Provelco

For the first time in the history of deer farming in New Zealand, the grower has a vehicle to look after their interests in the marketplace. The Provelco Prospectus states that “The Issuer was established to work for New Zealand deer antler velvet producers, providing the opportunity to act collectively and bring about consistent and sustained profitability to the business of growing deer antler velvet. These aims will be achieved by developing a strong organisation that is responsive to producer needs with the best possible sales and marketing options”. Over time we have built good relations with our regular buyers in Korea and China, the addition of Marketing Manager David Kim strengthens these relationships. China is a fast developing market, there are excellent opportunities but there is much work to be done to develop these successfully. The focus on quality as a competitive advantage positions Provelco as an ideal supplier for health product companies and has attracted the attention of Korea Ginseng Corp (KGC). This has been an important development for Provelco and we appreciate the strong relationship we have developed with KGC. This includes a supply contract with a fixed price and fixed payment dates for our growers which is a significant step forward from spot business. We are committed to working with KGC and building this type of structured supply arrangement with customers in other markets. Our vision is of a more integrated industry approach that can improve returns and access opportunities by providing a product that meets the needs of pharmaceutical and health food companies.