Post by FWS on Dec 31, 2008 16:24:22 GMT -6
Fur industry fears bear market for pelts
By Lee Greenberg
Vancouver Sun
December 30, 2008
TORONTO — Not even the most remote Canadian trapper, it seems, will be spared from the global economic downturn.
That is the message from one of the world's largest auction houses, which is predicting a bear market for animal pelts ahead of its season-opening sale in Toronto on Jan. 7.
Dave Bewick, vice president of North American Fur Auctions, says demand for what many consider one of the world's purest luxury items has almost disappeared.
"The wheels fell off in September," Bewick said in an interview. "And nobody's really bought any fur from us, nobody's really inquired about fur and nobody really knows what fur is going to be worth this year. The whole economic situation in the world is in a bit of turmoil right now the fur industry is certainly part of that."
Slow retail sales are a big part of the problem. In Russia (one of the two biggest fur-consuming nations, alongside China), the downturn in the markets was exacerbated by an unusually warm fall. The result is many manufacturers — who use fur either for an entire garment like a mink coat or as trim on a jacket collar or cuff — are still holding last year's inventory.
All this could spell trouble for wild fur sales, which are dominated by two Canadian outfits, North American Fur Auctions and Fur Harvesters Auction of North Bay, Ont.
Howard Noseworthy, a spokesman for Fur Harvesters, says the state of the market will become much more clear in the second week of January.
"There would be some nervousness in any industry," he says. "The jury's still out on what happens to us. International buyers seem to be more upbeat about wild fur than they are about ranch fur."
Trapping is one of the oldest activities in Ontario, according to the provincial government. Commercial trapping by settlers dates back to the 16th century, when European explorers arrived on the continent. Aboriginal people were trapping as a way of life long before that. Today, an estimated 6,000 trappers ply their trade in Ontario.
John Fitchett, vice-president of the Ontario Fur Managers Federation, says only about 20 per cent trappers make their livelihood from the pelts they gather, which typically come from muskrat, raccoon, beaver, seal, fox, coyote and fisher.
Most others, Fitchett included, are hobby trappers who supplement their income by anywhere from $400 to $10,000 per year, depending on the trap line, or territory, they cover.
This year, trappers like Fitchett realize they may have to accept less money for their pelts.
"It's a luxury item in North America," he says. "And (in) the European countries it's a must-have, but when their economy's down, they go with last year's (inventory) or the year before."
Nervousness among trappers is justified. A sale in Copenhagen several weeks ago saw only 18 per cent of its minks sold, according to Bewick.
"In a normal year they should be close to 100 per cent," he says. "It doesn't give us a very good feeling for the sale on (Jan. 7). But we have to put the fur together, offer it for sale and see what happens."
Typically a small gathering, Bewick is expecting less than half the normal 100 buyers to attend the January sale. Even then, most will be spectators.
"Everybody's going to lose," he says. "The trapper's going to lose, the fur farmer's going to lose, the auction house is going to lose."
By Lee Greenberg
Vancouver Sun
December 30, 2008
TORONTO — Not even the most remote Canadian trapper, it seems, will be spared from the global economic downturn.
That is the message from one of the world's largest auction houses, which is predicting a bear market for animal pelts ahead of its season-opening sale in Toronto on Jan. 7.
Dave Bewick, vice president of North American Fur Auctions, says demand for what many consider one of the world's purest luxury items has almost disappeared.
"The wheels fell off in September," Bewick said in an interview. "And nobody's really bought any fur from us, nobody's really inquired about fur and nobody really knows what fur is going to be worth this year. The whole economic situation in the world is in a bit of turmoil right now the fur industry is certainly part of that."
Slow retail sales are a big part of the problem. In Russia (one of the two biggest fur-consuming nations, alongside China), the downturn in the markets was exacerbated by an unusually warm fall. The result is many manufacturers — who use fur either for an entire garment like a mink coat or as trim on a jacket collar or cuff — are still holding last year's inventory.
All this could spell trouble for wild fur sales, which are dominated by two Canadian outfits, North American Fur Auctions and Fur Harvesters Auction of North Bay, Ont.
Howard Noseworthy, a spokesman for Fur Harvesters, says the state of the market will become much more clear in the second week of January.
"There would be some nervousness in any industry," he says. "The jury's still out on what happens to us. International buyers seem to be more upbeat about wild fur than they are about ranch fur."
Trapping is one of the oldest activities in Ontario, according to the provincial government. Commercial trapping by settlers dates back to the 16th century, when European explorers arrived on the continent. Aboriginal people were trapping as a way of life long before that. Today, an estimated 6,000 trappers ply their trade in Ontario.
John Fitchett, vice-president of the Ontario Fur Managers Federation, says only about 20 per cent trappers make their livelihood from the pelts they gather, which typically come from muskrat, raccoon, beaver, seal, fox, coyote and fisher.
Most others, Fitchett included, are hobby trappers who supplement their income by anywhere from $400 to $10,000 per year, depending on the trap line, or territory, they cover.
This year, trappers like Fitchett realize they may have to accept less money for their pelts.
"It's a luxury item in North America," he says. "And (in) the European countries it's a must-have, but when their economy's down, they go with last year's (inventory) or the year before."
Nervousness among trappers is justified. A sale in Copenhagen several weeks ago saw only 18 per cent of its minks sold, according to Bewick.
"In a normal year they should be close to 100 per cent," he says. "It doesn't give us a very good feeling for the sale on (Jan. 7). But we have to put the fur together, offer it for sale and see what happens."
Typically a small gathering, Bewick is expecting less than half the normal 100 buyers to attend the January sale. Even then, most will be spectators.
"Everybody's going to lose," he says. "The trapper's going to lose, the fur farmer's going to lose, the auction house is going to lose."
