Feb 20, 2026
As Lunar New Year celebrations get underway and the Year of the Horse begins, China’s deer industry continues to evolve. Speaking from Shanghai, DINZ’s in-market representative Felix Shen says recent developments point to directional momentum, while also warranting careful interpretation.
“China is clearly signalling an intention to professionalise and upgrade its deer and traditional medicine sectors,” Shen says, “but as always, the detail, timing, and consistency of implementation are what matter.”
Jilin Province: The centre of China’s deer industry
As many farmers and processors will appreciate, much of China’s deer industry is concentrated in the country’s northeastern Jilin Province, bordering North Korea and Russia. With a population of around 23 million and Changchun as its capital, Jilin has long been regarded as the heartland of sika deer farming and velvet production. Over the years, several New Zealand processors and larger deer farming operations have visited Jilin and neighbouring regions. and will be familiar with both the scale of production and the long-standing cultural importance of deer to the local economy.
Provincial authorities have stated an ambition to lift industry value, supported by initiatives that span breeding quality, farmer financing and insurance, and a province-wide “one deer, one code” traceability system, currently planned for rollout in 2026.
“Even allowing for optimism, the policy intent is clear,” Shen notes. “China wants greater control, visibility, and consistency across the deer value chain.”
Xifeng and regional policy priorities
Within the broader Jilin–Liaoning deer corridor, Xifeng County in Liaoning Province, with a population of around 42 million people and Shenyang as its capital, has emerged as an important regional hub for velvet processing, regulation, and trade. Local authorities have signalled interest in tax-bonded zones, more centralised import and processing pathways, and regulatory progress toward approving New Zealand velvet for medicinal production, with testing now underway through local universities. These initiatives sit within a wider national context.
Under President Xi’s policy focus on rural revitalisation and “common prosperity”, provincial and county governments are under pressure to lift the economic performance of rural industries and avoid regions being left behind. Deer farming and processing are seen locally as industries that can support employment, income stability, and regional development — provided standards and governance improve.
“That broader policy lens matters,” Shen adds. “When rural development is a priority, sectors like deer farming get attention, but they are also expected to modernise and professionalise.”
For context, where Shanghai sits at around NZ$48,000 GDP per capita, Liaoning Province averages roughly NZ$19,000, while Xifeng County is estimated closer to NZ$6,500 per person, underscoring the sharp economic gradient from China’s leading cities to its rural production regions.
Regulation is tightening but will take time
At the national level, regulatory expectations are clearly rising. From 1 January, certain “pure tonifying” traditional Chinese medicines are no longer reimbursable under medical insurance, shifting purchasing decisions firmly to consumers and increasing scrutiny around quality, safety, and value.
More importantly, new rules taking effect on 1 March 2026 make Chinese product owners clearly responsible for tracking traditional Chinese medicine ingredients throughout the entire supply chain, including imported animal-derived materials.
“On paper, these rules are very clear,” Chen says, “though in practice, the devil is always in the details. Implementation in China is typically phased, locally interpreted, and uneven to start.”
That said, the overall direction favours suppliers that can demonstrate auditable systems, documented specifications, and credible traceability — all areas where New Zealand’s deer industry is comparatively well positioned.
A balanced outlook into the Year of the Horse
In Chinese culture, the Year of the Horse symbolises energy, endurance, and forward momentum — an apt metaphor for the deer sector, where sustained pace, resilience, and steady progress into new terrain drive success.
“China’s deer industry is evolving in ways that suit long-term, high-integrity partners,” Shen says. “The opportunity for New Zealand is real, but it will be won through patience, systems, and credibility, not speed or hype.”
For New Zealand farmers and exporters, the message is one of steady progress rather than sudden change, with China continuing to reward those prepared to engage thoughtfully and for the long haul.
As the Lunar New Year celebrations continue, Felix will be taking a well-earned break to spend time with family and mark the start of the Year of the Horse. He will be back on deck in late February, refreshed and ready to continue supporting our engagement with the China market.
