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Traders Seeking NZ Venison

10-09-2007 | webmaster

Venison producers are in the position of needing to evaluate not only what’s happening in the supply market here in New Zealand, but also in the key consumer markets.

As Keith Cooper, the chief executive of the largest venison processor PPCS told the Deer Industry conference in May, existing venison processing and marketing companies have been careful to deal with a small number of companies in each individual market, in order to keep some influence over what happens there. They look for in-market companies with which they can build long-term relationships and that will develop value for New Zealand venison.

Meanwhile, with a rising market, DINZ is reporting stronger demand for New Zealand venison in Europe. DINZ marketing services manager Innes Moffat told Farmers Weekly that more European trading companies are now seeking supply of New Zealand venison.

Essentially, traders are companies that view products as commodities and seek to make gains based on speculative activities.

This means venison producers need to assess whether a processor or marketer is going to build a long-term venison business – which should mean long-term stable pricing – or play into the hands of these overseas traders by presenting them with the opportunity to buy New Zealand venison without a commitment to building value.

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