Revised Jan. 11, 2024.

There have been some dramatic changes in the fur auction scene in the last few years, so we thought it was time to make sure everybody – not just trappers and fur farmers, but anyone with an interest in the fur trade -- is up to speed.

In the most general sense, there has been considerable continuity. Most North American fur is still sold at public auction, although more wild fur is now bought from trappers by small- and large-scale collectors who then sell directly to domestic or foreign brokers or manufacturers.

Where there has been dramatic change is in the faces of the major players.

Rewind Just Five Years

Until very recently, North America boasted three important fur auction houses: North American Fur Auctions (NAFA) with its main facilities based in Toronto; American Legend Cooperative (ALC), headquartered in Seattle; and Fur Harvesters Auction (FHA), a trapper-owned cooperative in North Bay, Ontario.

The largest of these was NAFA, the successor to the fur auction business of the Hudson’s Bay Company, a company that once controlled more than half of Canada, and -- founded in 1670 -- is one of the oldest, continually operating joint-share corporations in the world. Owned by the trappers and farmers who shipped to it, NAFA handled both wild and farmed furs, although farmed mink accounted for the largest share of its business in dollar terms.

With farmed mink, NAFA was in direct competition with ALC, a cooperative owned by US mink farmers, and holder of the “Blackglama” brand, arguably the most recognizable fur label in the world. FHA was NAFA’s main competitor for wild fur.

Then the seemingly stable fur auction scene began to change, and fast!

The first shock came in 2018, when ALC announced it was winding down. NAFA bought significant ALC assets, including the Blackglama label, while other assets went to the New York-based Tax family. With a long history of involvement in the fur trade as brokers, the Tax family quickly moved to set up a new US auction specifically for farmed mink, American Mink Exchange (AME).

Then, the very next year, in 2019, squeezed by a cycle of falling fur prices after several years of record highs and rapid expansion, NAFA closed its own doors after filing for creditor protection. Within just a few years, North America had lost its two largest fur auctions, and gained a brand new -- although much smaller -- one.

Which brings us to today. Who are the main players now, and how is North American wild and farmed fur brought to market?

FHA continues its role as an important seller of North American wild fur, and is the only auction house now doing so. FHA has always also sold some farmed pelts, especially foxes -- they now handle most of the farmed fox pelts produced in Canada and the US -- but their offerings of farmed mink have remained quite small.

Since the demise of NAFA, more North American wild fur is now also bought and sold by collectors and dealers, notably Illinois-based Groenewold Fur and Wool. GFW also buys small quantities of farmed fur, mostly third-section goods in both Canada and the US.

Some North American farmed mink is sold at auction – or in “private treaty” sales -- by AME, which has also leased the licence for the Blackglama label.

But the majority of Canadian and US mink production is now handled by Saga Furs North America, an American subsidiary of Saga OJY, the Finland-based auction company created in 1938 by the Finnish Fur Breeders. North American mink is processed and graded at Saga’s new facility in Milton, Wisconsin, before being shipped to the auction sales in Helsinki.

In Europe too, there have been some major changes.

European Development

When NAFA closed its doors, it was only to be expected that more North American farmed mink would head to Europe – home to the world's largest fur auction house, Kopenhagen Fur, in Denmark, as well as Saga Furs.

But then came another upheaval. Until 2020, Denmark was the world's leading producer of farmed mink, and Kopenhagen Fur's main role was to sell the production of the Danish Fur Breeders' Association – supplemented by farmed fur from elsewhere, including North America.. Then Covid-19 struck and the Danish government made the hugely controversial and ultimately illegal order to cull the country's entire mink herd, claiming (erroneously) that this extreme measure was needed to protect public health. It was a PR disaster for the world's fur industry, and a crippling blow to Danish mink farmers, only a few of whom have expressed interest in re-stocking their farms.

As a result of this politically induced catastrophe, Kopenhagen Fur is now winding down operations. With millions of mink pelts in storage, it will continue holding auctions through 2024, but this will probably conclude its offerings.

This leaves Saga Furs as the world’s largest fur auction house. Saga deals only in farmed furs, primarily mink, fox and finnraccoon, and with the demise of both NAFA and Kopenhagen Fur, has increasingly been handling North American farmed mink. Although the auctions are held in Finland, Canadian and US mink are sold under a separate North American catalogue, and all the mink are certified by the Canada Mink Breeders Association (CMBA) or Fur Commission USA.

As this brief survey shows, the last five years have been a rough ride for fur auction houses. For fur farmers, trappers, and others in the trade too, as revenues declined considerably from the record high mink prices registered barely a decade ago – a contraction magnified by the shutdown of important Chinese retail markets during Covid.

But with world mink production now considerably reduced and markets in China and elsewhere bouncing back, there are already signs that demand (and prices) for both wild and farmed furs are once again improving.

Not least important, as society becomes more concerned about environmental sustainability, fur checks all the boxes: natural, long-lasting, recyclable, and ultimately biodegradable.

The fur trade has survived many crises in its long history; it will be interesting to see what the next years will bring!

SEE ALSO: After years of crises it's clear: Fur auctions are the only way to ensure fair prices. By Mark Downey, Fur Harvesters Auction, for Truth About Fur, Feb. 26, 2021.

I have been employed in this business from the fur auction end since the early 1980s and as a trapper earlier yet. The first real crisis I personally witnessed in this business happened in the mid-1980s when the Ontario Trappers Association (OTA) went through a major shift in new directors being voted in at the annual trappers convention. Out of that the new board hired Price Waterhouse to develop a new management platform for the OTA fur sales service. When the dust settled, it saw Alex Shieff resign after 20 years at the helm as captain of a real success story, OTA, which he played a major role in building.

A multi-tiered management team was put in place with people being hired with no history in the trade. It was during this time of great unrest and turmoil that the Hudson's Bay Company (HBC) formed Trappers International Marketing Service (TIMS) and set up a warehouse directly across the road from where Fur Harvesters Auction (FHA) remains today.

TIMS hired away many senior graders, managers and agents from OTA which made our situation even tougher. As well, at the time we were in a depressed market with prices and clearances at unhealthy levels. The end game of the subsidiary company TIMS was to put OTA out of business. As reported in the Ottawa Citizen, Feb. 11, 1986, when TIMS's newly appointed GM, Ron Lancour, was asked by a reporter, “Why not set up the subsidiary in Toronto and leave North Bay the Association?" he replied, “If you’re going to be in competition, what better place is there to locate than next door?”

Goodbye TIMS and HBC

Well, that was 35 years ago and TIMS was a flash in the pan and was dead and gone in a few short years. Actually FHA bought most of their warehouse equipment as well, and I recall many of us here rolling carts and bins of equipment down the road from their warehouse to ours prior to TIMS closing down forever. Shortly after this, for the first time since HBC was incorporated in 1670, its name ceased to be associated with wholesale fur trading. While the Toronto location of the auction house remained the same, the name was changed to North American Fur Auctions (NAFA).

In the 1960s there were eight fur auctions in Canada: HBC, Dominion Fur Co., Soudack Fur Auctions, Edmonton Fur Auction Sales, Western Canadian Raw Fur Auction Sales, Canadian Fur Auction, Saskatchewan Fur Marketing Board and the OTA. Some were forced out of business but many were simply swallowed up by the HBC to become a subsidiary or affiliate forwarding agency for that corporation with all furs being auctioned in Toronto.

SEE ALSO: Fur auction houses: Buying and selling fur pelts. Truth About Fur.

During the 1980s and up to 2005, Canada was home to three remaining auction houses. In 2005 the late great Ted Pappas, owner of Western Canadian Raw Fur Auction Sales, decided to hand his business over to FHA leaving only two companies standing.

During the past 35 years we have seen markets rise and fall and troubles come and go. As of last year, FHA is the last remaining fur auction company, not only in Canada, but in all of North America.

Why is that, how can it be possible? I leave this to each and every trapper to ponder but the thousands loyal to FHA have their opinion on the matter.

Great Fur Auction

Now here we are today running this great fur auction company during a global pandemic, which we have never before witnessed. All international travel is restricted and most countries remain locked down.

FHA's business model has been standing since 1947 – to sell fur into the international markets through competitive bidding in our auction room. We are not fur buyers and this wild fur auction house was founded by men decades ago that were tired of the take-it-or-leave-it option. Without an international auction, there will never be a true basis as to what your hard-acquired catch of fur is worth.

SEE ALSO: Fur Harvesters Auction ramps up services for trappers and trade. Truth About Fur.

This past two years we have witnessed a surge in travelling fur buyers set up to take advantage of our inability to host international buyers at auction. I understand the power and leverage of cash in hand, but I understand more importantly that was all we had for hundreds of years until trappers got fed up and started an auction in North Bay in 1947.

April Auction Going Ahead

Our next auction is set for mid-April and we are going to have it. There is a chance that only Canadians can attend as our federal government seems intent on keeping us locked down a bit longer. All indications are that many articles are in greater demand now and we are intent on holding to stronger valuations at this auction. Once the final hammer falls, all unsold goods will move onto our online platform where the same valuations will be held to.

We are receiving many calls daily from all over the world asking for coyotes, muskrats, sables, beaver, lynx, bobcats and raccoon. Oil prices in Russia are up and this has Russia back in the game and their cold winter has helped further. The Feb. 8-12 sable auction at Sojuzpushnina in Russia saw prices advance strongly and this reflects most positively for our upcoming sale. China has been extremely successful in the past several months as online garment sales are extremely strong. This has led to many good orders coming in from this important market.

We are much more optimistic going into this year compared to this time last season. This pandemic is nearing its end and when it happens our shippers will be greatly rewarded for their loyalty and commitment to this great company, Fur Harvesters Auction Inc.

Remember, you own the place.

Stay well and GOD BLESS.

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