Fur pelt prices are about to go up again
Apr 23 2020 - Following a price bubble in the period 2010-2013, fur pelt prices have been dropping significantly with a subsequent decrease in world production. The same market development has been observed before and history suggests pelt prices are about to go up again soon, according to Senior Advisor at University of Copenhagen's Department of Food and Resource Economics, Henning Otte Hansen. He has earlier written a book about the Danish mink production and the underlying economic structures of the global fur trade. Now he has examined price- and production statistics for natural fur pelts from 1950 to 2019. "The price increases are about to come. It’s only a matter of the time perspective,” he said, explaining mink pelts are price elastic products, a characteristic achieved because by a market without the market regulations are known from other agricultural products, where prices do not vary much over time. The price-setting on the market for natural fur pelts is truly expressing supply and demand, although it takes a few years for the supply to adjust to demand when prices first begin to drop. “You can tell from the statistics that price and supply are closely associated. When the supply - the global production of pelts - have been decreasing for a while, the prices begin to go up. If prices go up the supply goes up as well. When the supply again exceeds the demand, the pelt prices drop, and rather quickly and dramatically too.” This pattern happened from around 2000 when prices were at the bottom, and towards 2013, when prices again reached a peak. “When the price was at the top in 1987, it took about 8 years before it began to increase dramatically again. If the same pattern repeats this time, prices will begin to increase again in 2021 latest,” he said. The effects of the COVID-19 may, however, impact the curve. “If the corona-crisis develops into economic crisis and recession the demand for fur will drop. As the demand for fur products is relatively dependent on income, a poor economy can impact the demand considerably,” Henning Otte Hansen said, but pointed out the negative fluctuation in pelt price that followed the global financial crisis in 2009, was short and the upward price curve for that period continued shortly after. Another possibility is that economic effects from the corona-crisis extend the period before prices go up again. The global mink production has now dropped to about 45 million pelts, down from all-time high 87 million in 2014. This is approximately the same as world production in 2007.
A new kind of businesses enter the fur trade
Feb 21 2019 - It is fashion week ‘season’ and true to tradition The One Milano fair takes place under the umbrella of Milan Fashion Week - and this year the organisers are spotting a new kind of exhibitors at The One Milano, the largest fur fair in Europe. “This year we have a lot of new companies exhibiting at The One Milano. These are people coming from other textile industries, and we appreciate this because they bring a fresh view on things,” Roberto Tadini, member of The One Milano Board of Directors, says. This year’s fair brings in a total of 393 exhibitors and some 8.000 buyers representing all European countries in addition to buyers from more than 20 countries in Asia, as well as countries in the Americas. According to Roberto Tadini, the exhibitors at this year’s The One Milano reflects a general change in the fur trade in which the traditional fur manufacturers either adapt to a modern style or the business fade away. Combined with the many new companies, the overall impression of the fair is strong before it kicks off Friday 22 February. “The quality of the exhibitors is very good. These are people who understand consumers and have a fresh, cool and more modern view on fashion. The whole fashion industry is changing, and with the millennial consumers sustainability is becoming very important to fashion,” Roberto Tadini says. In an extension of this and supported by Vogue the international fur design competition REMIX 2019 works under the theme ‘Responsibility’. The REMIX show takes place Sunday and concludes a competition counting more than 1.000 design students from 25 countries.
Fashion consumers: the environment is the most important
Nov 29 2018 - According to a new survey more consumers care about workers being paid fair, living wages and environmental protection than animal welfare, recycling and local manufacturing. The survey was published in November 2018 and was commissioned by Fashion Revolution, a global sustainability movement dedicated to "change the way our clothes are sourced, produced and purchased". The survey was carried out amongst 5,000 respondents of the biggest European fashion market in Germany, the UK, Italy, France and Spain. According to the survey, the majority of people think it is important for fashion brands to reduce their long-term impact on the world by addressing global poverty (84%), climate change (85%), environmental protection (88%) and gender inequality (77%). Only 30% found it important that clothing has been produced without harming animals. When it came to the purchasing decisions, 37% of the consumers said that they consider the environmental impact of clothing production before deciding whether to buy or not. In general, the vast majority of consumers ask for more transparency from fashion brands. An overwhelming proportion even think that the government should be regulating fashion brands to ensure that they protect human rights, the environment and are more transparent about their business practices and impacts