 |
Rural Industries Research & Development Corporation |
|| Home || Search || Contact || Publications Eshop || Privacy Statement ||
Rural Industries Research & Development Corporation
Summary of full report
Deer: Quality Assurance, Strategic
Alliances and Industry Developmentby Chris Tuckwell, Rural Industry Developments
RIRDC Publication No 01/120 RIRDC Project No DIP-4A
Executive Summary
General
Although deer were introduced in the nineteenth century commercial farming of them did not begin until the early 1970's in Victoria. However, only four of the originally introduced species (Red, Fallow, Rusa and Chital) are included in existing commercial farming systems.
Since the mid 1980's, farmed deer in Australia include Wapiti (ELK) that were introduced from Canada.
Until the late 1980.s, while returns from breeding stock sales were very high, the industry expanded rapidly. That rate of growth declined from the early 1990's due to droughts forcing sales of stock at low prices, increases in live animal exports and the slaughter of breeding females.
Planned development of international markets for Australian venison significantly increased demand and price for slaughter stock, principally due to the efforts of the Venison Market Development Manager. However increased demand created by the project during late 1996 and early 1997 was difficult to meet because of the Industry's relatively small production base. The supply difficulties were exacerbated when the supply of products, particularly venison was maintained by the slaughter of young breeding females. The net result was depletion in the industry's female breeding herds.
In an effort to maintain existing venison markets in the short term and to increase them in the long term, the industry's top priority became the increase in size and production capacity of the national herd.
Industry Statistics
Collection of data continues to be difficult, as many industry members do not understand the value of the data for industry development and planning and for their own businesses.
Slaughter statistics generally support the industry population estimates provided in the report of RIRDC project DIP-1A (The Development of the Deer Industry as a major Australian livestock industry).
The industry's current population can, at best, be described as stable however improvements in overall reproductive performance or decreases in young female culling rates could easily return the industry to a state of rapid growth.
Statistics clearly show an increase in the volume of venison processed in recent years and in returns achieved by farmers. Whether production at the high levels experienced in 1999/00 and 2000/01 can be sustained is unsure.
Quality Assurance
The ability of the industry to manage, proactively and responsibly expectations of governments and communities will contribute to either positive or negative perceptions and images of the industry in all markets. A major emphasis of QA programs is management of animal health and welfare issues. The maintenance of industry QA programs provides industry leaders with information they require to counter unreasonable reports associated with welfare concerns related to the farming of deer. QA programs are also useful tools for promoting the relationship between production practices that ensure:
(i) The maintenance of animal welfare requirements and;
(ii) The availability of high quality, uncontaminated, products for human consumption.
The industry Quality Assurance Program continues to grow, but only slowly. Many members of the industry do not accept the increasing requirement for quality assurance because consumer clients have not yet demanded it of them. Even with the unfortunate BSE and Foot and Mouth Disease (FMD) problems in Europe and the effect of those problems on traditional red meat sales in those countries, some industry people actively talk against the program.
Venison
The average hot carcase weight (HCW) price for venison sank to its lowest level, since the beginning of the commercial industry, in June 1999. This state of depression existing in mid 1999 was caused by both internal and external factors that included:
(i) The Asian currency downturn;
(ii) The industry's lack of competitive advantage in influential markets (particularly in respect to New Zealand competition), and;
(iii) Competition for limited product volumes of venison within industry processing and marketing sectors.
The decline in farm gate returns significantly reduced industry confidence and saw an increasing number of producers leave the industry and a decreasing interest in new investment in the industry.
Since late 1999 the number of abattoirs used to process deer and the number of businesses involved in processing and marketing venison has undergone a self-rationalisation. In effect the number of businesses marketing and abattoirs processing has reduced with a smaller number of venison marketers each controlling a larger volume of venison marketed. This means that processors can afford to invest in market development based on confidence in product availability.
Average venison prices have increased from an average of $2.30/kg HCW throughout 1998/99 to $3.48/kg HCW throughout 2000/01 (no deductions for the industry levy and other costs) and while prices are currently attractive, the industry must consider the reasons for the increase.
Major reasons for the increase in venison prices achieved by farmers are beyond industry control and include the devaluation of the Australian currency and the general lack of European confidence in other red meats that increased demand for meats like venison.
It will be easy for the industry to develop a false sense of security about current venison prices. In consideration of the major reasons for increased venison prices, Australian deer industry must not lessen their commitment to improvement in the average quality of animals offered for sale. Any revaluation of the Australian dollar or renewed European confidence in other red meat may easily result in a fall in venison prices.
The industry must continue to strive to stabilise prices with factors that it can control, in particular the continuous supply known volumes of quality product, to be able to attract new industry entrants and facilitate its expansion.
Velvet Antler
Although the Australian Deer Horn and Co-Products Company (ADH) continues to be a major player in the collection, grading and sale of velvet antler, other companies continue to be involved.
Interest in the processing and sale of value added velvet antler products continue to grow and several companies purchase raw products, negotiate contract processing and are developing market outlets for product in Australia. Initially, target markets are those that cater for inbound Asian tourists and in particular those in Queensland and New South Wales.
The Australian Velvet Accreditation scheme continues to have a positive effect on quality that in turn has a positive effect on price paid to growers.
Strategic Alliances
Over the past two years there has been an increasing understanding of strategic alliances and the concept of loyalty. This has resulted in a preparedness to informally accept arrangements with processors where agreements to supply are established according to mutually acceptable specifications.
Venstat is a computer database program developed as a major strategic alliance development activity of this project. It provides processors with the ability to record details about deer ownership, identification tags, species, standard hot carcase weight, sex type, age, condition score, bruising, QA status and schedule prices.
The VenStat program also allows processors to produce detailed reports for owners that highlight information that can be used to improve grower returns. These reports include: hot carcase weight (HCW), body condition scores, carcase bruising, co-product bonuses and prices for each carcase.
Processors can print Tax Invoices for each deer farmers directly from the program.
This project has advertised Australian venison via the Food and Beverage Association.s Source Book and has nominated the point of contact for interested consumers as the Deer Industry Association of Australia Secretariat.
The Future
Major considerations for continued Australian Deer industry price stability, industry expansion and market demand for industry products include:
(i) Farmer and processor commitment to price schedule grids that ensure that farmers target processor specifications and processors pay premiums for carcases that meet or are close to `ideal. specifications;
(ii) The development of sustainable and profitable markets for industry co-products;
(iii) Collective commitment of farmers and processors to industry quality assurance programs and;
(iv) Continued development of strategic alliances between groups of growers and selected processors.
|
