The New Zealand and South Korean deer industries have agreed to stop locking horns over exports of antler velvet to Korea.
image:15858:half]
South Korea remains New Zealand's number one market for deer antler velvet, used in traditional medicines and health products.
It takes more than 60 percent of New Zealand velvet production either directly, or through China.
Korean deer farmers had traditionally been opposed to imports from this country, but Deer Industry New Zealand (DINZ) said that had now changed and the two would work together to grow the Korean market.
Deer Industry New Zealand chief executive Dan Coup said the Korean Deer Breeders Association used to be strongly opposed to velvet imports, but that opposition had been breaking down in recent years.
"In the last few years we've had quite a positive response from the Korean Deer Breeders where we feel we're in a situation to really move forward in a partnership with them."
He said a memorandum of understanding has been proposed with Korean Deer Breeders Association which will be worked on over the coming months.
Reduced velvet supply in Asia and North America and an outbreak of foot and mouth disease in South Korea means that country is short of velvet for traditional medicines and health foods. Korean deer farmers now acknowledged the need for foreign supply to meet the demand there.
DINZ estimated 20 percent of New Zealand's velvet production went into health-foods and tonics in South Korea.
Dan Coup said the retail value of those products was now more than $US100 million a year, with one children's tonic alone taking about 8 percent of New Zealand's velvet output.
He said that had helped to lift the farm gate prices for velvet from an average of $60 a kilogram six years ago to nearly $100 a kilo in the season just ended.