Access for Sliced Velvet Into Korea

5/28/2003

ACCESS FOR SLICED DEER VELVET

It was announced today at Deer Industry New Zealand’s Formal General Meeting in Timaru that access for sliced deer velvet into Korea has been obtained.  This comes after more than 7 years of lobbying by the deer industry and Ministry of Foreign Affairs and Trade (MFAT), Ministry of Agriculture and Forestry (MAF), Embassy and Trade NZ officials.

“Velvet is in sliced form when it is prescribed to a patient by an Oriental Medicine Doctor in Korea.  However, currently the deer industry can only export velvet as frozen or dried whole sticks” said Deer Industry New Zealand Chairman Clive Jermy.  “Obtaining access for sliced velvet is a significant development for the New Zealand velvet industry as we will be able to process and add value on-shore.  It also means we can package our product ready for final use so we can provide quality assurances, brand and promote the New Zealand origin of our velvet products.  This is not possible in current traditional distribution channels for whole stick product.”

Deer Industry New Zealand had special praise for the support of numerous MFAT, MAF, Trade NZ and Embassy officials involved in getting the door open for sliced velvet. “We would especially like to recognise the efforts of Minister of Agriculture Jim Sutton in pursuing this issue on our behalf”, said Mr Jermy.

Access for sliced velvet into Korea comes into effect on 1 April 2004 but more work is required before New Zealand is actually exporting sliced velvet to Korea.  MFAT, Embassy and MAF officials are currently working with the deer industry and Korean officials to negotiate export protocols and systems for registering NZ processing plants. 10 velvet processing plants have indicated their interest in becoming registered to export sliced velvet to Korea.

John MacDonald, Chairman of the Velvet Processors Association welcomed the development.  “It might not start off as a large business, but it could become extremely important for the New Zealand velvet processing industry. We now have the ability to add value in New Zealand which is far better than being restricted to exporting raw materials.” 

Annual exports of New Zealand deer velvet amount to roughly $30 million, a figure that has remained stable despite the industry’s growth.  The deer industry sees access for sliced velvet as one way the industry’s exports can grow new channels and markets in the future.