Export prices set to remain elevated
Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
Improved market conditions for venison are expected for the 2021 season, according to industry body Deer Industry NZ (DINZ).
“In the next few weeks, some venison companies will be offering minimum price supply contracts for the game season, for shipment of chilled venison during September and October,” says DINZ chair Ian Walker.
He says that in 2020, amidst Covid-19 lockdowns in Europe, contracts were offered at between $7 and $7.20 per kilogram.
“This year, we are seeing restaurants starting to reopen in North America. Also, prices for all meat in major world markets have begun what economists expect will be a steady, long-run climb,” Walker says.
However, the most recent Westpac Meat Matters report, released 19 February, suggests a slightly less optimistic outlook.
It states that venison prices have remained weak in 2021 so far.
According to the report, prices have so far slid 2.9%.
“However, we see light at the end of the tunnel for venison producers,” it reads.
The report predicts that in the German market, vaccine rollout will boost demand and prices over the course of 2021.
It also notes that pickup will be gradual and price pickup won’t happen until midway through the year.
Meanwhile, Walker says there are two markets where growth is occurring: China and the United States.
“Prospects in North America and demand from China – a developing market for venison – keeps growing.”
He says that DINZ will be working with five major venison marketing companies to build year-round demand for venison, particularly at retail and online for home delivery.
“We fully recognise that deer farmers need a schedule premium over lamb to make venison production a competitive land use. The industry was achieving that until the impact of Covid,” Walker adds.
“Venison prices will improve. And hopefully none of us will have to deal with another pandemic in our lifetimes.”
He says that because deer farmers can bank on getting better prices during the chilled season, they should target getting venison animals away before the end of October, if that fits with their farm system.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Two high producing Canterbury dairy farmers are moving to blended stockfeed supplements fed in-shed for a number of reasons, not the least of which is to boost protein levels, which they can’t achieve through pasture under the region’s nitrogen limit of 190kg/ha.
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
The six young cattle breeders participating in the inaugural Holstein Friesian NZ young breeder development programme have completed their first event of the year.
New Zealand feed producers are being encouraged to boost staff training to maintain efficiency and product quality.
OPINION: The world is bracing for a trade war between the two biggest economies.
OPINION: In the same way that even a stopped clock is right twice a day, economists sometimes get it right.
OPINION: The proposed RMA reforms took a while to drop but were well signaled after the election.