 |
|
|
|
|
Deer Industry Statistics by Chris Tuckwell
October 2007
RIRDC Publication No 07/174 RIRDC Project No DIP-17A
Background
Accurate statistics provide
the Australian Deer Industry with supportable, objective data that can
be used to plot existing trends in production price and demand for products.
They also provide a basis for extrapolating future trends that give a foundation
for industry research, market development and industry expansion programs
that strengthen the supply base for venison marketers and velvet processors.
Aims/Objectives
To assist development, expansion
and confidence in the Australian deer industry by:
Results/Key findings
General
The Australian deer industry
received a boost in the 2006-07 season with a significant increase in prices
for velvet antler. Venison prices show some slight trends towards increase
but the change is relatively minor.
The widespread drought in Australia has affected all forms of agriculture and the deer industry has suffered badly as expensive feed supplements and generally low venison prices have forced many more deer farmers to leave the industry.
Venison
Venison statistics presented
in this report have been adjusted to take account of the researcher’s assumption
that actual data collected does not account for all deer processed throughout
Australia. In past years data collected was assumed to represent about
75% of the total Australian farmed venison kill.
In this report, data collected is assumed to represent only about 60% of the total Australian farmed venison kill. This is due to total kill by large processors decreasing, while smaller domestic processors appear to have maintained their kill and some new boutique processors have begun. Therefore, the proportion of small domestic processing has proportionally increased.
Data collected represents an estimated 5,140 animals, and adjustments have been made to make the data more representative.
Available data suggests that the number of deer processed during 2006-07 (12,857) was about half that the number processed during 2005-06 (27,305) and during 2004-05. The decline in number processed has continued from 46,652 (2002-03), 31,270 (2003-04), and 31,061 (2004-05). Total number of red deer processed this season fell by about 5,000 while the number of fallow deer process fell by about 9,500 compared to last season.
The weighted average price per kilogram Hot Carcass Weight (HCW) paid to farmers for venison during the 2006-07 financial year rose around $0.27 above prices paid during 2005-06 (from $2.43 to $2.70).
Ample evidence exists about the number of people selling their stock and leaving the industry. In particular, increasing numbers of processors report their difficulty in accessing stock, so it is likely that the volume of venison processed in Australia will continue to decrease although the average venison price may increase.
Velvet Antler
Velvet antler prices showed
some increase during the 2005-06 season and the expectation of significant
improvement in prices was realised this season. Prices for the 2006-07
season were more than double those of the previous season.
However, although the Australian Deer Horn and Co-Products Company (ADH) continued to be the major player in the Australian velvet industry (managing the collection, grading and sale of the Industry’s velvet), the total volume it manages has dropped by almost 55% since the 2004-05 season.
Industry estimates suggest Australia still produces in excess of 20 tonnes of velvet annually. However, larger producers are increasingly choosing to sell their product directly to buyers, most of who are based in New Zealand. ADH only collected, graded and sold about 7.2 tonnes of fresh frozen velvet in the 2006-07 season out of an estimated total of 17 to 20 tonnes produced by the industry.
As fewer growers support ADH, the per kilogram costs of operating the Velvet Pools increases for those who remain to support the collective Pool system. It is unfortunate that the future for ADH is uncertain as it provides a stable force in the industry that ensures growers are paid appropriately for their velvet, especially in seasons when prices are depressed.
While demand and prices remain high, individual growers are likely to obtain good velvet prices. But, when they fall, without ADH they will not have an industry-based non-profit organisation on which they can rely to actively coordinate the grading and sale of their product in a way that maximises industry returns.
Implications for relevant
stakeholders
Ongoing poor returns for
venison and velvet antler have seen the Australian deer industry continue
to contract.
Unless a range of projects that can successfully improve farmer returns continue to be implemented, the future for the Australian deer industry appears bleak.
To those who remain in the industry, the new Venison Alliance projects managed by the Rural Industries Research and Development Corporation (RIRDC) offers hope that a cooperative supply chain approach will be the boost the industry needs.
Recommendations
It is recommended that RIRDC
continue to review opportunities to invest in projects designed specifically
to improve farmer returns. Projects should consider domestic market development
for both venison and velvet products.
 
|