Revised November 2007 by Diane Huntrods, AgMRC, Iowa State University.
Overview
Elk (Cervus canadensis) are typically grown for their antler velvet, the soft new growth on antlers. The velvet is harvested in early summer and then frozen, dried and sold. In the United States, elk are also know as wapiti (whop eh tee), a Native American word for elk.
Commercial elk production has been taking place in North America since the late 1800s. The North American Elk Breeders Association's conservative estimate is that over 100,000 captive elk are currently farmed or ranched in the United States. Elk production actually spans the globe, with the heaviest concentrations in New Zealand, China, Russia, United States, Canada and Germany.
Demand
Growth during the early 1990s was fueled by an increasing demand for antler velvet. The market was also supported by other elk products such as meat, leather and related goods. By the late 1990s, difficulties in the Asian economy drastically reduced the demand for antler velvet.
During this same time frame, the industry faced major concerns about Chronic Wasting Disease (CWD), a brain-degenerating disease similar to BSE in cattle. In 2002 Korea, the industry's primary importer of velvet, closed its borders to velvet trade because of concerns about CWD. Proactive and preventative measures were put in place to minimize the risk of disease transfer, but the economic impact dropped prices significantly.
Current status of CWD
Since CWD was first discovered in U.S. captive herds in 1997, extensive testing of those herds has resulted in less than 30 positive results. In these cases, a combination of quarantining or depopulation was used to control further infestation.
To date, CWD has been found in captive elk and/or deer in nine states (Colorado, Kansas, Minnesota, Montana, Nebraska, New York, Oklahoma, South Dakota and Wisconsin). The disease has also been found in wild elk and/or deer in eleven states (Colorado, Illinois, Kansas, Nebraska, New Mexico, New York, South Dakota, Utah, West Virginia, Wisconsin and Wyoming). In response, all but one state enacted strict new regulations that augment federal regulations. These regulations range from additional testing requirements to the banning of all elk and deer imports.
As of April 2007, 42 states test captive elk and/or deer for CWD in states where elk and deer farms are legal. All 50 states perform CWD testing on wild elk and deer. In addition, 22 states have banned all elk and deer imports, and 32 states ban or restrict the importation of hunter-harvested deer and elk parts. Finally, 28 states prohibit the importation of elk or deer from any county, region and state where CWD is prevalent; require that the state exporting the animal be enrolled in an official CWD monitoring and certification program; and/or only require that CWD has not been diagnosed in the exporting herd or imported elk or deer.
Since state regulations to address CWD vary, contact the appropriate state agency (Department of Agriculture or Department of Fish and Game) to confirm the regulations in your state. For an overview of each state's current CWD regulations, see this Web site: http://www.ndow.org/wild/health/cwd/CWD_state_regstable.pdf.
Product
Demand remains high for elk breeding stock and for elk trophy hunting. Operating and processing costs continue to rise for venison, while domestic sales of velvet are allowed but complicated by interstate regulations.
Breeding stock
Genetically sound females commonly bring between $1 and $5 thousand dollars; bulls typically are valued at about half that of the females. With movement restrictions, these prices have dropped in just a few years.
Trophy hunting
Sport hunting has increased the demand for trophy animals on hunting preserves.
Venison
Elk meat is considered to be of superior quality. A single serving has less than two grams of fat and less than 150 calories, which is considerably leaner than comparable beef cuts. Compared to beef, elk meat commands a premium price.
In New Zealand, elk producers are marketing a niche venison product they call Cervena. This premium farmed venison is distinguished from other venison by a trademark that ensures the meat has been naturally produced and processed according to internationally recognized quality standards. To qualify as Cervena, the animals must be three years old or younger, given free range on farms ranging from 200 to over 2,000 acres, fed grass with natural supplements such as hay, and free of any hormones or steroids. (For more information about Cervena, see their Web site: http://www.cervena.com/.)
Antler velvet
Antler velvet is the driving force behind industry growth. Antlers are a renewable product that can range in price from $30 to $100 per pound, with a mature bull producing 15 to 40 pounds of velvet yearly. In Asia, velvet has been used for more than 2,000 years as a natural remedy for a variety of remedies including reducing inflammation, improving body metabolism, enhancing immunity and improving blood--liver and kidney function. It is also regarded as a potent aphrodisiac. The product is often sold as a powder or exported frozen for processing later. Velvet or a product derived from velvet is being researched as a wound-healing product and as a nutritional supplement for athletes.
Other products
Leather products and hard antler products, such as jewelry and decorative accessories for the home, also add value to the animal. Other elk products, such as tails, leg sinews, ivories (eye teeth) and organ meats (liver, kidneys, hearts) are under consideration for future market expansion.
Competitive Products and Intensity
Prior to the slowdown created by CWD, the industry was considered in a growth stage with easy entry into the business and relatively open access to markets. Many producers opted to sell product through grower organizations or reputable brokers who accumulated volumes of antlers large enough to export or sell into domestic processing facilities.
As concerns about CWD subside, North America is in a build-up phase for herd numbers. There is additional separation in the price of breeding stock based on genetic and reproductive traits deemed favorable in the commercial herd. As total herd numbers are increased, prices for breeding stock will likely remain high.
New Zealand and China are large producers of velvet antler and will continue to be a competitive threat to North American production because of their absence of CWD. Although there is no proof that CWD can be transmitted to humans, the perception and uncertainty that hang over the industry continue to impact markets.
Government Regulations
USDA's Animal and Plant Health Inspection Service (APHIS) implemented a CWD program in 2001 that purchases positive and exposed elk from CWD-infected herds. The program also increased surveillance and diagnostic testing for CWD, and training for producers and veterinarians. Currently, there is no live animal test or vaccine for CWD.
State and federal regulations related to inspections, processing and marketing apply to elk as they would with all other meat products.
In 1999, elk antlers were put on a list of commodities covered by the GSM-102 export credit program, which helps expedite trade in several Asian markets.
Profile written December 2005 and revised November 2007.