Fur Industry

I

Introduction

Fur Industry, area of commerce that encompasses farming or trapping certain furbearing animals, processing their skins for sale to manufacturers of fur garments, and marketing finished garments to retail outlets. The term fur refers to any animal skin or part that has hair, fleece, or fur fibers attached, either in a raw or processed state. Skins of furbearing animals are also called peltries or pelts.

From earliest times, fur has been a prized commodity. Exploration in the New World made furs more readily available, and as early as 1530 regular shipments of beaver pelts were sent to Europe from the colonies. The beaver, trapped by Native Americans, was a main source of barter at trading posts that later grew into such cities as Chicago; St. Louis, Missouri; Saint Paul, Minnesota; Spokane, Washington; and Detroit.

II

Fur Farming

Fur farming, or raising animals in captivity under controlled conditions, started in Canada in 1887 on Prince Edward Island. Animals with unique characteristics of size, color, or texture can pass those characteristics on to their offspring through controlled breeding. Fur farmers customarily crossbreed animals (mate different varieties from the same species) and inbreed animals (mate close relatives) to produce furs with desirable characteristics. The silver fox, developed from the red fox, was the first fur so produced. Today, so-called mutation minks ranging from white to near black and from bluish to lavender and rosy-tan colors, each with exotic trade names, are raised on thousands of fur farms, as are chinchilla, nutria, and fox. Most fur farms are in Northern Europe (64 percent) and North America (11 percent). Fur-farmed animals provide a steady supply of fine-quality, well-cared-for peltries, and account for 85 percent of the world supply of peltries. Some 31 million pelts were produced in 2001, out of which 90 percent were mink and 10 percent were fox.

III

Marketing Channels for Furs

North American fur trappers and farmers have come under increasing pressure from foreign competition. By the late 1990s, the Scandinavian countries produced 68 percent of the world supply of peltries; the Commonwealth of Independent States (CIS) supplied 13 percent; the United States, 5 percent; China, 3 percent; Poland, 3 percent; and Canada, 2 percent. Retail sales of furs in the United States grew from less than $400 million in the early 1970s to $1.8 billion by the late 1980s, and then remained between $1.8 billion and $2 billion annually. The fur industry has also been hurt by protests from animal rights activists and the increasing popularity of artificial fur.

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Trappers send peltries to local collecting stations or to dealers who send them on to receiving houses, where they are prepared for auction. Prime furs, those caught during the coldest season (When fur and skin are best for garments), are labeled as firsts. Unprime furs, caught earlier or later, are labeled as seconds, thirds, or fourths. Fur-farmed peltries are often brought to collecting stations; more commonly, the farmer is part of a farming cooperative, such as American Legend, whose representatives supervise the assembling and sale of peltries.

At fur auction houses, the furs, bundled in groups according to color, size, quality, and source, are sold to the highest bidders; all sales are for cash. Major fur auction houses are located in Copenhagen, Frankfurt, Helsinki, Hong Kong, Leipzig, New York, Seattle, St. Petersburg, Toronto, and Vancouver. Some furs are sold through brokerage firms. Fur dealers and manufacturers buy at the auctions or through brokers. Factoring, begun in 1935, is a method of financing dealers, brokers, and manufacturers. Factors charge a percentage for the use of their money.

IV

Processing Furs

Furs bought at auction need to be preserved and beautified. Dressing and dyeing firms specialize in certain types of furs and charge a price for each processed skin.