Record Low Venison Production

10-Jul-2002

Venison production has slowed dramatically after record production last year.

For the first 6 months of 2002, venison production was down 28% to throughput of 168,000 animals, compared to 233,000 animals for the same period last year. Production for May and June was down 50% and 37% on the same months last year with June’s production a record low for any month in more than 10 years.

Last year’s production reached a record level of 504,000 deer on the back of strong demand for venison arising from European concerns about BSE and Foot and Mouth Disease.

This strong demand also saw schedules paid to farmers reach record levels of $10.17 – almost 50% higher than the 10 year average schedule for that time of year. After its record highs last year, the schedule is now at $5.29 – 17% below the 10 year average for this time of year.

The slowdown in production reflects the significant drop in schedule, the growing national deer herd and farmers’ confidence and their ability to keep stock on farm as a result of good feed conditions and good returns over the last three years.

Having recently completed a series of industry meetings in four regional centres, the Game Industry Board reports intense farmer interest in the venison market and prices, but certainly no mention of panic.

“Confidence among farmers remains relatively high and given current market conditions, it’s positive that farmers generally aren’t in a position where they are forced to quit stock, because of a shortage of feed for example.” said GIB CEO MJ Loza. “However, it’s important that when these animals do come onto the market they do so in a managed way. The need to manage supply will be especially critical in the next 12 months and producers should be working closely with their processing and exporting partners to establish an agreed supply plan.”