Mink ranchers enjoy four in a row

SANDY PARKER REPORT, VOL. 31, ISSUE 28, SEPT. 17, 2007
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

Mink ranchers enjoy four in a row

THE 2006-07 AUCTION SEASON, WHICH ENDED LAST WEEK ON A SLIGHTLY EASIER NOTE FOR MINK, nevertheless proved to be the fourth consecutive profitable season for most mink farmers following nearly 20 years of depression. Despite the downward price correction earlier this year – which was followed by a recovery – average mink prices remain well above the levels that ranchers on both sides of the Atlantic would consider break-even. Moreover, the collections offered by all four major auction houses have been completely sold and the clearances of those purchases are described as excellent.

The outlook for continued profitability? At this point, prospects are still considered bright in spite of increasing production in China and elsewhere that could result in profit-threatening competition. The dominant factor continues to be the still-growing demand from the huge Chinese and Russian markets, which have been the primary forces propelling prices upward – and the likelihood that those markets will continue to expand in line with their countries’ booming economies.

AS TO THE GROWING MINK PRODUCTION IN CHINA AND ITS POTENTIAL IMPACT ON PRICES, market veterans don’t see this happening for several years, at least. Their reasoning is that the Chinese, although increasingly using North American and Scandinavian breeding stock to bring the quality of their mink up to Western standards, still have a long way to go. While they have been able to produce some that come close to the new breeders, it is estimated that these amount to only a tiny percentage of the total. At this stage and for several years to come, the belief among experts is that the vast preponderance of Chinese mink production will be in commercial qualities and lowgrades and their main competitive impact will be on those types of goods produced elsewhere, while better Western mink will command even greater premiums.

IN THIS ISSUE:
Ranchers Enjoy Four in a Row
Outlook Also Called Bright
East Europe Seen as New Rival
Finnish Foxes End Up Firm
U.S. Imports Turn Upward

For extracts from back issues of Sandy Parker Reports see News Archive. Subscribers can access an archive of complete issues at www.sandyparker.com.