VENISON | Slow start to the chilled season

But spot prices have failed to fire this chilled season, largely due to the overseas market being lacklustre.Demand has been slow from Europe, partly because of their ongoing political and economic troubles they are facing. Buyers remain cautious and are lacking confidence in committing to large volumes, even though venison prices are back on last season. Another reason for the reduced demand is the fact it's been the European holiday season.

The NZ dollar is also a major concern as it is stripping overseas returns. The strength in the NZ dollar against the Euro will remain strong in comparison to previous seasons and will likely keep farmgate prices subdued over the next two years according to the Ministry of Primary Industries (MPI).

South Island prices on the move

This week, 60kg AP stag prices in the South Island were $7.65/kg on average, with some of the larger meat processors having lifted their schedules by 10/kg to 15c/kg. The same time last year, prices were 14% higher at $8.75/kg.

Some meat processors that have chilled contracts in place are more than $1.00/kg above spot prices. This has left a large variance in spot prices as these companies are not so keen to compete on the spot market. Other meat processors have been competing, leaving spot prices very volatile and varied from week to week dependent on stock flows. Slaughter numbers are reportedly at low levels. It is thought many farmers are holding onto stock longer than usual, waiting for schedules to gather upwards momentum.

North Island prices struggling

In the North Island, 60kg AP stag prices remained static on $7.40/kg on average. There are indications that meat processors would like to be pulling it back, if anything. However, they're still likely to increase as the chilled season gets cranking. According to the five year average, the usual price bottom is at the end of summer. From there prices would have increased approx 60c/kg by now. This season, prices have flat lined during Autumn and have only recovered slightly this winter by roughly 30c/kg.