Why NOW is the Very BEST Time to Buy Elk
A fine heifer bred to Korean Gold for $3,100. A daughter of Dakota Pride bred to King for $3,700. These are just 2 of the incredible deals at the Kansas 2000 Select Elk Auction that left consignors feeling dismayed and buyers feeling giddy with joy.
What's going on here? Was this a fluke? Is it time to panic? Or is it time to get out the checkbook and make some quick deals?
The elk markets fluctuate just like all other markets do. As your stockbroker will tell you, "The wise investor is the one that buys low and sells high." The only reason NOT to buy animals right now is if you are afraid that their value will never rise again. But elk are NOT emu. There is real demand for multiple elk products.
The recent article by Bob Johnson titled Fluctuating Velvet Prices tracked the price of velvet back to 1970 and clearly demonstrated that velvet prices rise and fall. Remember that velvet has been in demand for centuries. It is not a fad on the wane; the price is simply reacting to the poor Asian economy. Knowing that velvet prices last year were very low, it follows logically that breeding stock prices would show softness as some folks hit the panic button and others fear to purchase. All indicators are that velvet prices will make a decent comeback this summer. When they do, breeders will consider their stock to be much more valuable than they currently do.
The elk industry is poised on the brink of incredible growth.
The velvet "crash" last year has actually been a very positive force for our industry long term as it has prompted the creation of new domestic marketing efforts that will bear fruit in the next few years. A small handful of velvet processors has grown to a fistful and cottage vendors are springing up all over. A new documentary about elk farming is being aired on television. Now available in bookstores is a new book that explains in very simple and understandable words WHY velvet works.
The other elk markets are also benefiting from the wakeup call generated by last year's low velvet prices. Trophy bulls have been selling well as demand from hunting reserves continues to grow. The meat market is being tested. Its maturing can only help to further stabilize prices in all markets. Implementation of the Elk Quality Assurance Plan, scheduled for February, establishes the standard of "quality" and moves the industry closer to legitimacy in the eyes of the consumer as it ensures product safety. It signals the maturing of the industry.
There really has never been a better time to buy! Don't wait until next year - unless you want to buy high.