PGG Wrightson-Velconz initiative progressing

10 May 2007

HAWKE’S BAY—The Velconz working group and PGG Wrightson are getting down to the detail of how a marketing organisation for velvet will look. “We’re thrilled by the commitment given by PGG Wrightson to invest and commit its significant resources to play its part in taking New Zealand deer velvet from a commodity item to a true value added niche product” said Ponty von Dadelszen, Chairman of the Velconz Working Group.

“I note that there were some comments by PGG Wrightson in The Press a couple of days ago that farmers would be required to put many millions of dollars up front to set up a marketing organisation. That is not correct and I assume it was mis-reported.

“In fact, the initial plan is more of a change in attitude and responsibility. We’re not talking about ‘bricks and mortar’and we’re not talking about large marketing budgets. All we want to do, initially, is ensure that New Zealand velvet producers are selling their velvet to best effect.”

“The next step is to put a Service Level Agreement in place which will define the role and relationship of PGG Wrightson and velvet producers.

“We believe that PGG Wrightson is a like-minded organisation which understands that what is best for their clients is also best for them. If both parties show good faith and continue to develop trust, then we will have a relationship which will benefit PGG Wrightson, velvet producers, velvet processors and importantly, the end-consumer. That’s what we plan to achieve” said von Dadelszen.

ENDS

Background
* PGG Wrightson currently sells the majority of New Zealand velvet.
* Velconz is a group of concerned velvet producers which aims to ensure that New Zealand velvet is sold so as to maximise value to the New Zealand deer velvet industry.
* The two groups have been working together change the existing velvet selling system to a marketing platform.
* New Zealand is the largest producer of deer velvet in the world. It produces around half the world’s velvet and accounts for about 65% of world trade in deer velvet.