After the fur industry trumpeted record prices in January 2012, prices dropped by half last year, largely because of troubles in Russia and China. The export industry contributes more than $300 million to the Canadian economy through trapping, farming and clothing manufacturing. The total contribution to the economy is $800 million.
The fur trade had rebounded based on the headway it made in the ethics debate with animal activists, design innovation and the opening of vast Asian markets. Global sales were up 44 per cent in the decade ending in 2011-2012.
Fur prices in China plunge
But a huge crackdown on corruption in China had a big effect on the industry. Tax changes, an increase in local mink farming and a warm winter last year all contributed to a drop in fur prices there.
In Russia, the precipitous drop in the value of the ruble and economic sanctions dampened people’s buying powers lowering prices too.
China is having a colder winter this year which may help. It’s not clear whether the frigid temperatures in eastern North America will have an impact.
About 65,000 Canadians work in the fur trade.
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