p>\n

The German market now represented 20% of NZ exports, compared to 30% in 2015.<\/p>\n

All European markets felt the squeeze of lower supply last year with export statistics showing volumes in each EU market back by 20% to 30% on 2016.\u00a0\u00a0<\/p>\n

Subsequently, returns in the EU markets had lifted.\u00a0<\/p>\n

Average returns in Germany lifted by 23% compared to 2016 and average returns in Belgium and Britain lifted 20% and 15% respectively.<\/p>\n

Given the jump in EU market prices, reports of price resistance from EU customers had not been surprising, AgriHQ analysts reported.<\/p>\n

Last year customers were eager to secure supply at any level, whereas this year there appears to be some caution about committing at the high levels.<\/p>\n

The dry weather through the South Island has increased slaughter rates in recent weeks but while that had not affected prices it was expected to increase procurement competition later in the season.<\/p>\n

Alliance has sent Pure South venison to key global markets as the traditional European game season winds down.<\/p>\n

It will be marketed to the retail and food service sectors in Europe, Britain and North America over April and July, chief executive David Surveyor said.<\/p>\n

The co-op is also experiencing strong demand for venison from the super premium pet food market in the US.<\/p>\n

\u201cThe strong deer schedule and market returns for venison represent good news for farmer shareholders.\u201d<\/p>\n

Alliance has also been working to ensure market growth is sustainable so it is investing in diversifying its markets from a geographical perspective and across channels such as food service, retail, manufacturing and premium pet food.<\/p>\n

Its new $15.2 million venison plant at Lorneville, Southland, has improved handling facilities, enhanced configuration, increased slaughterboard size, a wider boning room and an increased offal area.<\/p>\n

\u201cWe are investing in a modern plant because we have confidence in NZ\u2019s venison industry,\u201d Surveyor said.<\/p>\n","protected":false},"excerpt":{"rendered":"European importers are starting to baulk at high New Zealand venison prices but it\u2019s not a major concern \u2013 yet, Deer Industry NZ marketing manager Nick Taylor says.\n","protected":false},"author":14,"featured_media":30708,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[3],"tags":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t