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Velvet market development

As well as targeting core markets to grow NZ velvet consumption, DINZ’s velvet market activities also include working with domestic policy groups (for example regulatory, science and trade policy as it relates to velvet production). It is essential that in developing core velvet markets, we ensure the pathway to that market is as clear as possible.

Strengthening the New Zealand Velvet “Ingredient Brand”

New Zealand velvet has gained a reputation as a premium ingredient in contemporary and sophisticated health food products in South Korea. In China, prestigious companies are recognising the value New Zealand velvet might play in their respective products.

Over the last ten years, the New Zealand velvet industry has grown significantly. For the year ending Sept 2009 farmgate returns for velvet were estimated to be $26m, whereas for the year ending September 2019, farmgate returns reached $106m. This has been achieved through ensuring clear market access, good connections with importers and most importantly strong in-market partnerships with sophisticated and like-minded market driven companies.

The reputation of NZ velvet is based on:

  • Its consistent quality and safety as a health food ingredient.
  • Government oversight of all aspects of velvet removal, handling, transport and processing to ensure it complies with NZ Food Safety Protocols.
  • Our relatively clean environment, compared with other parts of the world.
  • Professional free-range farming systems.
  • Strict animal welfare controls with high standards that farmers and veterinarians must meet when humanely removing velvet.
  • New Zealand's freedom from many animal diseases found in other parts of the world.
  • The credibility and professionalism of the whole industry. 

2020-25 work plan

Confidence in the velvet industry over the last ten years has resulted in increasing production levels. We need to secure new markets to ensure continued sustainable growth of the industry. For 2020-2025 DINZ will:

  • Continue strong partnerships with leading Korean food companies to promote New Zealand velvet as a premium ingredient.
  • Develop partnership opportunities and with key Chinese food and pharmaceutical companies to boost the velvet category in contemporary food products in China.
  • Ensure New Zealand velvet remains a prominent preference by Korean Oriental Medicine Doctor sector.
  • Work on other geographic markets that fit with the industry’s key target audience.
  • Fund research to support health claims that can be used by all market participants.

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