Industry initiative viewed as milestone

The deer industry will partner  the Ministry for Primary Industries in an initiative aimed at...
The deer industry will partner the Ministry for Primary Industries in an initiative aimed at achieving the market potential of farm raised venison. Photo by Deer Industry NZ.
A $16 million, seven year programme in the deer industry has been described as being a ''game changer'' in the production and marketing of venison.

Deer Industry New Zealand (DINZ) and the Ministry for Primary Industries (MPI) will join in a new Primary Growth Partnership (PGP) programme called Passion2Profit.

MPI will contribute almost $7.4 million to the project, with the balance coming from DINZ and its partners.

The programme would ''open up a world of possibilities'' and it aimed to deliver economic benefits of $56 million per year in additional industry revenue by the end of the programme, Primary Industries Minister Nathan Guy said.

DINZ chief executive Dan Coup described it as a ''big milestone'', saying a major investment was needed to achieve the market potential of New Zealand's farm raised venison.

''Only with the support of PGP, will Passion2Profit have the resources to create the step changes we need,'' he said.

One of the major challenges was New Zealand's over reliance on the European market. Demand there was seasonal and not in step with New Zealand's venison supply.

''There are two clear opportunities in Passion2Profit. The first is branding and positioning lean, tender, farm raised venison as a luxury red meat sold year round in new markets and market segments.

''The second opportunity is helping farmers adopt systems and technologies that will enable them to deliver the venison that markets want, when it is wanted,'' he said.

A highlight was the support of the five processors who represented about 95% of the venison produced in New Zealand, he said.

Alliance Group, Silver Fern Farms, Firstlight Foods, Mountain River Venison, and Duncan and Co were working on industry agreed quality standards and supported the concept of marketing venison under a single brand into new markets and market segments.

Other supporters of the programme were the New Zealand Deer Farmers' Association and the deer branch of the NZ Veterinary Association.

The business case for a seven year, $25 million PGP programme between the MPI, Alliance Group and farming company Headwaters New Zealand has also been approved.

The ''targeting new wealth with high health'' programme looked to reach existing and emerging markets with a new class of premium lamb products with improved health qualities, including lower levels of saturated fat, and higher levels of polyunsaturated fat and healthy omega 3 oils.

Alliance Group general manager marketing Murray Brown said the programme could result in greater value extracted from carcasses thanks to the development of a wide range of new ''health focused'' product types, including traditional meat products, manufactured food products and health supplements.

''We will be looking at developing different product forms, such as baby food, pet food and health foods,'' Mr Brown said.

The benefits of the programme would extend to the wider lamb industry and, if wider market trials proved successful and demand existed, ''real potential'' was seen for all farmers to benefit with increased returns, he said.

The programme had the potential to generate an estimated $400 million in additional revenue to the primary sector over 25 years.

Headwaters New Zealand, a group of farmer shareholders with interests in farms throughout the country, was providing the livestock for the initial programme.

 

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