The Path to 2025
The Path to 2025
DINZ 2019-2025 strategy:
- Premium positioning of NZ deer products
- Market development and diversification
- Sustainable on-farm value creation
- Cohesive and respected industry
DINZ formally reviews its strategy six years which guides annual work plans. DINZ works with producers, government and marketers to pursue its goal of A Confident and Growing Deer Industry.
The period 2015 to 2020 saw a change in confidence among deer farmers and the first signs of growth for the industry for many years. Stag numbers increased in response to steady velvet returns and hind numbers appeared to have stabilised. Producers indicated strongly via surveys that they were investing in the industry’s future.
The challenges the industry faces in 2020 are different to those faced in 2015. A changing regulatory landscape in New Zealand and changing consumer preferences mean different ways of managing farm resources and responding to market requirements.
While these market changes provide a welcome backdrop for our activities, the major drivers of our plans have not changed:
- Building buyer preference for our products in traditional markets, at the same time as we develop new markets that want year-round supply and pay premium prices
- Increasing deer farming productivity to match increases in other livestock industries. Providing deer farmers and their staff with the knowledge, confidence and motivation to do this
- Catering for the deer difference in animal health and welfare, research and genetics, environmental standards, training and much else.
- Enabling better environmental stewardship
- Optimise resource use and reducing greenhouse gas emissions from commercial activity.
DINZ Income and Expenditure.
A total annual investment of around $2 million a year in P2P is designed to transform the way we farm deer and market our venison. The goal: to make venison farming more profitable, so that more farmers are attracted to producing the world’s best meat.
Levies on velvet and venison enable DINZ to invest in activities that benefit everyone in the deer industry.
The money generated is also used to leverage additional funds from government for research and market development. This greatly increases the funds available.
For example, in 2015/16 a levy investment of $530,000 by DEEResearch will attract co-funding of nearly $1.5 million. A DINZ investment of $1 million in P2P will be matched dollar for dollar by the MPI Primary Growth Partnership.
Proposed levy increase
To fund our share of P2P and to continue the other work we do for deer farmers and those who process and market our products, we are proposing a small increase in the venison levy from October 2016.
Funding for our work comes from levies on venison and velvet, plus co-funding from government for research. In addition, we are making a major investment in the Passion2Profit strategy that is being funded 50:50 by government and the deer industry.
To fund our share, we are relying very much on DINZ reserves, but these will not be enough, the Board of Deer Industry New Zealand agreed to increase the venison levy by 1 cent per kg and the velvet levy by 25 cents per kg in in 2019.
In 2014/15 (not counting P2P) 32% of DINZ expenditure was on venison- or velvet-specific work, 35% on industry-good work, 22% on the Tb-free programme and 11% on DINZ overheads. These proportions vary slightly from year to year depending on circumstances.
Research, policy support and communications make up a big part of the funds devoted to industry-good. When it comes to supporting specific products, DINZ funds work that is specific to velvet from the velvet levy and work specific to venison from the venison levy.
Growth in the velvet levy will enable DINZ to invest more in building demand in the healthy foods sector in Asia. The companies involved value the quality and integrity of NZ velvet and are our best prospect for building long-term demand for our growing velvet production.
DINZ has the power to set levies under the Deer Industry New Zealand Regulations 2004. It does this after consulting with levy payers, including the venison exporters and the NZDFA.