2008 : The year in review

SANDY PARKER REPORT, VOL. 32, ISSUE 41, JANUARY 5, 2009
The following are highlights from the Sandy Parker Reports, Weekly International Fur News, reproduced with permission. Sandy Parker has been covering the fur industry for over 40 years. For the last 30 years he has published a weekly newsletter, detailing the results of all the major international pelt auctions, wholesale price trends, business developments and movements within the trade, as well as economic and political activities that may impact on it.

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International Fur News
with Sandy Parker

2008 : The year in review

THE YEAR 2008 HAD ITS UPS AND DOWNS: the ups mostly in the prices of skins in line with other commodity increases, while business flagged as a recession took hold in the United States, ultimately spreading around the world. That skin prices soared to new heights even as American and Western European retailers were ordering fewer garments in anticipation of consumer resistance was the result of continued strong buying by China and Russia whose markets were not yet affected by the credit crunch. By the time the financial turmoil reached them, the auction season had ended.

Thus, while the primary markets enjoyed a good year, the world’s manufacturers and retailers found the going rough when the retail fur season rolled around and consumers paid little attention to it. Rising unemployment, reduced incomes and tight credit put the curbs on spending by a wide segment of potential customers.

CHINA BECAME THE LARGEST MINK PRODUCER IN 2008, but that distinction was short-lived. In their haste to increase their crops, Chinese farmers neglected quality. The resulting low prices – and high feed costs – led to slashed production.

But mink prices soared on both sides of the Atlantic, allowing North American and Scandinavian farmers to reap record averages. The explosion in Chinese mink production had caused apprehension among Western ranchers who feared that a huge oversupply would weaken the price structure. Instead, the episode underscored the importance of proper breeding, feeding and maintenance of farmed furs such as mink. In a similar situation – with similar results – China also attempted a major increase in its production of bluefox. The initial effect was a sharp drop in bluefox prices. Finland, the largest producer, cut back its production by 30%, as did the Chinese, and prices of blues have been recovering, but are still described as below production cost.

IN THIS ISSUE:
Skin Prices Hit New Highs
Big Stocks Curb Sales at Fairs
Stores React to Recession Fears
Consumers Cut Back Spending
New Auction Season Opens Lower

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