Nov 13, 2025
Evan Potter, NZDFA Executive Committee Treasurer
Well, the velvet grapevine is in full swing, rumours of pricing, containers on the water, grading guidelines and who is to blame for the current situation consume most deer farming conversations. Throw in an extreme weather event down south, maxed out overdrafts, unacceptable pricing, public spats on Facebook and you end up with a toxic situation that will benefit none of us.
The NZDFA’s sole purpose is to advocate for farmers interests and be a conduit of information. We provide a voice to communicate your concerns and issues, and actively work to advocate for solutions on your behalf. The NZDFA’s doesn’t make industry decisions, but instead offers a grassroots perspective so the decision makers can be informed.
We currently find our industry playing the blame game, with it being everybody else’s fault but our own. This is natural given the before mentioned pressures combined with the fact no velvet farmer is likely to make a profit from velvet this season. The current situation is predominantly down to an oversupply of the heavy weight non-traditional velvet that has more than saturated the Korean market, coupled with market manipulation by unsavoury traders.
The NZDFA executive has been communicating the below messaging since March to draw attention to things we can influence and help with forward planning.
- Quantity and quality of velvet produced, both individually and as an industry.
- Minimise OG1 and HV1, get an understanding of what the company you supply wants
- Cut NT heads shorter, don’t push the tops!
- Get informed!! Talk to a range of farmers regarding prices being paid rather than trusting what a buyer tells you. There was evidence of different pricing structures and payment timing between clients of some buyers last season.
- Be aware once you have taken a deposit you have no control, only promises!!
- The choice of who you sell to and when (within reason), deal with reputable buyers, who has skin in the game versus a plane ticket in their back pocket?
- Industry grading specifications are only guidelines, each company grades according to their individual market’s needs. If you aren’t happy consider changing.
- Diversification – businesses reliance on velvet income alone is high risk.
- Timing and dispersal of surplus velveting stags, space is tight post velveting with growing numbers of stags and limited capacity due to trucking window and processing limitations. What would be the effects on your business if those stags can’t be killed??
The points around deposits, weak selling and high exposure to velvet income is especially important in a season like this one. Once velvet has left your property an exporter could then ship that overseas to prove to overseas clients they can provide volume at a predetermined price. The talk around possible containers on the water is officially unverified to date and only adds noise to the disrupters messaging. This provides oxygen to players that share no interest in the long-term sustainability of our industry while reinforcing the need to align yourself with a reputable buyer who you trust and share the same values and vision for the future of our industry.
The level of pricing released by a South Island buyer this season is completely unacceptable and the $30 deposit offered by three companies is no better when unaccompanied by competitive pricing, so be careful and make sure you trust the person you’ve given your velvet to. Neither fairly represents the quality product you as producers spend twelve months preparing and delivering to the market.
For those questioning the value and quality of market indicators provided by DINZ over the past few years you have a valid point. I understand the desire to be positive; however producer’s levies should deliver on point messaging to enable good business decisions at ground level. The NZDFA executive has and will continue, to press this point.
Moving forward a coordinated industry wide approach will be required to rectify our current situation. The export licencing initiative still in development could be part of the solution. This will require farmer, exporter and parliamentary support to be achieved. This concept is an attempt to create a level playing field of expected business behaviour, while encouraging investment on our shores and the building of cohesive marketing strategies offshore.
I appreciate that the current season is going to test us in a multitude of ways as it did in the early 2000s when traders who are currently trying to manipulate the market successfully achieved his goal. But collectively we are stronger and by working together we can realise the true value that premium quality New Zealand Velvet should command. This in turn will ensure we are once again the vibrant and profitable industry we strive to be.
Cheers,
Evan
Continue reading DFA Stagline Issue 215 >>
