North Island deer
This report contains the key results from the Ministry of Agriculture and Forestry’s 2008 deer monitoring programme. The full Pastoral Monitoring Report 2008 will be available in December 2008.
Key points
- The 2007/08 cash operating surplus of $51 000 showed only a marginal increase in dollar terms on 2006/07. This was the result of significant farm operating cost increases in feed-related and fuel-related expenditure.
- The 2007/08 net cash income of $155 000 was four percent higher compared to the previous year. Net cash income would have been significantly higher if not for velvet returns being well below earlier expectations.
- Venison prices are steadily improving and deer sales in 2007/08 were up 26 percent on 2006/07.
- The peak of the venison schedule was higher in 2007/08 than 2006/07 and held for a longer period than in 2006/07. This provided good returns for venison producers and allowed late sellers to be rewarded by increasing prices.
- 2007/08 was a disappointing season for velvet. Pre-season optimism was not realised with average per kilogram velvet prices down around 25 percent.
- Inconsistency in velvet pricing, industry marketing issues and the age of the average deer farmer has started to impact on farm decisions with some farmers reducing their velveting herds in favour of venison production.
- The North Island deer model farm forecast for 2008/09 is for increased returns, as further gains in venison prices and similar velvet prices are expected.
Table 1: Key parameters, financial results and forecast for the North Island deer model farm
North Island deer model budget and expenditure
Table 2: North Island deer model budget
Table 3: North Island deer model expenditure
North Island deer model profitability trends
Figure 1: North Island deer model farm profitability trends
Information about the model
The North Island deer model farm is a small stand-alone deer farm that is big enough to support a family, does not run sheep or beef cattle and is theoretically situated in the central North Island/East Coast/Hawkes Bay region.
Note: Prior to 2008 the theoretical location of this model farm has been near Rotorua but incorporated survey data from the Waikato and Bay of Plenty.
Weaner hinds and stags are all carried over the winter and sold to slaughter. Half of the breeding hinds are mated to a crossbred stag. The farming programme aims to get yearling stock to target slaughter weights in late spring when market prices for chilled venison traditionally peak. Each year 25 selected yearling stags are retained as replacements to enter the velveting herd of 80 mixed age stags.
The model is created from information drawn from 20 deer farms and a wide cross section of agribusiness representatives. The aim of the model is to typify an average stand alone-deer farm for the North Island. Budget figures are averaged from the contributing properties and adjusted to represent a real deer farm. Income figures include off-farm income, new borrowing, and other cash income.
For more information on the model contact Deborah.Hackell@maf.govt.nz
Published by:
MAF Policy
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526
Wellington 6140
New Zealand
Tel: 64 4 894 0100
Fax: 64 4 894 0720
Web: www.maf.govt.nz
ISSN 1178-4385 (Online)
© Crown copyright - Ministry of Agriculture and Forestry 2008
The information in this report by the Ministry of Agriculture and Forestry is based on the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. As it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action that relies on the accuracy of the information in this report is the sole commercial decision of the user and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever for any losses or damages arising out of the use of this information, or in respect of any actions taken.
Contact for Enquiries
Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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