RIRDC Completed Projects in 2000-2001 & Research in Progress as at June 2001

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2.3 DEER - COMPLETED PROJECTS
PROJECT No	PROJECT TITLE	RESEARCHER	PHONE	ORGANISATION
BII-1A	Development of domestic markets for value added Australian Velvet Antler and Deer Co products	Chris Tuckwell	08 8523 3500	Bilby International Pty Ltd
DIA-2A	Development of niche European market opportunities - Follow up to DIA-1A	Chris Tuckwell	08 8523 3500	Rural Industry Developments Pty Ltd
DIP-3A	Venison Quality Assurance	Chris Tuckwell	08 8523 3500	Rural Industry Developments Pty Ltd
UWS-16A	Nutritional requirements and growth characteristics of pregnant and lactating red and fallow deer	Robert Mulley	02 4570 1438	University of Western Sydney


 
 

Project Title	Development of domestic markets for value added Australian Velvet Antler and Deer Co Products Part A
RIRDC Project No.:	BII-1A
Researcher:	Chris Tuckwell
Organisation:	Rural Industry Developments PO Box 1105 GAWLER EAST SA 5118
Phone:	08 8523 3500
Fax:	08 8523 3301
Email:	cdtuckwell@bigpond.com
Objectives	To improve returns to Australian deer farmers by target development of niche markets for venison co-products and value added velvet antler products. · Research and document ideal processing, packaging and handling technologies for Australian fallow deer velvet antler and venison co-products. · Research market specification and likely demand from selected International and Australian domestic markets for value added deer antler and co-products. · Develop and document sales strategies that will maximise domestic Australian market acceptability an availability for Australian deer industry co-products.
Background	One of the major reasons for the consistently greater returns realised by New Zealand farmers from animals sold for slaughter is that New Zealand marketers have created ongoing, profitable demand for co products collected during animal processing. In the past, the many processors of Australian deer have been unable to separately market their small volumes of co products. The recent rationalisation of the deer processing industry means a few processors will have access to volumes of co products that are commercially saleable. Improvement in the value of co products sourced from red deer and the creation of value for co products available from fallow and rusa deer will significantly improve returns to Australian deer farmers.  Previously unachievable profits (from co product and value added sales) can be passed directly back to all deer producers while previously unrealised profits from the sale of fallow velvet antler and improved returns from the sale of value added velvet antler products can only improve deer farmer returns.
Research	Two international companies in New Zealand that process significant volumes of deer antler for international and New Zealand’s domestic market were visited to source information processing and packaging techniques for velvet antler and co products that can be adopted for Australian product destined for Australian domestic markets.  A guide for market requirements including specific harvesting, processing, packaging and presentation requirements for fallow deer velvet antler were determined in consultation with consumers With help of existing business contacts and the Australian Tourism Export Council contact was made into potential clients to investigate their interest and determine specific product, processing, cutting, packaging and presentation requirements. This phase of the project investigated potential product demand patterns and volumes and involved travel to personally meet with potential clients. During visits to these markets, evaluation of competition, particularly from New Zealand product will be undertaken to establish their product positioning strategies and any branding success.


 

Outcomes

Estimates of average consumption of value added velvet antler and venison co products by Asian tourists to New Zealand transposed to estimates of the number of inbound Asian tourists to Australia, suggest that the potential demand for these products could be significant. New Zealand estimates suggest approximately 10% of all venison co products produced in New Zealand are sold to tourists. If 75% of are sold to tourists from China, Korea, Hong Kong, Taiwan and Singapore, estimated volumes of venison co products sold to these tourists approximately equates to the volume of co products available from 30, 000 red deer. Other information that continues to be generated, both anecdotal and scientifically researched, on the value of velvet antler and venison co products in treating animal ailments demonstrate the apparent opportunity to enter and develop these markets for the benefit of animals treated and the commercial expansion of the Australian Deer industry Our investigation of Australian tourist markets, in particular health food shops and Asian herbalist shops, suggests that this market sector’s knowledge of the Australian deer industry generally and the availability of deer co-products specifically, is almost nonexistent. There are some commercial outlets serviced by Australian companies that have limited knowledge of the Australian industry. However there has been little or no commercial development of these markets and the only promotional material available to retailers is that produced by New Zealand.

Implications

The apparent market opportunities for value added velvet and venison co products are obvious from the information contained in this report. Given the massive spending on pet foods by people in Europe, North America and Australia and owners willingness to ensure that animals are properly cared for the market opportunities apparently offered by this sector appear significant. Infra structures associated with production and marketing of deer co-products in New Zealand suggests that the most commercially effective method of marketing products to clients is via specialised retailers rather than through existing health food and herbalists businesses. The market is potentially too large and the Australian deer industry too small for more than one or two players. If more than one or two players enter the market all player will not be able to confidently source reliable quantities of consistent quality product and continually offer commercially acceptable quantities of product for sale. It is important for the Australian industry to begin development of these markets immediately and probably in cooperation with New Zealand business in an attempt to create supply channels that can meet the potential demand for products and minimise unnecessary trans-Tasman competition


 

Project Title:	Development of Niche European Venison Market Opportunities
RIRDC Project No.:	DAI-2A
Researcher:	Mr Chris Tuckwell
Organisation:	Rural Industry Developments PO Box 1105 Gawler, SA 5118
Phone:	(08) 8523 3500
Fax:	(08) 8523 3301
Email:	cdtuckwell@bigpond.com
Objectives	Development of identified potential industry clients by:  · The negotiation of agreements to ensure clients only source products from DIAA approved suppliers. · The determination of client product specifications · The identification of suppliers who are prepared to service the clients on behalf of the DIAA and according to strict quality and specification standards. · Assistance with the development of strategic alliances between producers and the selected marketers. · Development of mutually acceptable contractual arrangements (particularly related to quality and availability of stock for slaughter) between producers and marketer. · The encouragement of producers to adopt the industry QA program and to seek accreditation by it.
Background	The Australian deer industry’s lack of competitive advantage in influential markets coupled with the Asian currency downturn, the revaluation of the Australian dollar relative to the German Mark and the within industry processing/marketing competition combined to create a considerable decline in farm gate returns from mid 1997. The decline in farm gate returns saw an increasing number of producers leave the industry. To assist the industry’s survival, encourage it to grow and provide producers with an ability to realise profitable returns the DIAA undertook research to investigate and encourage the development a long-term relationship with a European partner, based on a branded Australian product, firm supply agreements, guaranteed supply of quality assured product, scheduled delivery dates, firm year round price and an open book financial relationship. Development of stable, long-term demand for the guarantee of supply of consistent quality product will increase returns to producers. In turn, improvement in producer returns and forecast stability of the returns will attract new participants to the industry and encourage existing producers to expand their production.
Research	The project assisted the initial negotiation of commercial, potentially long-term venison marketing business relationships between Australian deer farmers and a European venison marketer. At the end of this project an initial shipment had been made and negotiation of a second shipment was almost complete. The European client identified by the project indicated their interest in obtaining venison from the Australian industry during periods of traditional annual demand downturns. Provided negotiations with the selected European partner continue to develop and reach a satisfactory end point, this market outlet will contribute to the stability of demand and price for Australian quality assured product across normal supply cycles. However, the ongoing development of this commercial opportunity and establishment of mutually acceptable business relationships must be undertaken directly between the project partners and in a commercial environment.

Outcomes

Objective development of domestic market opportunities and control of supply to those markets that ensures consistent availability of quality assured products should improve returns to farmers and rebuild domestic consumer confidence in the Australian deer industry. If the industry is unable to quickly develop market outlets for its products that give price confidence to its farmers, its immediate future is in doubt. Information gathered by the project has also demonstrated that clients do exist who are willing to purchase venison directly from international suppliers rather that through traditional importers. These importers suggest that they are concerned about the dominance of venison importing by traditional venison importers and the obvious control that the dominance imposes over their own businesses.

Implications

Industry managed projects similar to this project that aim to investigate and develop ‘niche’ domestic market opportunities for Australian venison based on regular supply of quality assured product appears to offer new market opportunities for the Australian industry. The ongoing development of opportunities identified by this project should give farmers improved confidence in the availability and accessibility of new markets and subsequently encourage confidence to investing in the Australian deer industry’s future. Farmer contracts that result from this project will encourage adoption of the industry quality assurance program by rewarding those who produce to specifications and penalise those who do not.


 

Project Title:	Venison Quality Assurance
RIRDC Project No.:	DIP-3A (Part B)
Researcher:	Mr Chris Tuckwell
Organisation:	Rural Industry Developments PO Box 1105 Gawler, SA 5118
Phone:	(08) 8523 3500
Fax:	(08) 8523 3301
Email:	cdtuckwell@bigpond.com
Objectives	· To review, and update the Deer industry Quality Assurance program by updating manuals, and the industry code of practice.
Background	The project sought to improve quality of venison available to markets by upgrading the industry QA programs in line with international standards and to encourage greater participation in the programs by simplifying data recoding, storage and reporting.
Research	The project undertook to: (i) initiate development and coordination of industry serving to the markets on a basis of supplying any Quality Assured product while controlling growth of demand to ensure that contracted demand does not exceed ability to supply, (ii) review and update all industry QA manuals, with particular emphasis on the inclusion of HACCP sections in each manual, (iii) develop a computer database program that will allow those who participate in the industry farm and transport QA programs to easily record, store and report on all information required by accredited to be maintained by businesses accredited by the program and, (iv) update and rewrite the Deer Industry Code of Practice.
Outcomes	Available for dissemination and use by industry and its partners where appropriate are: (i) updated Deer Farm Best Practice Manuals, Deer Transport Best Practice Manuals and Venison Processors Best Practice Manuals, each now include appropriate HACCP sections (ii) a computer database program (Deer QAMA) that will easily record, store and report on all information required to be maintained by all businesses accredited by the Deer Industry QA program and (iii) a new Deer Industry Code of Practice.
Implications	The Australian Deer Industry’s QA program is designed and planned to help guarantee market access for industry products. Increasingly international and domestic markets for all manner of products and services expect suppliers to take full responsibility for the goods or services they supply. To be credible and accepted by the marketplace as a reasonable guarantee of food safety and commitments to animal welfare, QA programs must be open to regular audit by both program administrators and the market place. Through the updating of the Industry QA manuals, the production of the Deer QAMA program and the amendment of the Deer Industry Code of Practice, this project helps provide credibility and audibility of the Australian Deer industry QA programs that is required by the marketplace.


 

Project Title:	Nutritional Requirements and Growth Characteristics of Pregnant And Lactating Red And Fallow Deer
RIRDC Project No.:	UWS-16A
Researcher:	Associate Professor Robert Mulley
Organisation:	University of Western Sydney, Hawkesbury Campus RICHMOND NSW 2753
Phone:	(02) 45 701438
Fax:	(02) 45 70 1383
Email:	r.mulley@uws.edu.au
Objectives	· To determine the daily energy intake requirements of pregnant and lactating red and fallow deer. · To develop a body condition scoring chart for fallow deer, and examine the relationship between body condition and reproductive performance.
Background	Meat production systems are based around care and maintenance of breeding females. There was no information on the daily feeding requirements of pregnant and lactating fallow and red deer, and these 2 species make up over 90% of farmed deer in Australia. Precise feeding of breeding stock is fundamental to successful reproductive performance, and to produce carcasses of high quality. The only previous estimates for daily energy requirements of female red and fallow deer were interpolated from work done on red deer stags in the South island of New Zealand. These data were acknowledged by RIRDC as being inadequate at a deer nutrition forum in Melbourne in 1997, which led to the current study.
Research	The experimental approach involved extensive analysis and review of information on the nutritional requirements for pregnancy and lactation in other livestock species. A series of trials on daily feed intake in individually housed red deer hinds and fallow deer does was then carried out, in parallel with pasture-fed controls. Deer in pens were fed concentrate feeds of known energy and protein levels. Patterns of daily feed intake were measured throughout pregnancy and lactation in fallow deer and throughout trimester 3 in red deer. A body condition scoring (BCS) chart was developed for fallow deer, and this was used in conjunction with BCS descriptors previously developed for red deer, to examine the relationship between BCS and reproductive success. Examination of diurnal feeding patterns of deer, and feed intake of fallow deer fawns from weaning to 20 weeks of age also formed part of the research.
Outcomes	Information on the daily metabolisable energy intake (MEI) of fallow deer does during pregnancy and lactation is now available. Daily requirements are higher than previously estimated for fallow deer, and vary seasonally. Diurnal feeding patterns were largely crepuscular, although feed intake also occurred around mid-night and mid-day for most animals. Feed intake requirements in early lactation were double those for trimesters 1 and 2 of pregnancy. An annual guide to feeding was developed. Fallow deer fawns consume "hard feed" from 7 weeks of age and require the same daily feed intake as non-pregnant adult does from 16 weeks of age, to maintain growth and development. The daily MEI data show that hinds can offset reduced feed intake by mobilisation of body reserves with little or no impact on foetal growth. However, reduced daily feed intake for prolonged periods increased the length of gestation. BCS was shown to be an important indication of reproductive success, and is a more useful measure of animal well being and carcass quality than weight.
Implications	Precise strategic feeding of red and fallow deer breeding stock is now possible which should lead to more consistent reproductive performance and higher quality slaughter animals. Furthermore, use of strategic feeding in conjunction with BCS systems for both species will lead to better resource management and profitability, as farmers consistently produce to specification.