Velvet farmers face tough season as prices drop 20 percent due to market oversupply

Velvet farmers are facing challenges this season as prices have dropped by 20 percent compared to last year. Many farmers are selling below production costs due to a flooded market after a major buyer in China offloaded excess stock. Access to the Chinese market was restored in October after changes in import requirements. However, the rapid market shift caught farmers off guard, leading to significant price declines. Some farmers are choosing to hold onto their product instead of selling at lower prices. Despite current difficulties, industry leaders believe demand for New Zealand velvet remains strong in China and South Korea.