South 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
- Over the season venison prices tracked between 13 to 38 percent higher than 2006/07 schedule prices.
- Farmer confidence in venison has lifted due to early announcements of higher spring contracts in 2008/09 and subsequent strength in the traditional frozen supply.
- Velvet price in 2007/08 was down 21 percent on 2006/07.
- The dry conditions throughout the South Island in 2007/08 particularly affected the time it took to get stock to killable weights. The lack of pasture cover and supplementary feeds during autumn 2008 will also have consequences in the 2008/09 season mainly in reproductive rates.
- Net cash income increased by 24 percent to $228 000 ($80 per stock unit) in 2007/08. This was the second consecutive year of net cash income improvement and was due to the higher prices being sustained for a longer period throughout the season.
- The farm surplus for reinvestment increased to $28 000, up 158 percent on 2006/07.
- Equity increased 96 percent to $4.5 million in the year to July 2008 due to the demand for land suitable for dairy conversion or dairy support.
Table 1: Key parameters, financial results and forecast for the South Island deer model farm
South Island deer model budget and expenditure
Table 2: South Island deer model budget
Table 3: South Island deer model expenditure
South Island deer model profitability trends
Figure 1: South Island deer model farm profitability trends
Information about the model
Deer farms are commonly of two main types – deer units within a mixed livestock system, and stand-alone deer farms. The majority of deer in New Zealand are farmed on deer units and they are generally smaller then stand-alone deer farms. The deer farm models in MAF’s Pastoral Monitoring Reports are based on stand-alone deer farms and therefore represent an important but minority group within the deer sector (estimated at 27 percent of deer farmers1). Comparing the sector using a stand-alone deer farm is important for tracking the deer sector’s progress and to better understand developments occurring in this sector.
The South Island deer model represents a family-run stand-alone deer farm in Southland and South Otago. The model is based on running predominantly red hinds in the breeding herd, with hybrids used as terminal sires. The hind herd is characterised by a blending of red deer from the United Kingdom and Eastern Europe. Progeny from the breeding hinds which are not required as replacements in the breeding or velvet herds are sold for slaughter between 10 and 18 months of age, with final culling of replacements at 20 months.
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 southern South 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: Trish.Burborough@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.
1Deer Industry New Zealand 2007
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
Contact this person
