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Fur industry in for a major upheaval

Mar '08
A number of specific animal fur and skin are doing wonders in the Chinese market selling at pretty stable prices.

For instance, Marten skin of about 89 centimeter sells at a price of around 290 yuan while that of a female marten would costs nearly 120 yuan. Similarly raccoon dog skin measuring 95-100 centimeter values at 130-160 yuan

Prices for arctic fox skin are very high due to insufficient stock and ranges between 300-340 yuan for every 95 centimeter.

On the other hand prices for silver fox skin of 100 centimeter stands somewhere around 400-460 yuan.

Moreover, the stock of beaver rabbit skin is also inadequate but quality problems have kept the prices of the general cargo bargaining at 30 yuan.

However, it is surprising to observe that in spite of these specific goods bringing in a fair income, the overall fur trade in the domestic market this year has been very disappointing.

Reports of high profits in animal husbandry in 2006 inspired a number of farmers to enlarge their scale of breeding fur animals. But negative factors like erratic winter and declining rebate rate badly hit the fur business in China.

Small scale farmers were the worst affected since their furs were constantly devaluated. Besides, even those who managed to clear their stock at an early stage with low prices, suffered a 20 percent loss.

Losses were unbearable for those who realized the situation much later. Some of the dealers nearly lost all oftheir profits that was garnered after years of hard work.

In fact, enterprises indulged in selling fur garments also had to bear the grudge of unprecedented circumstances as most of their stock remained unsold.

More than 30 percent of the Chinese fur processing enterprises closed down in 2007. Experts believe that the industry will take nearly three years to recuperate from this devastating situation.

Fibre2fashion News Desk - China

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