A red deer stag in velvet. Photo: 123rf
There's huge relief among deer velvet exporters after a deal was done to allow frozen velvet into China this season.
At the end of last year China announced it would stop accepting frozen velvet imports bound for its traditional medicinal market, deciding to use only dried velvet.
Since then Ministry for Primary Industry officials have been meeting Chinese counterparts and managed to secure a deal just as the new velvet season gets underway.
New Zealand exports about $70 million worth of velvet to China each year - most of which is frozen.
Deer Industry Association (DINZ) chief executive Rhys Griffiths said a lot of work went into the deal and exporters are really thankful to MPI.
"Velvet is growing now so it won't be long before exporters head out into the market to negotiate for the coming season so this is really great timing.
"MPI have put together an agreement that has been approved by both sides, but I will breathe a little easier when the deal has been ratified and the first shipments take place."
Griffiths said DINZ was working with a couple of exporters to get trial shipments done soon to work through new protocols and to test the systems are working.
"MPI have really delivered, and a big shout out to them to reacting to this issue quickly. Velvet is growing now and the first shipments will go to China in the next couple of months."
He said there were interesting market conditions in China at the moment but he expected sales to remain strong.
"We're in a pretty good position when it comes to velvet, over the last 10-12 years we've seen the velvet industry grow from about a farmgate $30m industry to $120m and that demand is coming through contemporary health products especially in South Korea.
"In China we've seen these products start to take precedent and back in June we signed a memorandum of understanding with large health company Beijing Tong Ren Tang Co to market our deer velvet products so that's led to growth."