Deer industry statistics from 2004
Summary
The deer industry in the AlpValleys region is based primarily on
breeding temperate deer species for the production of velvet antler,
venison and venison value added-products. Although it is a moderate
size industry within the region, the industry has a strong export
focus. Approximately 80% of product is sold into Asian and European
markets.
The estimated GVP of the industry is currently about $6 million
p.a. at farm gate; 70% from venison and 30% from velvet antler with
some local value adding. 50% of GVP is produced within Wangaratta
Rural City with the remainder of the industry spread throughout Alpine,
Indigo and Towong Shires. Less than 2 per cent of GVP is produced
within Wodonga Rural City.
North East Region |
1996 – 97
AG Census |
2000 – 01
AG Census |
Deer on hold at time of census |
4,301 |
4,245 |
Contribution to Victorian number
of deer holdings |
11% |
13% |
Contribution to Australian
deer holdings |
3% |
3% |
Estimated number of farms |
19 |
14 |
Source: ABS Agricultural Census 1997 and 2001
Deer industry overview
Detail |
Comments |
Product description |
Velvet antler, venison and venison value added-products. |
Main season |
Not seasonal. |
Industry associations |
Deer Industry Association of Australia |
Domestic market information |
Price per deer carcass approximately $350 with
main purchasers being restaurants. |
Export market information |
The level of output exported depends on the
international market price. |
Source: AAVAF Survey 2004
Location of the deer industry within North East Victoria
2001 Ag Census |
%
of production volume |
North East Region |
Victoria |
Alpine Shire |
10.2% |
1.3% |
Indigo Shire |
20.6% |
2.7% |
Towong Shire |
11.2% |
1.5% |
Wangaratta (RC) |
56.5% |
7.5% |
Wodonga (RC) |
1.6% |
0.2% |
Source: ABS Agricultural Census - 2001
Projected deer industry growth
Source |
Indicator |
Comments |
(ABS) AG Census and survey
data |
Growth in production volume 1997 to 2001 |
The stock of deer remained steady over the
two census periods. Stocks declined by 1.3% from 4,301 in 1997
to 4,245 deer in 2001. |
Surveys |
Current profitability |
Was stated as very low by respondents. |
5 year business plans |
Seem unfavourable with respondents looking
to change agricultural pursuits. |
5 year business outlook |
Stated as poor. |
Business planning / budgeting |
Not conducted. |
Age of producers |
Those surveyed were in the higher aged brackets
of 50 years plus. |
Capital expenditure 2002-03 financial year |
Represented approximately 50% of gross income
of those surveyed. |
The 2001/2002 season saw record average venison prices. However
the industry was unable to exploit prices fully because it was unable
to supply the market.
The 2002/2003 season provided two major difficulties for the Australian
deer industry:
- An increase in the relative international value of the Australian
dollar, and
- Drought resulting in a lack of feed and very high prices of
supplementary feed. As a result, many stock were underfed and production
costs increased sharply.
In 2002/2003 the price for venison fell dramatically from an average
of $4.24 to $2.11 per kilogram.
The deer industry is forecast to have a moderate average annualised
growth rate over the next five years.
Deer industry labour requirements
Detail |
Comments |
Estimate of labour employed
directly:- |
Full time |
Predominately owner operators with
little outside employment used. |
Part time |
Casual |
Areas of indirect employment |
Meat processors and restaurants, brokers, suppliers,
transport service providers. |
Labour market issues |
No labour required as deer farmers tend to
be small scale operations within the region. |
Labour for deer farming is generally an owner producer relationship.
The deer industry in the region is based on farms that were profitable
enterprises during the speculative expansion phase of the industry.
Many small farmers are unlikely to be able to continue if venison
prices remain low and production costs relatively high. As a result
the national herd is likely to shrink again.
The future of the current industry will depend on demand from international
markets and the industries ability to produce and market quality
assured products that consistently meet consumer specifications.
Deer industry marketing activities
Detail |
Comments |
Marketing undertaken |
Simple marketing activities conducted by business
operator. |
Value adding activities |
Undertaken by one respondent who works with
a manufacturer to butcher, bone and pack meat for restaurant
purchase. |
Labels and brands |
Waterfall Creek Venison, Eurobin. |
The Deer Industry Association of Australia Ltd (DIAA) has established
two product development and marketing companies:
- Australian Deer Horn and Co products Pty Ltd (ADH), and
- Deer Industry Projects and Development Pty Ltd.
Boutique marketing in high value markets is matched to the scale
of production.
The deer industry's research and development programs are funded
by statutory levies on the sale of animals for venison, velvet antler
sales and the sale of live animals into export markets. The majority
of these funds are collected from levies raised by the deer slaughter
levy (venison).
Deer industry strategic advantages and opportunities
- Continue to develop initiatives for "cooperative farms" to
improve economics of scale
- Processing of meat at Norvic Pty Ltd, Wodonga. Norvic is an
accredited Halal abattoir so opportunity to increase exports to
Muslim countries is a possibility.
- There are well-established markets both locally and overseas
for venison, velvet antler, and the sale of live deer for breeding.
- Deer are largely disease free, very low maintenance, and easy
to farm.
Deer industry strategic disadvantages and impediments to growth
- Lack of domestic promotion for venison and limited response from
chefs purchasing the venison.
- Approximately 85% of the commodities produced from deer farming
are sold to export markets, which expose the industry to the fluctuations
of international market forces.
- There is strong competition from New Zealand producers who are
the worlds leading producer of deer products.
- The industry competes heavily for the processing and marketing
of limited product volumes of venison.
- Most farmers don’t have a background in livestock management
and don’t rely on their deer enterprises as the primary source
of income from the farm. As a result the deer farming industry
in the region is characterised by small, non-commercial scale,
enterprises.
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