In this issue:

	Senator Judith Troeth addresses industry conference
	Decisions from Deer R&D Advisory Committee - October 1999
	Domestic venison marketing - Chris Tuckwell
	The Deer Industry Company Report
	Editor's Note

Other issues of this newsletter

Senator Judith Troeth addresses industry conference

At the recent Deer Industry Association of Australia conference in Albury, deer farmers and other industry participants had an opportunity to hear Senator The Hon. Judith Troeth outline federal government initiatives for emerging animal industries and her own views on the future of the deer industry. Senator Troeth is the Parliamentary Secretary assisting The Hon. Warren Truss M.P., Minister for Agriculture, Fisheries and Forestry. Senator Troeth has portfolio responsibility for the Rural Industries Research and Development Corporation and hence for the federal government’s commitment to R&D initiatives in the deer industry.

After paying tribute to the contribution of the late Dr Jeff Fyffe, Senator Troeth went on to discuss ways in which the industry can grow and prosper. This article is based on her recent address.

"Tonight I would like to share with you some of my thoughts on ways your industry can grow and prosper and a little about some of the Government’s programs that can help you along the way.

"Firstly, the government is heartened by the high level of diversification taking place in Australian agriculture. At a time when our dependence on the "golden fleece" and other more traditional commodities is waning, and consumer preferences are becoming more diverse and more discerning, industries such as yours provide exciting new opportunities for farmers and consumers alike.

"As we begin to enter the new millennium, our primary producers need to link themselves more closely to the world economy. They also need to be more highly attuned to changing consumer preferences - even if those consumers are on the other side of the world. And they need to be ready to compete with consumers from every point of the globe.

"I appreciate that this is not an easy task. And there may be significant challenges ahead. Newer agricultural industries, such as yours for example, may have difficulty achieving the critical mass needed to be competitive in world markets. It is that "critical mass" that helps ensure quality products and continuity of supply."

Senator Troeth then discussed some of the recent problems of agricultural industries including the Asian economic slow-down.

"I am well aware of how the slow-down impacted on the velvet and venison markets. And it is pleasing to see how time has been allocated at this conference to look at ways of rebuilding those markets and prices.

"This conference also provides an excellent opportunity for you to have a close look at the lessons learned by other industries that have faced similar challenges. .. Clearly your industry’s relatively disease-free status compared to say New Zealand, is a competitive advantage you should make every effort to protect.

"The Australian pork industry has been through tough times in the last years as world commodity markets suffered from over-supply.

"At the same time, however, Australia’s wild boar industry demonstrated the power of niche marketing, boosting its exports by 43% to 3,230 tonnes. That represents, with regard to hot standard carcase weight, an average return of $5.89 a kilogram."

Senator Troeth drew attention to opportunities that proposed expansion of the deer industry could provide for farmers leaving industries such as dairying and wool. She also noted opportunities in the Singapore market, with significant shipments of kangaroo meat and pork. Senator Troeth is well aware of the importance of the Korean market for velvet and noted that although Australian exports to Korea fell by 20% last year, overall Korean imports fell by 35%, so Australia actually increased its market share.

"I note you have Clive Jermy here to share with you the New Zealand deer industry story. There are also good news stories to be learned from other Australian industries as well. The kangaroo industry boasts a long-term growth rate of 5 per cent a year and has trebled its annual exports over the last decade. ...... But a larger export presence can also increase our vulnerability on price. When prices are set simply through supply and demand, the supplier with the cheapest price gets the business. Today’s commodity markets are under siege.....The "SuperMarket to Asia" program has highlighted the fact that for individual companies to succeed in international markets they must be members of supply chains. Successful companies concentrate on building relationships with others in their chains to be more efficient and more responsive. The multinationals are looking to buy from fewer, larger suppliers - suppliers who can provide the year-round quantity and quality they demand. Our trading partners are also looking for long-term relationships and do not appreciate being let down by suppliers turning to more profitable markets.

"The Government announced two programs in this year’s Budget to assist Australian food, fibre and agribusiness companies. These are a $9.2M Food and Fibre Chains program and a $3.1M New Industries Development Program. The Chains Program ......... provides assistance up to $30,000, along with an appropriate applicant contribution, to help businesses develop export plans. Successful businesses that have developed a plan may then apply, normally on a matching funds basis, for up to $200,000 to implement their plans. The New Industries Development Program offers assistance to Australian agribusiness companies to develop new export markets and replace imports. Under this program, the Government provides matching funding up to $100,000 to find niche markets for new products. I also remind you that under the Export Market Development Grants Scheme, first-time exporters who spend at least $20,000 on promotion in the first two years are eligible to have 50% of their expenses above $15,000 reimbursed."

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Decisions from Deer R&D Advisory Committee 
- October 1999

The RIRDC Deer R&D Advisory Committee met in Melbourne on 22nd October 1999 to consider preliminary research proposals for the 2000/2001 year.

Mr Core advised the Committee that funding for new R&D projects in the coming year was very limited. As a result, the R&D committee decided to postpone two projects which it had agreed to fund last year but which had not yet commenced.

The committee considered 7 new project proposals and decided to recommmend that full submissions be sought for three of these. These projects are:

• Over-coming autumn-winter nutritional and management constraints for weaner fallow deer. This project will look at the nutrition and management factors which affect ability to achieve optimum slaughter weight by 12-15 months
• Determining the tolerance of fallow and red deer to salt. High salt content of drinking water can have significant production depressing effects on grazing animals. Salt tolerance varies between species and may deterimine the suitablity of particular farms and grazing areas for deer farming

The R&D committee is pursuing the completion of a project on non-chemical analgesia for harvesting velvet antler. An additional experiment is required before the technique can be put forward for consideration by veterinary authorities as an alternative to local anaesthetic. It was expected that this experiment would be completed in New Zealand, but to date no report has been received. If a report on this experiment cannot be obtained from the NZ group, RIRDC will fund completion of this experiment in Australia as soon as possible. The committee considered a letter from a deer farmer proposing research on a method for influencing the sex ratio of of progeny by management. Mr Tuckwell will be discussing this further with the producer.

The committee also considered a letter from a venison processor asking the committee to organise and fund a survey of deer farmer attitudes to the current level of the statutory levies. Mr Core advised the committee that Senator Troeth has indicated there may be a review of statutory levy principles in the near future. Mr Core said that he would respond to the processor advising that the Corporation is working to overcome the current 0.5% GVP cap on matching funds. The committee however believes the issue of statutory levies and in particular the rate struck for these levies are properly matters for the deer industry itself, through peak industry bodies and not matters for the R&D committee itself which should restrict its role to assessment and management of specific R&D projects. RIRDC also does not see it as its proper role to conduct such surveys.

The committee is pursuing development of the European venison market through project DIA-1A funded last year. The committee considered a report on this project and how to progress significant outcomes from this project. Some of the information obtained is commercially valuable and sensitive and the committee is considering how to exploit the information obtained in the interests of all deer producers without publishing the information in a way that will assist our overseas competitors. It is expected that the project will be continued in some way.

The committee is also considering the appropriate mechanisms for developing the next 5-Year Deer R&D Plan (2001-2005).

---

Domestic venison marketing - Chris Tuckwell

During the first week of October, the `Tasting Australia’ Food Festival was held in Adelaide. This was the second biennial Tasting Australia Food Festival and included: The Australian Food and Wine Writers Festival; The Lifestyle Channel Australian Regional Culinary Competition; Oddbins 25<sup>th</sup> Anniversary Premier Wine Auction; Festival of Fish and various tours, culminating with a two-day `Feast for the Senses’

Reports of the 1997 Tasting Australia Festival show that more than 40,000 food professionals and media took part, along with about 30,000 members of the public. Organisers expect that more people took part in the 1999 Festival.

As part of an RIRDC-funded project contract I undertake on behalf of the Deer industry, I made appointments to meet high profile Australian chefs and food writers particularly associated with regional food promotion. The purpose my appointments were to discuss the promotion of venison in popular regional tourism areas of Australia.

A common perception that I encountered during all my appointments was that there is positive to venison itself. However, opinions strongly suggested that Industry had done itself significant damage in the past and that there was no inclination to give any complimentary assistance now.

I asked what particular concerns existed. I was told things like: "in the past the industry has treated the food industry very poorly"; "even those involved in `marketing’ venison knew very little about their product"; "we never know where to buy the product", "the quality that we are offered is very variable", and " we are never sure that our orders will be filled when we expect them to be filled".

They told me in very direct terms that it was good that the Industry was plotting a new direction but that irrespective of future activity, the Industry could not drop the baggage it carried from the past and must overcome the poor perception of the industry in any new program it undertakes.

The food industry the deer industry services obviously has a long, slow-to-forgive memory. A direct effect of this is that future domestic venison promotion and marketing programs are faced with a huge, although surmountable, barrier of disinterest before they begin. This barrier will add costs, both in time and funds.

If the Australian deer is to have any long term future, it MUST;

1. avoid further damage to any remaining consumer confidence;
0. provide potential consumers with details of QA approved suppliers of consistently high quality products;
1. be able to supply products when requested by clients and according to client’s specifications (probably means openly cooperative, strategic relationships between processors);
2. encourage rapid adoption of the industry Quality Assurance program that will give potential clients confidence in the quality of products they purchase;
3. develop legally binding forward supply contracts between producers and processors/marketers. These contracts should give marketers confidence in the availability of animals for processing and subsequent confidence in investing in market development activities. The contract would also reward those who produce to specifications and penalise those who do not.

On a more encouraging note, Sydney chef Lisa Shakine from the Sydney Hyatt, used venison from Des and John Delaine (marketed under brand name `Viande’) in the National Culinary competition at the Sydney Fine Food Festival. The venison dish created by Lisa gained the runners up award for `The Best New Food Service Product’. Following the Tasting Australia Festival I made contact with author of the Australian Regional Food Guide, Ms Sally Hammond to discuss venison and the Australian Deer industry. Although Sally generally agreed with comments from other people about past performance of the Deer industry in relation to domestic venison marketing, she told me that she is interested to include information on venison and the deer industry in her next publication.

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The Deer Industry Company Report

As most reader will be aware the major contract administered by the Deer Industry Company from April 1997 to June 1999 is now finished. A detailed project report has been printed by the Rural Industries Research and Development Corporation (RIRDC) and those interested in purchasing a copy of the report should contact RIRDC directly.

The Deer Industry Company (DIC) is overseeing two projects during this financial year. Titles of projects overseen by DIC are;
 

(i) Quality Assurance, strategic alliances and industry development, and;

(ii) Development of regional domestic and niche Japanese markets for differentiated specific cuts of venison.

Total budget and time commitments to these projects are significantly less that that committed to the 1997 – 1999 project.

The deer industry bookshop has already used all of the reprinted red and blue venison brochures that were printed earlier this year. The bookshop and DIC will reprint another 5,000 of each brochure and they should be available from the bookshop soon. All of the reprinted and new promotional material is available from the deer industry bookshop. Costs are as listed in the table.

Apart from publications listed as free, all brochures will be sold on a two for one basis (purchasers will be provided 1 free copy of each brochure purchased - buy 10 and 20 will be delivered). However, buyers will incur all postage costs.

Order from Mrs Joan Mahoney, Deer Industry Bookshop Phone: 03-5983 8727, Fax: 03-9550 8192

Not all of those who regularly provide venison purchase price and hot carcase weight data have been able to provide details for July and August 1999 at the time of writing this article. I hope that data will be included in updated figures presented in the next magazine.

There has been a rise in the average price paid for venison since the end of the financial year. The HCW price for fallow deer venison has risen from an average price of $1.52 in July to $2.24 at the end of August 1999. During the same period, the average price for red and red hybrid venison (price per kg hot carcase weight, less the industry levy, delivered to the abattoir) rose from $1.70 to $2.56 per kg HCW.

These data represent average price increases of $0.72 and $0.86 per kg HCW for fallow and red deer respectively.

The number of stock processed during the first two months of the 1999/2000 year are similar to last year The percentage of stock within weight ranges and the average HCW of stock processed is similar to that recorded for the same period last year.

Ken Robertson (a Facilitator from Victoria) has been accepted, as a transport adviser to the Deer Industry Quality Assurance Board. Ken will contribute positively to the ongoing development of the Deer industry QA program.

Those who need advice or assistance with the transport aspect of the Deer QA program will find that Ken is willing to provide practical advise to those who seek it.

A program to develop the documentation that will allow registration of QA marks for venison and velvet has begun. We plan that documentation will be completed by December and that the Deer Industry Company will lodge applications for registration in late December 1999 or early January 2000.

Currently 18 properties have level three QA (farm) accreditation and 8 of these have achieved level two QA (farm) accreditation. Eight people have achieved level three QA (transport) accreditation and two people have achieved level two QA (transport) accreditation.

The Board’s ongoing reminder is that it strongly encourages all producers to ensure that EU transport requirements for deer destined for processing for export are transported according to AQIS regulations.

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Venison Prices ($A/kg HCW)

FALLOW

x

x

x

x

RUSA

x

x

x

x

RED

x

x

x

x

Weight  Category

MAY 99

JUN 99

JUL 99

AUG 99

Weight Category

MAY 99

JUN 99

JUL 99

AUG 99

Weight  Category

MAY 99

JUN 99

JUL 99

AUG 99

less than 20

x

x

$1.38

$2.11

less than 20

x

x

x

x

less than 30

x

x

$2.00

x

20 to 22.9

$1.29

$1.37

$1.96

$2.25

20 to 24.9

x

x

x

x

30 to 34.9

$1.86

$1.50

$2.00

$1.71

23 to 25.9

$1.63

$1.63

$2.03

$2.36

25 to 29.9

$1.30

$1.50

x

x

35 to 39.9

$2.25

$1.50

$1.85

$1.81

26 to 28.9

$1.85

$1.93

$2.24

$2.39

30 to 34.9

$1.42

$1.50

x

x

40 to 44.9

$1.53

$1.40

$1.80

$1.84

29 to 31.9

$1.62

$1.52

$2.25

$2.42

35 to 39.9

$1.30

$1.72

$1.80

x

45 to 49.9

$1.92

$1.70

$1.80

$2.56

32 and over

$2.02

$2.00

$2.22

$2.40

40 to 44.9

$1.62

$1.85

$2.20

x

50 to 54.9

$1.62

$1.67

$1.94

$2.84

Maximum

$2.02

$2.00

$2.25

$2.42

45 to 49.9

$1.62

$2.29

$2.40

x

55 to 59.9

$2.20

$2.16

$2.03

$2.94

Minimum

$1.29

$1.37

$1.38

$2.11

50 to 54.9

$1.82

$2.40

$2.50

x

60 to 64.9

$1.72

$1.82

$2.02

$2.94

Average

$1.60

$1.52

$1.80

$2.24

55 to 59.9

$1.82

x

x

x

65 to 69.9

$2.40

$2.40

x

$2.82

xx

x

x

x

x

60 and over

$1.87

x

x

x

70 to 74.9

x

$2.00

$2.11

$2.85

xx

x

x

x

x

Maximum

$1.87

$2.40

$2.50

no

75 to 79.9

x

x

$2.00

$2.96

x

x

x

x

x

Minimum

$1.30

$1.50

$1.80

prices

80 to 84.9

x

x

$3.00

$2.99

x

x

x

x

x

Average

$1.44

$1.77

$2.12

quoted

85 to 89.9

x

x

x

$3.00

xx

x

x

x

x

xx

xx

xx

xx

xx

90 to 94.9

x

x

x

$2.85

x

x

x

xx

xx

xx

xx

xx

xx

xxxx

95 to 99.9

x

x

x

x

x

x

x

x

x

x

x

x

x

x

100 and over

x

x

$2.12

x

x

x

x

x

x

x

x

xxx

x

x

Maximum

$2.40

$2.40

$3.00

$3.00

x

x

x

x

x

x

x

x

x

x

Minimum

$1.53

$1.40

$1.80

$1.71

x

x

x

x

xxxx

x

xx

x

x

x

Average

$1.69

$1.70

$1.95

$2.56

Graph 1 below demonstrates the change in average prices for all venison sold by the cooperating processors and the average price of venison for Red (and hybrid), Fallow and Rusa deer. Graph 2 shows the variation in volume of venison processed by the processors providing data to the Deer Industry Company.

 

Editor’s Note

Whilst scanning a New Zealand agricultural newspaper recently I came across an interview with a Kiwi farmer who was complaining about the ongoing instability of livestock prices in the deer industry. As a sheep and cattle farmer (as well as a deer farmer), he made the observation that the prices paid to farmers for deer slaughter stock were much less stable than those for sheep and cattle.

He was complaining that prices for red deer for slaughter in New Zealand had varied in recent years between $3 and $7 per kilogram! If only!! Most Australian deer farmers would be pretty happy with price instability if it was in that range!
 
 

Last updated: 8 November 1999
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