From the beginning of this year to September, thousands of fur companies in our country have closed down, and the fur, which has always been called "soft gold", is not selling well this year.

What happened in the fur industry?

1

Hebei fur prices fall year after year

Selling a fur loses 80 yuan

　　Suning County in Hebei is the country’s largest fur trading center, trading up to more than 500,000 furs a day.

However, due to the impact of the epidemic this year, both transaction volume and transaction value have fallen sharply, with only a few hundred thousand furs traded every day.

　　Shangcun Fur Trade Market, located in Suning County, Hebei Province, is one of the seven largest fur markets in my country.

Since the epidemic this year, the entire market has looked a bit deserted.

August and September have always been the traditional peak season for fur trade, but now only the few days of the monthly market are lively.

　　The wholesaler told reporters that since 2013, fur prices have plummeted.

From 2015 to 2019, the price of fur rebounded slightly, but this year's epidemic has brought the slightly improved industry back to the freezing point.

As many shops import furs from abroad through auctions, the sales markets are mainly high-latitude countries, such as Russia, Norway and Finland. The stagnation of foreign trade has greatly affected sales.

　　Mr. Lu, a wholesaler at Jingnan International Fur Trade Market, Shangcun, Suning County, Hebei: This fox skin sells for 1,000 yuan. When the market is good in 2016, it sells for about 1,500 yuan. It was 1,080 yuan for a picture taken in September of the previous year. Lose a little for the price.

　　The sale of fur is not about buying and selling. Most wholesalers received the goods last year. Affected by the epidemic, the price of fur this year is not ideal, but in order to withdraw funds, they have to sell at a loss.

Wholesalers usually use gestures to negotiate prices.

Because of the difference in quality and size, the price of each fur is also different.

　　Industry insiders told reporters that although the demand for fur has gradually increased in the fall and winter, since export sales are almost stagnant, wholesalers can only rely on the domestic market, and the overall supply of fur still exceeds demand.

　　Li Jing, general manager of Jingnan International Fur Trading Market, Shangcun, Suning County, Hebei: In the past, the raw leather trading market had annual turnover of about 4 billion yuan, but this year was affected by the epidemic.

It is now a peak sales season, but this year’s peak sales season is relatively weak, because the number of orders has decreased, especially after the cancellation of orders for export, the number of orders for domestic sales has not increased significantly.

2

Farmers sell a raccoon dog and lose 50 yuan

Vicious cycle of breed improvement

　　Since 2013, the fur industry has gradually entered a cold winter. Although there has been a slight recovery in recent years, this year's epidemic has completely disrupted the pace of industry recovery.

For fur wholesalers, the purchase price is higher than the selling price, so many merchants have suspended the purchase of fur.

What about the farmers?

　　Not far from the Fur Trading Center in Suning County, Hebei, is Zhang Tiecheng's farm.

In 2003, Zhang Tiecheng, a fur wholesaler in Dalian, took a fancy to the high benefits of fur farming and devoted himself to it.

　　Zhang Tiecheng told reporters that he currently has 5,000 foxes and raccoons in total.

The fox can only sell for about 300 yuan each, while the price of a raccoon is only 200 yuan.

　　Zhang Tiecheng, a raccoon breeder in Suning County, Hebei: Not counting labor, the cost of raccoon is about 200 yuan, plus labor is about 250 yuan, and the cost of fox is about 300 yuan. Now they are all at a loss.

A fox or raccoon loses about 50 yuan.

Due to low profits, the scale of local farming has been decreasing year by year in recent years, and this situation does not only occur in Hebei.

Data show that in 2019, the number of domestic mink skins was 11.69 million, a year-on-year decrease of 43.61%, and the number of fox skins was 14.43 million, a year-on-year decrease of 17.02%.

　　Zhang Tiecheng told reporters that in the past few years when the market was good, farmers would introduce high-quality breeds to breed foxes and raccoon dogs, but now the breeding is not profitable, and most farmers adopt self-reproduction and self-raising methods, and this method makes it difficult to improve the quality of fur .

The quality of domestic fur is lower than that of imported fur, and it is more difficult for foxes to be sold at a good price.

　　Industry insiders told reporters that due to differences in quality, fur processing companies are more willing to buy foreign furs through auctions.

Domestic farmer sales have further declined, causing a vicious circle.

At present, there is no one in ten domestic retail breeding.

3

The price of fur apparel dropped by 60% in 7 years

Future supply and demand may gradually balance

　　Fur, which was once a luxury item, is now in a dire situation. What are the reasons behind the industry?

What happens to finished fur garments when farmers and wholesalers are losing money?

　　The reporter learned in the interview that the decline in fur prices in recent years is mainly related to supply and demand.

Due to the low threshold, a large number of farmers and wholesalers entered when the fur industry was more profitable in 2013 and 2015.

Supply is far greater than demand, which causes prices to fall.

　　He Sucheng, Vice Chairman of Huasi Holdings: Originally, China was the world's largest fur consumer market, and Russia was the second largest fur consumer market. With the decline of the Russian economic market, the consumption of fur as a whole declined very much, which can be said to be 100 %, it's now down to 20%.

In a short period of time, the supply of raw materials worldwide has exceeded demand.

　　In Fur City in Suning County, Hebei, a merchant told reporters that although the peak season for ready-to-wear sales has not yet entered, based on the current momentum, the situation this year will not be too bad.

　　Due to the drop in raw material prices, the price of finished clothing has also fallen sharply. At present, the price of fur clothing is generally lower by more than 60% when the price is relatively high. Merchants told reporters that after the price reduction, the sales volume increased significantly.

　　Wang Zhanjun, a merchant in Huasi International Fur City, Suning County, Hebei: I just started selling 300 pieces and 500 pieces in 2014. Now I sell more than 1,000 pieces, more than 2,000 pieces, or more than 3,000 pieces. The price has dropped and the sales volume has increased.

　　This piece is now about 7,000 yuan and 8,000 yuan, and in 2013 it was more than 20,000 yuan.

　　Industry insiders told reporters that although it is now called the low period of the fur industry, from the perspective of clothing sales, the domestic demand for fur apparel has not declined.

With the reduction of fur inventories and the abandonment of fur breeders, fur supply decreases. In the next two years, fur supply and demand will gradually balance and prices will rise.

The fur industry will also pick up significantly and usher in new development.