As auction houses and fur buyers react to the closing of NAFA, the trapping industry will never be the same.
By Serge Lariviére
The year 2020 will be a year of change, and we can probably state that the greatest uncertainty about the fur market is happening right now. As you read this, the entire industry is in turmoil, and there has been major shuffling of all long-time industry players.
As I am sure you have heard, North American Fur Auctions (NAFA) faced some major financing challenges in 2019, and the oldest fur auction in North America was forced to get out of the wild fur business for 2020 — this year. As soon as the news was out, most all of the other industry players are fighting to try and captures the market shares that NAFA dropped. Imagine this: more than 15,000 wild fur trappers that historically shipped to NAFA now have to find a new place to sell their skins. Many of the trappers that shipped to NAFA in past years were big trappers, and the company even had an association of the “large-volume” trappers, a group called the “Wild Fur Shippers Council,” which I must disclose, I was involved with as a Board member.
Trapper & Predator Caller fur market expert Serge Lariviére.
Regardless, these 15,000 or more past clients of NAFA are now looking for a new place to sell their skins, and a few of the bigger players are trying to capture those skins. First and foremost, Fur Harvesters Auction in North Bay, Ontario, the only auction house remaining for wild fur in 2020, has issued several press releases to announce their desire to help trappers market their skins. Fur Harvesters Auction has acquired some of NAFA’s assets, some of the staff, and they have expanded their pick-up routes and schedules.
This company will undoubtedly grow much bigger in 2020, and their larger size should attract even more buyers to their auctions, which is always a good thing. The company announced two major auctions in 2020, March 28 to 31 and May 30 to June 2, both auction scheduled to be held in North Bay, Ontario, at least at this time. Keep an eye on their website (www.furharvesters.com) for the latest news, or to see their collecting routes and pick-up schedules.
Another big industry player, Groenewold Fur & Wool Co., a longtime and well-known fur buying company operating out of Forreston, Illinois, has also announced some moves to try and obtain some of the skins that were previously sent to NAFA. Groenewold’s website (www.gfwco.com) also lists fur route schedules over much of the United States, and now even in Canada. This company is a fur buying company, not an auction house, so the sold are sold and paid for on the spot. Historically, this company did most, if not all, of its buying in the United States, but their Facebook page has now announced many buyers operating in Canada, so this company is hoping to establish a firm clientele in Canada, as well.
No doubt that some of the biggest trappers in both countries will be contacted by both companies, as this is a golden opportunity for companies that wish to expand.
But big companies are not the only option. A lot — make that most — local fur buyers have also been increasingly active in soliciting fur. Again, all trappers that were historically loyal to NAFA now have to find a new outlet — and all options are open. Many of the local buyers in my home province have been calling trappers, putting out announcements on social media, sending emails or attending trapper meetings, all in the hopes of increasing business.
What does this all mean?
First, let me say this: There has been no improvement in the overall fur market. Coyotes and top bobcats will sell well, and there is some slight improvement in the price paid for muskrats and raccoons, but many of the species that struggled in past years will still struggle. River otters, wild mink, red foxes, even pine martens and fishers will not change much in prices. The only good news we have is that some buyers may wish to pay a little more, taking more risk, to try and capture some of the new clients, especially the larger trappers that were longtime NAFA customers. Having only one auction house left in Canada may also help prices recover, as all of the wild fur buyers in the world will only have one place and one auction house to visit.
That is what I opened this report about, by talking about uncertainty. Nobody knows for sure how much this turmoil will help prices recover, and how the chips will fall for all players when this season is over. I will say that this will be a very interesting year to watch, and this new battle of the giants may, hopefully, help trappers get more money for their skins.
Worldwide, we can say we’ve likely hit the lowest spot we could hit. Ranch mink production went from 100 million skins in 2013, to this year likely ending up at less than 25 million, some even think it may fall below 20 million skins as prices paid continue to be below production cost, leading most mink ranchers to either restructure with fewer animals, or simply close shop.
The worldwide political arena is as unstable as ever. Political issues in the United States, relationships of both Canada and United States with China, the ongoing economic struggles of Russia, and the increasing social pressures, there are very few bright lights in the fur trade right now. Hopefully, this selling season marks a new beginning and the onset of the recovery of this trade. As a trapper myself involved in many aspects of the trade, I am ready for things to start getting better — I cannot wait, in fact! And I know that most trappers feel the same way. Let’s hope 2020 is the start of a new era in this industry.
