UK DEMAND for venison will grow by 10% in 2017 – but the sector's high operating costs mean that many of the farmers now trying to grow deer herds, or start new ones, are struggling to keep up with that demand.

As a result, around one third of venison sold in the UK is imported, despite many processors and buyers preferring to stock the domestic product.

Charging into this gap between supply and demand, the Bank of Scotland this week unveiled a new range of finance options tailored to the venison industry, designed to help farmers overcome the financial barriers to establishing or growing their businesses.

The Venison Advisory Service has advised the BoS on how to structure financial support to help farmers manage the income cycles that are unique to deer production. A key feature are 'repayment holidays', under which farmers do not need to pay for their livestock until they are producing actual income.

BoS agriculture director Sandy Hay said: “The increase in demand for venison has created opportunities for UK farmers but starting or growing a farm is not always straightforward.

“There can be a period following the establishment of a new herd where the deer are calving, then maturing, but not yet generating income," he observed. "Our venison finance products will alleviate working capital pressure and free up cash that would otherwise be tied up in new livestock.

“Based on our deep understanding of farming and the nuances of the venison industry, we are meeting a specific need in a niche sector," he said. "We hope that this specialist finance will support and encourage farmers to expand in a growing market or start a new venture.”

Scottish deer farming pioneer, Dr John Fletcher, now a director of the Venison Advisory Service, said: “The UK venison market is growing significantly with demand currently exceeding supply. This has created a real opportunity for those considering setting up a commercial deer farm as a business venture or an additional revenue stream. It’s great to see Bank of Scotland creating tailored products to support these farmers.”