http://www.furharvesters.com/pdf/marketforecast0910.pdfForecast for wild furs:
December 12, 2009
Wild Fur Market Review
Last year at this time things started to fall apart in the financial world. A full year has passed now and
things are not back to normal: however, there have been improvements and it seems interest, as well as
the much needed confidence, is beginning to return to our business.
Having just returned from Russia and spent time with customers and visiting many fur shops, I can say
business remains difficult but sales are picking up as winter has finally arrived. The months of fall are so
important as these are the top months in fur coat retail sales. Russia experienced a fall that was milder
than normal and this impacted on an already difficult market. Yet fur is so highly regarded and loved
by the Russian people that there is no question once their economy strengthens people will begin to
purchase again. Russia`s oil prices have climbed back up to acceptable levels and this will certainly help
stimulate confidence along with their strengthening ruble.
China has been the one place where the fur trade has continued to roll along in a positive manner. The
months of October, November and December are said to be the coldest ever, and with snow coming early
as well in the key centers such as Harbin, Beijing and Shenyang, has helped in realizing very strong retail
sales. China is the largest buyer of ranch mink and sales are very strong even now, and this will transfer
over into certain wild fur items. This is definitely the case with muskrat as calls into this office have been
heavy over the past month from current and new customers from China.
The Beijing Fur Fair is one of the world`s largest and FHA will once again be attending and participating
at this important venue. For the past several seasons we have been able to draw new customers through
our effort at this fair, be it the seminars we give, or by greeting the many hundreds that stop by our booth
daily.
There have been some recent bankruptcies and closures that have affected the trade, with one very
recent bankruptcy hitting all the world’s auction houses with some being in the MILLIONS of dollars.
We are happy to report FHA was hurt with only a few hundred dollars in losses by this. Our policy on
responsible business practices and goods being paid in full before shipping is what keeps us financially
grounded during all times. This facility is 100% free and clear. Owning one’s real estate in times like this
is a godsend if compared to those tied to huge leases and mortgages. Financial strength and stability
is tested from time to time and being the largest isn’t what gets you through, it’s remembering who you
represent and are working for, and applying responsible financial decisions at all times and avoiding risks
that get you through such times.
It is our shippers in times like this as well that are needed as production always falls off in down
markets. FHA sets the stage once again this coming January 9th 2010 with the first wild fur offering to the
world. Ship with pride and sell with confidence in knowing the vast majority of the staff here are trappers
themselves and respect each and every shipper no matter how big or small.
Wishing all of you a very Merry Christmas and New Year.
Respectfully,
Mark Downey
Chief Executive Officer
Beaver
A short catch is predicted and this, combined with low inventories at the manufacturing level, should
help this struggling article. North Bay has always been considered the source of the world’s finest
beaver and when price increases occur, it will begin with FHA. Castoreum will remain at the highest
levels since the late 80’s.
Muskrat
FHA’s previous prediction of increased prices for this item is being further pushed upwards by the
positive retail sales in China due to the extremely cold fall they have encountered. We STRONGLY
encourage trappers to target this article.
Otter
Prices are expected to continue moving upward as many manufacturers continue to see tremendous
value in this item.
Marten (Sable)
Fur Harvesters Auction’s superior collection continues to bring industry leading interest and results for
our shippers. Expect the greatest demand for the darker, heavier skins.
Fisher
Fisher has always been highly regarded as a trim item, and interest is expected to improve in line with
improved interest for European ranched fox (trim).
Wild Mink
Clearances and prices will start to recover as ranch mink sales are strong.
Raccoon
At this point we have seen little sign of recovery. However, the heavier sections should start to see
interest as other trim species such as ranch blue and silver fox have been doing better lately.
Coyote
Demand for the better quality skins from the heavy western sections as well as heavy eastern. Low
grades will likely continue to have little commercial value.
Red Fox
Expect good demand for heavy and semi-heavy sections of eastern Canada and northeastern U.S.
Centrals and westerns will sell at lower levels.
Wolves
Arctic and northern wolves handled specifically for the taxidermy trade will once again command high
prices. Commercial grades and skins prepared without claws will sell at a much reduced level.
Wolverine
Like wolves, pelts prepared for the taxidermy trade will again this season bring high prices.
