This episode featured as part of the Agribusiness segment in partnership with BNZ.

Provelco expects returns percentage increase to be ‘well into the double digits’ for velvet this season, even as production falls to about 800t, chief executive Darryl Stretton says.

Fresh from Vitafoods Asia in Bangkok, where attendance jumped 30%, Stretton says velvet is moving from traditional Chinese medicine into mainstream nutraceuticals.

“Demand, which has been influenced by science and peer-reviewed articles and findings, is outstripping supply, which bodes very well for a New Zealand market,” he says.

Output is down from near 1,000t last season after two seasons of weak pricing, farmers exiting and stags culled.

“Right now for us you could argue supply is a constraint, so we can sell every kilo we can get our hands onto.”

China and Korea remain the largest markets, with a new free trade agreement opening Vietnam and North America in the company’s sights.

“The opportunity is just so large, but obviously we can’t spread ourselves too thinly.”

This episode featured as part of the Agribusiness segment in partnership with BNZ.

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.