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Rural Industries Research & Development Corporation
by Chris Tuckwell
February 2003
RIRDC Publication No 02/128 RIRDC Project No DIP-5A
Executive Summary
General
During the two years from July 1999 to June 2001 the Australian deer industry arguably experienced its most profitable and commercially successful period since the speculative days of the 1980’s.
However, the most significant contributors to that commercial success were factors over which the industry had little or no control. In particular, the devaluation of the Australian currency and the general lack of European confidence in other red meats during 2000 and 2001 significantly increased demand for alternative red meats like venison.
The relatively high prices, for venison in particular, meant a significant increase in the number of animals processed.
Implications of the high kill numbers from July 1999 to June 2001 are already being felt by processors who are increasingly unable to source stock required to meet the existing relatively low demand for venison.
Industry Statistics
Slaughter statistics collected from 1999 coupled with velvet production statistics have allowed some amendment of industry population estimates provided in the report of RIRDC project DIP-1A (The Development of the Deer Industry as a major Australian livestock industry).
Best estimates suggest the Industry's current population has fallen and venison production is unlikely to increase significantly during the next two or three seasons unless a temporary increase occurs from the sale of breeding stock.
Quality Assurance
RIRDC project DIP-3A part B (Venison Quality Assurance) reviewed and updated all industry QA manuals, including the addition of HACCP sections in each manual and developed a computer database program that will allow those who participate in the industry farm QA program to easily record, store and report on all information required by the program.
Amended manuals and a copy of the new computer database program (Deer QAMA) have been provided to all registered manual holders during the period of the project.
Deer industry Quality Assurance Facilitators have been made aware of amendments to the manuals and have been trained in the use of Deer QAMA.
The ACC and the Trade Marks Office have finally accepted and registered the distinctive industry quality assurance accreditation marks for venison, velvet antler (one for processed antler and another for unprocessed antler) deer farms and deer transports.
Documentation for the use of each mark exists (prepared as part of previous projects) and now the Deer Industry Company must determine how to make these marks available for those who wish to use them and how the use of each mark will be audited.
Venison
The average price farmers received for venison during the first half of the 2001/2002 financial year was higher than average prices received at any time since the end of the speculative period of the Industry’s development.
In the second half of the 2001/2002 season the price for venison fell dramatically (from an average of $4.78 to $3.27 per kg hot carcase weight) due again to factors over which the industry had no control and despite a decreasing availability of stock to process. The major contributor to lowered prices was the sudden availability of relatively cheap, high quality beef throughout Europe.
The immediate prognosis for future venison prices is unclear, but initial estimates suggest that both demand and average price for the coming season are likely to be lower than those experienced during the 2001/2002 season despite the anticipated shortage (relative to production during 1999/2000 and 2000/2001) of animals available for processing.
The percentage of deer processed that have carcase weights outside the ideal hot carcase weight range, particularly those less than ideal weight, is a continuing cause for concern and should be reflected in Industry extension programs aimed at improving average returns to farmers.
Velvet Antler
Velvet antler production in the 2001/2002 season was less than that recorded for the previous season although the general production trend since the 199394 season is still an increasing one.
The Australian Deer Horn and Co-Products Company (ADH) collected, graded and sold almost 16 tonnes of fresh velvet in the 2001/2002 season out of an estimated total of 27 tonnes produced by the industry. ADH continues to be a major player in the Australian velvet industry, managing the collection grading and sale of approximately 60% of the Industry’s velvet.
More than 90% of velvet produced by the Australian Deer Industry is produced by red deer and the quality of red deer velvet produced in Australia is similar to the quality of red deer velvet produced by the New Zealand Deer Industry (relative percentage of velvet in each grade classification).
The weighted average value ($/kilogram) of each grade of red deer velvet produced by the Australian Deer Industry is about AUD$15.00 less than that obtained by the New Zealand Deer Industry.
The Future
The future of the Australian Deer industry is still uncertain. What is certain is that the future of the industry will be inextricably linked to its ability to produce and market quality assured products. This is particularly so for the Australian Deer industry, as in excess of 90% of its total commercial production is sold into international markets over which it has little control.
Compared to other red meat industries the venison industry is small and therefore must ensure that clients have no quality based reasons to reject its products but are in fact encouraged to favourably consider Australian venison on the basis of its credibility and acceptability guaranteed by quality assurance systems that accredit its production.
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