Deer industry expansion and wealth creation

Abstract

The New Zealand deer industry is projected to grow strongly over the next decade with venison and velvet production forecast by some models to increase by 16740 tonnes (67%) and 300 tonnes (60%), respectively, in the next four years alone. Commensurate growth in high paying markets is required to prevent these raw materials becoming commodities with associated downward pressure on prices achieved by the industry. Furthermore, growth in supply will generate increasing volumes of co-products, for which market opportunities need to be developed. The deer industry is thus following the classical technology S curve and requires further innovation to maintain wealth for its participants. The industry has worked with research providers to develop a R&D strategy to counter commodification, by supporting the expansion of the industry into year-round chilled venison products into niche markets and developing new enterprises from deer co-products. DEEResearch was formed to provide research direction and increase effective industry investment into R&D through better coordination of research and a combination of funding directly from the industry and additional funds leveraged from other sources. As a relatively small industry, the deer industry faces the challenge of assembling the critical mass and investment necessary to support expansion. Crown funding is critical to overcoming these constraints and the industry's progressive and united vision is important in securing this. Keywords: Deer industry, research coordination, strategy