10 Feb 2011

Deer velvet industry warned about fragmented selling system

1:10 pm on 10 February 2011

The latest report on the deer velvet industry says changes to the selling system could be damaging to the industry.

The Deer Industry New Zealand report says things have been less positive in the industry since the Velvet Marketing Limited partnership lost one of its major stakeholders.

The partnership was set up two years ago to handle the bulk of New Zealand's antler sales overseas.

Farmer co-operative Velexco pulled out of the venture late last year, giving up its 25% shareholding.

It will now go alone under a new name, Provelco.

The report says sellers need to be particularly careful this year in how they manage the country's small, niche velvet market.

However Deer Industry New Zealand chief executive Mark O'Connor says the partnership split has not caused any problems yet.

He says the industry body still believes that velvet should be managed onto markets by a small number of strong sellers.