Sep 12, 2025
It has been a busy few months behind-the-scenes in the velvet space as new and updated structures and systems are put in place to help add rigour, discipline and transparency to the workings of the velvet industry. While “structures and systems” may not sound the most exciting, these are necessary pieces of work that bolster the industry’s credibility and professionalism while encouraging good corporate citizenship.
On 1 August 2025, re-registration opened for all VelTrak Accredited Account Owners (AAOs). By 10 September, twenty organisations had submitted their applications. As part of their re-registration, every AAO – typically a buyer, processor, or exporter – must reaffirm their commitment to the updated Terms of Use.
DINZ and the DFA jointly briefed attendees on the changes for the upcoming season at the Annual Buyers’ Meeting in Christchurch on 21 August, where an open and constructive discussion took place. Topics discussed included the pros and cons of mandatory grading standards, the use of MPI-approved RMP facilities, and the timing and mechanics of a potential industry vote on export licensing. These inputs will help inform the work of the Export Licensing Working Group (ELWG) as options are considered.
Export licensing remains the goal longer term but won’t be in place for the upcoming season, says DINZ CEO Rhys Griffiths. That is where changes to VelkTrak’s Terms of Use for the 2025/26 season come in.
“Tightening up VelTrak for upcoming season is really all about making sure systems are working as well as they could be for all,” says Griffiths. “This includes several areas of increased oversight, such as the timely filing of monthly returns, on-time levy payments, accuracy of declared volumes, and chain of custody compliance.
“Now, you can take that as encouraging high-integrity systems or disincentivising poor behaviour, but the result is the same. It benefits the industry when everyone is operating on a level-playing field.”
To ensure a level playing field, DINZ rolled out an expanded verification programme covering AAOs on 1 September and has engaged a new independent external auditor to complete these verifications. The first verification commenced in early September. Selection criteria for verification include past non-compliance, anomalies in data, scale of operation, and intelligence from other sources.
In response to stakeholder requests, DINZ has also introduced new levels of transparency. These involve publishing a list of approved AAOs and will also include the publication of any suspended entities from VelTrak.
This openness has been welcomed both within New Zealand and overseas. It provides confidence to farmers, processors, and exporters that all participants are meeting obligations. Equally, new overseas customers – particularly those forming fresh commercial relationships – are seeking this transparency as a signal of trust.
DINZ continues to advance the case for a stronger, more resilient industry through export licensing. In mid-September, efforts are centred in Wellington with central government and working officials at MPI in evaluating a path forward for export licensing.
DINZ Trade Strategy Manager Damon Paling
“Securing export licensing through legislative change by 1 July 2026 is a highly ambitious goal,” says DINZ Trade Strategy Manager Damon Paling. “The industry is seeking change, and while success is not guaranteed, the work being done now has real value in shaping the future. There are encouraging signs of bipartisan interest and support, giving us the confidence to keep pushing forward. This advocacy is ongoing, and stakeholders are encouraged to ‘watch this space’ for further developments.”
The velvet sector’s credibility is one of our greatest commercial advantages. VelTrak, with its digital chain of custody and independent verification, is a cornerstone of that credibility. When combined with transparent publication of AAOs and active advocacy for export licensing, the industry is taking tangible steps to safeguard integrity, level the playing field, and reinforce our premium positioning in global markets.
“The message from DINZ is clear,” says Griffiths. “Stay on top of obligations, keep records accurate, and use VelTrak as intended. With these measures in place, every participant – from farmer to exporter – can be confident that we are operating in a system we can all be proud of.”
