2007 roundup: Further growth for global retail

SANDY PARKER REPORT, VOL. 31, ISSUE 43, JAN. 7, 2008
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
2007 roundup: Further growth for global retail
THE YEAR 2007 WAS A YEAR OF FURTHER GROWTH OF THE GLOBAL RETAIL FUR MARKET, due principally to the still-expanding Russian and Chinese markets and those countries’ soaring economies. The year also saw further increases in world production of mink and other furs to satisfy those new demands. At the same time, however, the long upward spiral of mink prices came to an abrupt end as the Chinese trade, although booming, found it difficult to make profits at those levels.
AT THE RETAIL LEVEL, THE 2006-2007 WINTER SEASON FELL SHORT OF EXPECTATIONS IN MANY AREAS, largely because of unseasonably mild weather. Sales in North America and Western Europe were particularly disappointing, but business in China and Russia held up better because of the demand by new customers now able to afford such luxuries and for many of whom weather was not a determining factor.
MINK PRICES CONTINUED TO RECOVER FOLLOWING THE SHARP DECLINE IN FEBRUARY, but there was still some apprehension over reports of a huge production increase in China. In the absence of official figures, trade estimates were that China had surpassed Denmark as the world’s largest mink producer with a crop of as much as 20 million pelts. Depressed bluefox prices attributed to Chinese overproduction caused Finnish farmers to reduce their crops by 30%.
THE VALUE OF THE U.S. DOLLAR CONTINUED TO SLIDE IN 2007, making it more difficult for Americans to buy abroad, but facilitating purchases by those with stronger currencies. At the same time, the Canadian dollar climbed to its highest level against the greenback in 30 years, even surpassing it in value. This not only eliminated any currency advantage enjoyed by American retailers buying from Canadian manufacturers, but also put a squeeze on vendors at the Montreal fair who would now be paid in weaker dollars.
IN THIS ISSUE:
Big Stocks Curb Sales at Fairs
Soaring Mink Prices Readjust
China Leads in Mink Output …
… but Is Reported Cutting Back
U.S. Drops Bid-Rigging Probe
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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