Oct 31, 2025
Speaking at last week’s DINZ markets update webinar, DINZ Board director Tony Cochrane said that “where we sit right now, we don’t have a price, similar to most velvet operators in New Zealand,” while also noting that there are stocks currently built up in our overseas markets, particularly China, and that volatility is starting to show. This sets up the 2025/26 velvet season as another complicated one.
“We acknowledge that the current season is setting up to be a challenging one, with prices coming later than usual. Throw in an early spring weather event for some of our producers, and we feel for farmers given the additional uncertainty,” says DINZ CEO Rhys Griffiths.
“As always, our advice remains the same: stick close to your buyers, weigh up your options closely, look to partner with those operators with skin in the game, and keep an eye out for DINZ updates.”
While this time of year is always something of a game of whispers, with the usual pre-season posturing in the market, there are reports of some margin traders trying to drive down prices at the wholesale end again.
On the demand side, South Korea, in the past driven by a booming health food market, has slowed due to the country’s economic headwinds — leading consumers to seek out less expensive substitutes, such as probiotics and vitamin supplements. At the same time, the health food sector is slowing due to a glut of products in the market, meaning more consumer choice. While Health Functional Foods (HFFs) are a promising product category to advance, the reality is that it will take a couple of years for the volumes to lift.
Which leaves China, where there are currently already stocks of Korean-grade velvet awaiting processing. With end use demand in China growing, albeit slowly, this brings with it different preferences for velvet, based on a several factors, including traditional opinions on what makes “good” velvet, as well as the ease of processing and associated processing costs.
“The control of New Zealand velvet still rests in the hands of velvet growers to achieve fair value and not be led down a negative pathway by short-sighted buyers,” says DINZ Board director Tony Cochrane
“Farmers are now cutting rounder, shorter velvet and culling stags based on quality to balance supply and demand, which is going to have a positive impact going forward. Velvet is a niche, high-value product, not a commodity that can be easily replicated.”
November will see visiting delegations from several pharmaceutical companies from both South Korea and China, so there is certainly investment interest in the future of New Zealand velvet as a hero ingredient, but these visits and this interest won’t influence the current season.
In addition, export licensing charges on, with DINZ meeting with MPI, the Trade Minister, and other parliamentarians to push its case. And yet, while we see export licensing as a light touch but impactful intervention to add better discipline and structure to the velvet industry, the earliest it could be in place is the 2026/27 season.
Together, these mid-to-long term developments will see New Zealand velvet’s full potential realised, but today we are a sector facing demand shifts outside of our control, made worse by the actions of margin traders who care little about our industry. Please note, DINZ is focusing on what we can control to give the New Zealand velvet producer more protection against rogue trading and a clear pathway to partners who appreciate the quality of what we produce.
