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Introduction

The deer industry was established in Australia in the early 1970s when interest in the farming of deer spread here from New Zealand and its commercial value was recognised. Since then the industry has experienced the fluctuations in prices and interest common to emerging industries and ranging from the initial boom period, when new investors paid high prices for a unique and scarce live animal, to the inevitable crash when the live animal market gave way to a product-based market and prices stabilised as that market became established.

Deer farmers have three potential sources of income:

a) sale of slaughter stock for venison

b) sale of velvet antler and other by-products

c) sale of breeding stock, which in recent years has included export of live deer.

Velvet antler is the complete antler harvested from male deer at a precise stage when it is soft and vascular before it calcifies and hardens. All male deer grow and shed their antlers in an annual cycle. While not all species of deer farmed in Australia are used for velveting purposes, all deer must have their antlers removed to ensure safety and ease of management.

Velvet antler is a highly prized substance in the practice of oriental medicine and it is also being increasingly used in western communities. Recent research by Professor Peter Ghosh at Royal North Shore Hospital has demonstrated the value of powdered deer velvet to ameliorate adjuvant and rheumatoid arthritis. Further research on this is now being undertaken.

Low labour requirements and the natural beauty of deer make them an attractive proposition for first time farmers as well as for traditional farmers to diversify into a new livestock industry.

Markets and marketing issues

The major world market for venison has traditionally been Germany where it is prized as game meat. Around 40-50,000 t of venison are consumed in Germany annually including about 5,000 t from New Zealand.

Other major markets for farmed venison lie in the European Union, Scandinavia, Switzerland and the USA. These tend to be traditional `game' meat markets where consumers gladly accept meats such as venison. They are large markets with limited Australian market penetration because of the current small size of our industry and our inability to provide the volume required. Several Australian venison processors are now developing these European markets and this trade is expected to go on expanding.

Exports of Australian product have been aimed principally at Pacific rim countries. These are difficult, non-traditional venison markets but the low-volume orders can be readily met by Australian suppliers. Australian venison is now selling successfully, particularly in Korea and Malaysia, with a large proportion of product meeting Halal kill-specifications. Most export product comes from NSW which, unlike other states, has export-accredited slaughter facilities for deer.

Australia's major competitor on the world market is New Zealand which farms around 1.2 million deer. Other countries have small but developing deer industries and are not likely to pose any major threat in the short to medium term

Venison animals are slaughtered at 15 to 24 months of age with carcase weights ranging from 28 kg for fallow up to 55 kg for red deer and higher for wapiti hybrids. Slaughter for human consumption must take place at registered abattoirs where the animals undergo normal rigorous meat-inspection procedures.

An estimated 20,000 head will be slaughtered nationally for the year ended 30 June 1997 compared to 34,000 in 1996 and 30,000 in 1995, which highlights the concern that there are not enough deer in Australia to meet market demands. Returns to producers for venison have varied markedly in recent years, but carcases meeting optimum specifications have been returning up to $2.70/kg live weight or more.

Velvet is frozen on farm after harvest and is sold either through the industry-run velvet pools or direct to Asian buyers. Traditionally, the velvet market has been volatile but in recent years prices have been relatively stable at around $120/kg for top grades. Good quality mature red stags can yield up to 3 kg or more.

Most Australian-produced velvet is processed and used locally, but the major world markets for velvet are China, Korea, Hong Kong, Taiwan and Singapore.

Other products from the deer industry include skins, tails, pizzles, sinews, and blood.

Although there is a market for these products, its development is restricted by the small volume of supply.

Production requirements

Production requirements

Stocking rates for deer will depend on the quality of the country and will vary with the time of year, but as a guide one beef-breeding cow is equivalent to four red deer or eight fallow deer.

Deer generally require specialised fencing and handling facilities as they are very agile and can readily jump 2 m or higher. Some States have specific requirements for boundary fencing which can be up to 2.1 m high but where no regulations are in force, boundary fences should be high enough to prevent the escape of deer and of the best affordable quality. A range of materials is available for deer fences including specially constructed deer-netting in various specifications.

Farm layout and design are important to the workability of a deer farm and the ease of stock management. The most practical way to move deer is along laneways. Ideally, all paddocks will be connected to a laneway system that allows ready movement of deer from paddock to paddock and to the handling yards.

The main working area of deer yards is generally under cover as deer are easier to handle in subdued lighting. Yards need not be elaborate but do need to allow for such practices as drafting, vaccination, weighing, de-antlering and loading. Commercial crushes are readily available that assist with the handling of deer.

Breeds of deer

Tropical species:

Rusa - Cervus timorensis russa (Javan), Cervus timorensis moluccensis (Moluccan)

Chital - Axis axis

Temperate species:

Fallow - Dama dama dama (European) and Dama dama mesopotamica (Mesopotamian)

Red - Cervus elaphus

Wapiti - Cervus canadensis

Sambar - Cervus unicolor

The choice of which species to farm will generally depend on climate, personal preference and market for products, but availability and price also needs to be taken into account. The number of farmed deer in Australia is estimated at 160,000 head, comprising 40% Red deer, 50% Fallow and 10% other species. Red deer, which have heavier carcase weights, are estimated to make up closer to 60% of venison production. Red deer have shown the greatest increase in numbers in recent years thanks to their versatility, production potential and suitability for farming.

The temperate species are of European origin and adapt readily to the Australian climate. They have a well-defined breeding season with the mating season generally beginning in early April and lasting around four to six weeks. Fawns are born largely in December and January.

Tropical species are less seasonal in their breeding habits and are more suited to the warmer parts of Australia

Some hybrids are now being used commercially to gain production advantages from hybrid vigour (heterosis) and additive genetic effects. The main crosses being used are European x Mesopotamian Fallow and Red x Wapiti. While Sambar and Rusa will cross-breed, commercial use of this hybrid is limited. Other species do not naturally hybridise.

Deer husbandry

They are easy to train and education at a young age to accustom them to being mustered and yarded pays dividends. However, the deer farmer needs plenty of patience, to be a good observer and have an understanding of animal psychology.

Regular supplementary feeding can be a useful aid to keeping deer quiet and easily handled.

Deer can be readily worked with dogs but it is essential that they are not rushed or crowded but allowed plenty of time to find gateways and to move up the laneways into the yards.

While the temperate species have a distinct seasonal breeding pattern, controlled joining greatly assists in the management of the tropical species. The mating season of the temperate species (called the rut) generally begins in late March and females are normally left with the males for a period of 8 weeks.

Males can become quite aggressive during the rut and it is advisable not to handle deer at this time.

The first fawns are produced in late November and if males are removed after 8 weeks, fawning will be completed by late January. Both males and females can be bred at 16 months of age with females known to breed until they are at least 16 years old.

During the mating period, males eat very little and depend on body reserves for survival. Following the rut and for the remainder of the winter, feed intake remains virtually at maintenance levels even with high-quality diets and abundant pasture.

This means that pre-rut feeding management of breeding males is of critical importance to ensure that males are able to survive the winter. This feed intake pattern is also evident in females but to a far lesser extent.

Nutrition of lactating females is also important as often summer feed may be of poor quality and may need supplementing.

Castration is not widely practised in the deer industry, mainly because of the lower weight gains of castrates. However, there are some marketing advantages in castrates: they can be slaughtered all year round; the problem of aggression is overcome; and meat quality does not change because of the rut.

Velvet antler production is a specialised operation requiring good husbandry and a knowledge of animal physiology, genetics and nutrition along with an appreciation of harvesting skills and post- harvest care.

Generally the best markets are for velvet from red, wapiti and their hybrids, although markets do exist for velvet from other species. Timing of velvet harvest is critical to maximise velvet yield and to ensure that velvet is of high quality.

Velvet can only be removed by qualified veterinarians or farmers who have undergone specialised training and are accredited to velvet their own deer.

Pest and disease control

Processing

This is due partly to the relatively small numbers and intermittent supply of deer available for slaughter and the sensitivity of export abattoirs to any situation that could jeopardise their export consideration.

At least one specialist deer-processing plant with export accreditation will commence production in 1997 which will further improve market access.

Velvet processing plants have been established in NSW and Western Australia. The pharmaceutical standard velvet processing plant at Goulburn in NSW has been in operation for a number of years producing a range of deer-based products which are sold commercially across Australia.

Velvet processing generally involves cooking at high temperatures, often in a steam bath, then drying to remove moisture. This product can then be sold in sliced or powdered form in capsules. The active ingredient of velvet, called Pantocrin, can also he extracted for use in tonics.

Economics of production

Gross margins are a first step in making comparisons between industries but they are not a measure of profitability—they merely show the difference between the gross income earned by the enterprise and the variable costs associated with it. They do not consider overheads.

Key contacts

Key references

Deer Farming in NSW - A manual compiled by and available from Bruce Mackay, NSW Agriculture

Australian Deer Farming Magazine. Available on subscription from A. Cowan, Maroondah Highway, Buxton Vic. 3711

Most Deer Industry Association of Australia State branches also have available a range of reference material.