Average prices up from last year, as Korean market propels demand for velvet

January stag sales are a highlight of the deer farming year. After a productive Southland spring, the quality and weight of animals offered at this year’s auctions was excellent, and buyers responded positively, despite velvet market conditions being generally less favourable than last year. Peel Forest Estate in South Canterbury had good consistent sale results, albeit back on last year’s prices.

Altrive Red Deer, near Riversdale, held one of the outstanding sales, bringing forward a consistent line of clean, tidy velvet, especially in the top part of the stick, and averaging around $2500 per head more than last year, clearing 100 per cent of the 48 stags and the 43 hinds they put up. Although this year’s sales fell short of the extreme highs of previous years, average values were up, with particular demand and emphasis for genetics: three year old red stags cutting 7.5 to 10 kilograms attracted the strongest attention. Netherdale Red Deer Stud, Balfour, sold the year’s most highly valued stag at $80,000.

Buoyancy returned to the trophy sector. Interest in top end antlers signals confidence in the widespread post-pandemic return of international hunters to New Zealand. Meanwhile the current stability of the venison market, sitting around $9 per kilogram, also renewed confidence in the red stag and wapiti bull sires on offer, at least at most sales.

In encouraging news for growers specialising in velvet, PGG Wrightson Velvet started this season with strong pricing on large contracts for Super A velvet destined for South Korea’s growing healthy food sector. For those growers with appropriate contracts, this counters the weakness of the current China velvet market, beset by pandemic disruption and operating in more of a wholesale or processing capacity, which causes instability for growers. Impetus from these elevated prices has driven supply volumes to PGG Wrightson Velvet up by around 30 per cent this year. As a consequence, confidence among farmers helped raise the stakes at the stag sales noted above.

Tony Cochrane, PGG Wrightson National Velvet Manager