Early season support from the South Korean health food sector, which accounts for 30 to 35% of annual sales for New Zealand production, meant the 2022/23 velvet season started strongly.
Once the big contracts were filled demand fell away, PGG Wrightson National Velvet Manager, Tony Cochrane said.
Significant stocks remained on hand in the traditional wholesale Chinese market due to Chinese economic activity taking a while to recover from the pandemic—which also pushed consumer transactions online.
But with the Chinese and Korean economies now lifting, longer term prospects for velvet were encouraging, with indications consumers in Asian markets would be inclined to spend on luxury and health items, such as velvet, Tony said.
In three strong venison markets; the United States, Europe and China, the venison price was currently around $9/kg, and expected to rise to at least $10, with further increases possible pending the sector’s ability to diversify into new markets in China and the United States.
