Breeder Finisher Weaner Contracts

Breeder Finisher Weaner Contracts

Weaner sales contract.

 A contract between breeder and finisher is drawn up initially setting the base price for weaners on 50 per cent of the current venison schedule at the time of selling (March) multiplied by the weaner live weight.  This is the first part payment and would consist of around 85 per cent payment.  It is agreed as to when the deer will be killed (say November and December).  The average of the venison schedule is taken for November and December (when known) and multiplied by 54% (the average carcass yield) and multiplied by the original average live weight of the weaner.  This figure is now the total price paid per weaner.  The original payment is then subtracted from the final value to give the second, or top up payment.

Weaner sales contract: step by step

Step 1: Find a breeder or finisher to work together with

Step 2: A contract between breeder and finisher is drawn up initially setting the base price for weaners on 50 per cent of the current venison schedule at the time of selling (i.e. in March – e.g. $7.50) multiplied by the weaner live weight (e.g. 52kg).  
example:  52kg x $7.50 x 50% = $195   (first payment)

This is the breeders first part payment and would consist of around 85 per cent of the total payment. 

Step 3: It is then agreed as to when the deer will be killed (say November and December).

Step 4: The average of the venison schedule is then taken for November and December (when it is known, for this example we use an $8.20 average).
Multiply by 54% (the average carcass yield) and then this is multiplied by the original average live weight of the weaner (which was 52kg).
example: $8.20 x 54% x 52kg = $230.25

This figure is now the total price paid per weaner.

So to get this figure we take the original payment (of $195) and subtract it from the final value ($230.25) to give the second, or top up payment.
example:  $230.25 - $195 = $35.25 (to be paid out as second payment, or ‘top-up’)

Image below indicates the situation and values for both the breeder and finishe given a $8.20, a $7.75 and a $9.00 slaughter schedule in Nov/Dec

 For an interactive version of this spreadsheet contact DINZ on 04 473 4500 

 

Other points to note:

There are other elements to the contract that can be tailored to each unique busines relationship.
Some examples of this include when ownership is taken of the stock, e.g. "The breeder must take responsibility for any deaths for the first 72 hours post departing properrty".
Animal Health requirements e.g. "All stock to be Yersinia vaxed 2 weeks before transporting to finishing property".

Deer Industry New Zealand has sought the infomration displayed above from deer producers involved in such contracts and this information has been published with their prior agreement. DINZ however does suggest that any contracts entered into be reviewed by a professional in the field of contracts or another independent party, and advises that legal advice be sought before entering into any binding agreement.