Wild Fur Market Forecast
- 2016-2017 Wild Fur Market Forecast
- Many Trappers that have been in this game enough years have seen the fur market peak and then fall off. What makes this situation different from the last market drop is that fur is in fashion more than ever. Our two main markets remain Russia and mainland China and both these countries have political and economical issues they are working on resolving. Once resolved, prices will take off. The question is when will we see the market head upwards. We have seen very fast recoveries before and in the case of China it can happen very quickly.
- China has the 2nd largest economy in the world, second only to the United States of America. China has a populous of an estimated 1.4 billion, with a growing middle class that has been enjoying buying luxury goods the past decade. China needs a good start to winter and it is not unrealistic to expect some wealth to flow down to fur coat purchases and other fur products.
- Russia's problems are different and have a political component that involves the EU/ USA not to mention their currency the Ruble has very little buying power outside their country. As oil prices strengthen so will the Ruble. This being said the hunger for fashionable fur coats in Russia remains. These shops need to have inventory hanging on racks and fur needs to be bought this coming season to replenish sales. The Russian market will come back stronger than ever most believe once the political playing field is cleaned up. Fashionable clothing is always a top priority to the women of Russia and this will not change. We have been hearing reports that business is picking up in Russia
- We are confident that the 2015-2016 season was the bottom of the market and price levels will now begin to head in a Northern direction. The 2 European auctions September rounds saw ranch mink increase 10% to 15% which is an indication of a better year ahead. More importantly there will be a reduction in the world's mink crop this year. 1st time in over a decade. We currently have very little inventory left over from last season. Historically this has proven to bring about positive results going into a new selling season.
- We continue to have interest in beaver of all sizes and grade, plus castor prices are very strong. We also see improvements on muskrats taking place with our opening auctions. Sables continue to be a sought after luxury article as well as western cats and female fisher. Heavy coyotes are going to be in demand as a trim item once again, but a cold winter will help in North America
- Wild fur is our bread and butter, our pickup schedules and sale dates reflect that we are staying the course and have cut back very little as it pertains to customer service.
- Our March auction is once again in Finland and we have a great deal of buyers committed and confirmed already with orders for our wild goods. Russians with orders will fill them at this time as we will only be 30 minutes away.
- No one can predict when the industry will take off again but we all know it will in time as we have seen this cycle many times.
- However we trappers are blessed as we enjoy what we do and we do it in the best of surroundings. Not many other professionals get to work and spend their days in the wilderness breathing clean crisp air.
- Keep the faith and thanks for your loyalty to this great industry and this fur auction facility.
- Mark Downey
Chief Executive Officer
Fur Harvesters Auction Inc