The launch of Kiwicross gave New Zealand farmers access to hybrid vigour ‘regularised’ as a breed. Considerable research in New Zealand has shown a 6% increase in milk production with Kiwicross bulls. There are also fertility benefits: 1.5% higher non-return rate and 3.7% better calving rate.
The first Kiwicrossbulls were named for the Forward Pack Premier Sires team in 2004.
This was also the year when Deer Improvement, which had been launched as a subsidiary of LIC in 2003, completed its first artificial breeding mating season.
The work of Deer Improvement has continued. On-farm research for venison has just been completed on the North Island monitor farm. AI with Eastern European genetics from Deer Improvement achieved gains in red deer fawn growth rates of an approximate extra 17 kg.
What hasn’t received coverage in the rural media is that in the same research the Wapiti cross red fawns achieved approximately 7kg more than the pure red deer during the first year of life, finishing 5kg heavier.
Hybrid vigour has been recognised in the dairy industry, but the deer industry is still focused on pure bred animals and what can be achieved by using high performing outliers. The model offered by Kiwicross suggests that crossbreed can achieve more.
Bob Swann, deer farmer from Geraldine has been involved in the industry since 1972. He says “the most profitable way to get weight on to animals is through hybrid vigour”. This is certainly what the research shows.
Dr Ian Scott, a veterinarian with deer and a dairy farm in the Waikato, believes the deer industry is where the dairy industry was 25 years ago in focus and economics. In 1988 the venison schedule price was $6.80. Using the Reserve Bank CPI inflation, the 1988 price of $6.80 is $12.39, but the venison schedule price for 2013 was only $7.57. In the UK, supermarkets are paying their farmers £5.70 (NZ $11.16) – one and a half times what NZ farmers are receiving.
Clearly there is value in venison that is not being accessed by the NZ farmer.
The result is increased pressure from dairying and dairy grazers leading to the decrease in deer numbers and loss of critical mass. The MPI Farm Monitoring Reports suggest that farm profit before tax is four times as great on dairy compared with deer farms – with the top dairy farmers achieve eight times as much.
The financial data indicates that even with the gains possible with accepting crossbreeds the deer industry will be unable to stop the march of dairy unless significant increase in value is achieved for the product.
Cervena captured the imagination and the German market last century. But now it is time for a revamping of the brand with consumer education on the benefits of free-range, pasture-fed, low waste, easy to prepare and cook meat.
Velvet for the health market is increasing in value and deserves consolidated marketing to prevent internal competition driving the price down. The trophy market is worth over $20 million a year, and again deserves support. The genetics are also valuable.
The deer industry has everything going for it in terms of food (venison), health (velvet) and romance (trophy stags). LIC could make the first step with, for instance, Kiwivenison and Kiwitrophy – unique to New Zealand.
This must be the goal for the future with consolidated marketing and education. A New Zealand front for the industry would allow the full value of the range of products to be achieved. The vision? Kiwisuccess.
• Jacqueline Rowarth is professor of agribusiness, the University of Waikato
