The Government says it will work hard to implement a deal enabling a big chunk of New Zealand’s $120 million deer velvet export business to resume this year.
Without the deal, New Zealand deer farmers could have been left in limbo.
Officials from the Ministry for Primary Industries and state agricultural authorities in China have hammered out an agreement to restore the trade, but the pact awaits ratification in Beijing and Wellington.
It needs to be ready for the first shipments of velvet which are scheduled for late November.
The Minister of Trade, Todd McClay, is optimistic.
“I understand it is a different process from needing parliamentary assent, so we do believe that exports should commence in time for the season, but I have asked officials to double check that for me.”
McClay adds he is hopeful that there will be no bureaucratic delay in China to implementing the agreement. .
“I don’t expect there will be, now that we have negotiated and reached agreement in good faith.”
Earlier this year, China decided it would require velvet exports from New Zealand to be transported in dried form. Previously, New Zealand had exported its product frozen, and the change to dried product would have required the installation of expensive and energy-hungry drying plants.
“The agreement sets up a protocol that enables the export or importation of both frozen and/or dried velvet, so it’s for both,” says the chief executive of Deer Industry NZ, Rhys Griffiths.
“It’s awesome, and we are so thankful for both governments in terms of the negotiations and the good faith they have shown.
“We’re just waiting for things to get across the line, I’ll breathe easier once we get things ratified by both governments.”
Well over half of New Zealand’s deer velvet is sold to China, with the rest going mainly to South Korea. But much of the product sold to China is processed there and re-sold to Korea, so maintaining sales to China will help preserve the Korean market as an ultimate destination for New Zealand.
Deer velvet is used in traditional Chinese medicine for treatment of the immune system, circulation problems, joint pains and fatigue, and more recently has focused on prostate issues.
It is very expensive, earning about $120 per kilogramme in export markets.
Griffiths says he is feeling optimistic about the process.
“We are right on the cusp of the new season, and all the indicators are pointing in the right direction.”
9 Comments
Rhinos don't have to be killed to remove the horn. Poachers do it as it's quicker and easier that way. If Rhinos weren't endangered I don't think there'd be any problem with farming them and removing and selling the horn. Even for lion testicles, if we were to farm them, it's no different to all the animals we kill for meat.
Having partaken in lopping off velvet I can say its gross. Now that these stags have been bred to carry many kilos of antler on their heads, so much so the weight can mean a broken neck. Its an industry that has gone too far for the wellbeing of the animal. As a farmer its not hard to be repulsed by what we do.
“The agreement sets up a protocol that enables the export or importation of both frozen and/or dried velvet, so it’s for both,”
Long ago, MAF directed that only dried (processed velvet could be exported). NZ processing plants flourished to a total of 24 factories. Then around 20 years ago, a bilateral deal was struck to enable to export green (unprocessed velvet). 20 out of the 24 factories in NZ went bust! . I think the above change will not make a significant difference because it's just so much cheaper to process the velvet in China.
It is very expensive, earning about $120 per kilogramme in export markets
$120/kg is the price paid to the farmer for green velvet, and that's cheap. Depending on grade we pay closer to $150/kg for AS, BS and Super. Once processed the dried velvet wholesales for $350 to $1'500 per kg depending on grade.
Thanks for the article Eric, if you want more info for a future article, don't hesitate to contact me, my wife has owned her Deer Velvet company for 16 years and her parents used to have the largest processing factory in NZ.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.