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Research Uptake by Deer Farmers pilot program by Chris Tuckwell
Rural Industry DevelopmentsNovember 2005
RIRDC Publication No W05/164
RIRDC Project No’s DIP-13A & DIP-15A
Continuing poor venison and velvet prices coupled with an extended drought in many areas of Australia has eroded profit margins for deer farmers further than ever before. The inevitable outcome is a further contraction in the size of the Australian deer industry.
Venison statistics presented in this report have been adjusted to take account of the researcher’s estimate that actual data collected only represents about 75% of the total Australian farmed venison kill. This adjustment is a consequence of the Industry’s inability to obtain detailed information from all active venison processors.
Seminars
Results of seminars obtained
in 2003/2004 as part of RIRDC project DIP-13A have been combined with results
obtained from the two new seminars undertaken this year to provide a more
broad industry picture.
Although results of the seminar
questionnaires need to be interpreted cautiously, there appear to be some
barriers to adoption of research findings. These may include:
Irrespective of the reason
for lack of or slow adoption of research findings, the seminar series has
demonstrated that Australian deer farmers clearly thought that they benefited
from the seminars. They felt that they were better able to understand the
information presented and were more likely to implement new technologies
and management practices on the basis of their new understanding.
Venison
Available statistics suggests
that about the same number of deer were processed during 2004/05 (31,061)
as were processed in 2003/04 (30,850) although the total number of red
deer processed rose by about 3,000 while the number of fallow deer process
fell by about 3,000.
Prices paid to farmers for venison during the 2004/05 financial year rose slightly relative to prices paid during 2003/04. Average prices for 2004/2005 are similar to those received during 2002/2003. The weighted average venison price fell from the industry high of $4.24 per kg hot carcase weight in 2001/02 to $2.11 in 2002/03 and $1.81 in 2003/04. The weighted average price received during 2004/05 was $1.99 per kg HCW.
The venison price outlook is likely to remain uncertain while: (i) The demand from Germany remains depressed; (ii) The value of the Australian dollar remains high relative to other international currencies and (iii) Prices of velvet antler remain depressed which means less animals are retained for velvet production The continuing relatively poor carcase weights must remain a cause for concern however many farmers simply cannot afford the supplementary feed required to finish animals while the price for venison remains so low.
The sustainability of the Australian venison industry is unsure. Ample evidence exists about the number of people selling their stock and leaving the industry. Processors increasingly report their difficulty in accessing stock so it is likely that the volume of venison processed in Australia will continue to decrease.
Velvet Antler Velvet antler production in the 2004/05 season was about 1,000 kg less than recorded for the previous season however indicators for next season suggest volumes will be lower as a direct result of a declining national herd.
The Australian Deer Horn and Co-Products Company (ADH) continues to be the major player in the Australian velvet industry, managing the collection, grading and sale of approximately 60% of the Industry’s velvet. ADH collected, graded and sold about 14 tonnes of fresh frozen velvet in the 2004/05 season out of an estimated total of 20 to 25 tonnes produced by the industry.
The continuing effect of oversupply by New Zealand and the lack of change in the relatively low value of the Korean WON were major factors in the lowest average price returned to farmers since 1995. The weighted average velvet price for the 2004-2005 season was AUD$31.40/kg/kg, down from AUD$40.53 in 2003-2004 and the peak price in 2001-2002 of AUD$83.09/kg.
Until New Zealand production is significantly reduced it is unlikely that prices for frozen velvet will increase.
 
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