Steady early demand for venison in Europe and new opportunities in the United States market have exporters encouraged as venison bucks the New Zealand red meat trend.
While demand is steady, challenges continue. It is early days, but exporters report farmgate prices are expected to build on last year’s stability.
Venison companies are focused on extracting maximum value from the US market, following the launch of the SFF Futures co-investment project, alongside their other marketing work in the European Union and Asian markets.
The North American project builds on work started in 2020 to pivot venison sales to US retail customers, following the severe impact on foodservice during covid.
The US now accounts for about 39% of the returns from venison exports and returned about $59 million in export value in the year ending May 2024.
Exporters report a positive outlook for the 2024-2025 venison season.
“While the talk will always fall back to the shortages caused by lower deer numbers, it does provide the perfect environment to commit to, and establish, more niche markets,” Alliance Group sales manager Katrina Allen said.
“The aim is to continue to expand the range of products to the affluent consumers of the North American market.
“This market offers year-round sales and good growth potential, so the timing of this project is perfect for the rebuilding of the industry.”
Allen said elk sales to the North American market continue to gain momentum with good signs that this niche market can grow into an important year-round revenue stream.
There’s been good early demand for chilled venison in Europe, where chilled venison volume and pricing discussions have also just started with customers for most exporters.
While it is still early for marketers to confidently come out with indications of the farmgate contract prices they will be offering deer farmers this year, good demand is being reported.
About 28% of export value today is derived from Europe.
While there are obvious concerns around the constricting supply, Allen said the focus for Alliance will be on supporting its in-market partners who understand the importance of offering a safe, consistent product, specifically raised for this market, and who are able to extract maximum value so as to gain the very best returns back to farmers.
Duncan NZ reiterated the strong demand from European game season buyers.
“It appears Europe now understands there is likely to be less supply available,” Duncan NZ general manager marketing and operations Rob Kidd said.
Kidd expects from early discussions that the outlook for this season’s chilled EU prices will be “at least as good as last year, if not a little better”.
He is realistic that the law of supply and demand “will not work as simply as we might hope”.
“The price and availability of competing proteins, such as European wild venison, will all impact the price.”
EU retailers and the foodservice sector remain very price sensitive.
One of Duncan NZ’s large German retail customers has decided not to stock game meat, including venison, this season.
“They are actively seeking cheaper non-game protein options and that shows alternative proteins, priced more attractively, are key to shelf-space at retail level.
“We will be investigating this further on an upcoming market visit and paying close attention to see if this is just one retailer’s approach or possibly a wider European trend.
“This tells us we are right as a company and industry to continue to build demand in the non-EU markets such as North America, Asia and China.”
Global growth is expected in petfood items with offal, bones and deer skins experiencing steady demand.
That’s a positive, Kidd said, given the turmoil surrounding other meat species and “suggests these specialty deer items are achieving some good differentiation”.
A lack of 20-foot containers, due to global shipping supply chain disruption and the threat of strike action in both US and EU ports, is adding to the now lengthy list of challenges for meat exporters.
Despite the challenges, venison has bucked the overall trend for red meat, with the Ministry for Primary Industries’ latest Situation and Outlook for Primary Industries (SOPI) projecting a rise in venison export value of 10% to around $200 million in the year to end June 30 2024.
Venison’s market diversification is expected to push deer industry growth further, with the SOPI forecasting venison export revenue to lift by a further 9% in 2024-2025, with demand potentially exceeding supply.
National published farmgate prices have averaged $8.70 a kilogram, above the five-year average, in the year to June 30 2024.
Last year processors offered chilled venison niche market contracts at prices upwards from $10/kg, rising to $10.30-50/kg at the September peak.
