A growing industry. The velvet industry has experienced seven years of strengthening prices and growing production levels. In the 2008/09 season, there was around 440 tonnes of velvet traded that achieved a weighted average price of $59/Kg (implied total farmgate value of $26m).
A standoff between importers and exporters on what price to start the season off on has put the velvet industry on edge as tensions rise with only small volumes traded as of 28 November. Additionally, a changing Chinese regulation will affect importers of NZ velvet and has caused further pressure at this important time.
A key observation by NZ velvet exporters that quality could be more important this year; promotion hits full swing in the key markets as the main consumption season nears; and a whole of industry audit by Chinese regulators gives us a chance to showcase our wonderful industry.