NOR T H A ME RIC A N F UR AUC T IONS
NAFA NEWS AUCTION EDITION
February 2012 Auction Overview
Hong Kong Fur Fair
February Sale an Auctioneer's Delight
Market Your Breeders page 6 Animal Rights Extremism page 7 Auction Report page 9 Top Lots page 11
New sales milestone reached
65 Skyway Ave. Toronto, ON M9W 6C7 Canada | tel: +1.416.675.9320 | fax: +1.416.675.6865 | www.nafa.ca
P r esiden t's m essage Dear Rancher, NAFA has just wrapped up the best auction in the history of the company – prices soared, buyers turned out in abundance and our assortment was nothing short of spectacular. The volume of mink offered was the highest ever and the quality was remarkable. Buyers commended NAFA on the superiority, volume and diversity of the assortment. Total turnover for all fur sold will surpass $300 million, marking an extraordinary new sales milestone in the history of the company. Every last detail in the auction was attended to – from the food service to the professionally run buyer services, consignor services and everything in between – NAFA’s knowledge and experience in running an auction shone through. The averages obtained in most categories smashed previous records set last February and May – our Black NAFA Males, for example, averaged $114.00; Black NAFA Females $77.00. Each color and type achieved sharp increases over last year. All averages for size and type, along with top lots, are available on page 11 of this newsletter. Our aggressive buyer solicitation program over the course of the last year paid off in spades at this auction as a new record number of well over 500 buyers crowded into the auction house to participate and aggressively bid on our quality assortment. Our team of international marketing agents is continuing market visits over the course of the next three months to ensure that the May auction is just as successful. The Hong Kong Fur Fair this year also exceeded everyone’s expectations as the orders were substantial – a full report on the fair is on page 3 of this newsletter. The success of the fair, coupled with our astounding auction, points to a market that could potentially get even stronger in the coming months. Looking ahead to the rest of the season, clearly we’ve set the bar high but NAFA is up to the challenge and we’ve already begun work for the next auction. Overall this season, we will be offering in excess of six million mink, a 20 percent increase from 2011. For the May auction we plan to offer approximately 2.8 million mink. Our guaranteed profit sharing dividend of 3.5 percent for 2012 ensures that you will be able to sell your mink at the lowest possible cost to the world’s buyers. All of this was achieved despite a warmer than usual winter in most international fur markets, which demonstrates that NAFA’s focus is sharp and our vision strong. We would like to wish you every success in the upcoming breeding season and look forward to seeing you in May.
Michael D. Mengar, President & CEO
February 20 12 Auction ov erview
the sale The sale began with our diverse selection of mutation mink and instantly, the stage was set for a record setting auction. Prices were firm to advancing over the most recent international auction and everything was selling 100 percent. The momentum from the mutations carried over to the second day of the sale when our legendary Black NAFA and Mahogany Males were sold and commanded unprecedented new highs. The top lot in Black NAFA Males sold for an impressive $1,400.00 â€“ a price that hasnâ€™t been seen in years. Next was Black NAFA and Mahogany Females along with Pastels and the sharp increases continued. The Black NAFA top lot Female also garnered a high price of $1,200.00. The success of the mink sale spilled over into the Wild Fur sale and strong prices were achieved for Canadian sable, silver fox and most other articles. Each day of the sale commanded vigorous bidding in the auction room, with ample representation from all major international fur markets.
Hong Kong Fur Fair Exceeds Expectations
The 31st annual Hong Kong Fur & Fashion Fair opened its door on Saturday, February 25th, 2012 to a record number of visitors on day one. Over 5,000 registered buyers descended on the Hong Kong Convention & Exhibition Centre this first day as manufacturers and pelt dealers waited in anticipation for their reaction to the current level of prices. It did not take long for the more than 250 exhibitors to breathe a sigh of relief as the order writing started early. Hong Kongâ€™s major manufacturers with an international following were the first to witness acceptance of the new price structure. Due to the size of the exhibition, three levels of the massive convention center were occupied. The first two levels were for Hong Kong Fur Federation members and the upper level for foreign exhibitors. This top hall included a Greek pavilion with 43 exhibitors, a German pavilion with 15 exhibitors, over 50 independent Chinese companies as well as exhibitors from Italy, Spain, Turkey, Finland, Canada, U.S., and other countries. The second day of the fair saw an additional 1,800 buyers enter the fair grounds and add to the purchases already underway. At this point, business was being transacted on all three levels of the fair. On the final two days, 800 more buyers registered, bringing the total to over 7,600. By far the largest representation came from China with well over 3,000 buyers registering. This figure was up about 25 percent from last year. Russian and Ukrainian buyers
numbered just over 1,250 - an approximate 10 percent increase. The number of Korean buyers declined about 20 percent to slightly under 900. Visitors from other countries were similar in number to previous years. By the fourth and final day of the fair, pelt dealers were acknowledging substantial orders for immediate delivery. Fine quality and fashion were the key words for garment manufacturers and those who offered these components were pleased with the response to their collections. The more commercial suppliers responded positively but to a lesser extent. Most Hong Kong manufacturers said they did as well or better than last year. Most foreign exhibitors, particularly the Greek manufacturers, were pleased with this yearâ€™s outcome.
Overall, the Hong Kong Fur Fair was considered to be a success. The confidence in the industry is expected to lead to stable to increasing prices for all fur articles. Page 4
February Sale an Auctioneer's Delight auction market breakdown Over the course of the last few weeks leading into the February auction, there were signs that attendance would be strong - hotel reservations were brisk and our phone lines were busy as buyers began making their final plans for the week. Once the auction came however, the turnout exceeded even our own expectations as over 500 buyers flooded the auction room – a new record number for a North American auction. The week turned into an ‘auctioneers delight’ as there was spirited bidding across the board in all sizes, colors, and qualities.
china Buyers from China turned out in full force – over 300 attended the auction despite the warmer than usual winter in a large part of the northern region. The warmer temperatures didn’t dampen enthusiasm as the auction room was full of eager Chinese buyers willing to pay top dollar for our quality assortment. In fact, China was the biggest force throughout the sale, eagerly buying in all categories. Once again, the Chinese market has proven to be an incredible force with no signs abating anytime soon. Our international marketing agents continue to work this important market and, this year, their hard work at buyer solicitations proved to be tremendously successful.
russia The turnout of approximately 76 Russian buyers was nothing short of impressive – dealers and manufacturers from all over Russia played a strong role throughout the sale. They were extremely active on the better quality, bigger sized Male mink in all colors and dominated the top and better end of the wild fur sale.
korea A strong Korean contingent turned up for the auction and, as usual, the Korean desire for high end, quality goods was paramount. Korea dominated the Black Females and offered strong support for all other Females, particularly in the Pastels.
overall Greece and Turkey also had a solid contingent of buyers – approximately 60 between these two important markets. NAFA even began to make headway into new markets – including Uzbekistan, Armenia, Belarus and Ukraine. In the next few months we will be solidifying our buyer relationships and working to create continued demand for our coveted quality product.
Ma r ket Your Bree der s Each year NAFA has consistently achieved the highest prices for your spring pelts. Thatâ€™s because NAFA consistently brings in more buyers from around the world to compete for your pelts than our competitor. A review of our recent February sale proves this to be true â€“ over 500 buyers competed aggressively to produce the highest prices ever for North American mink. Our May sale offering of 2.8 million mink and over 1.2 million units of wild fur will once again attract more buyers than any of your other options. Another reason for our superior results is the way we market your spring pelts. In sorting, we make every effort to combine similar quality skins into large strings of well-matched lots. Also, through our innovative technique of grading your spring pelts, we have been able to increase the number of labeled pelts, thus generating higher returns for you. Additionally, by combining our entire assortment of over 400,000 breeders into one separate catalogue, we have consistently increased buyer interest and ultimately their value. On a size by size and quality for quality basis, NAFA consistently outperforms our closest competitor in obtaining the highest prices for your pelts. The table below demonstrates this fact. (May 2011 Results)
With record prices for mink, NAFAâ€™s large buyer turnout, innovative sorting techniques along with the 3.5 percent guaranteed rebate on all consignments, it makes good sense to offer your spring pelts with North American Fur Auctions. Please visit our website at www.nafa.ca for last receiving dates. Page 6
An i m al Rights Extr emism crisis communication brochure enclosed Soaring mink prices and demand for fur also means a renewed interest from the animal rights extremists, many of whom are not pleased with the fact that fur has made a comeback and is a must-have for leading international designers. NAFA is always vigilant with these groups and wants you be attentive to what is going on both inside and outside your ranch. With that in mind, we’ve put together a brochure (enclosed) to help you prepare should a problem occur. This brochure is designed to get you to think about how to create a network of help and forge the relationships needed before something happens.
Speaking with the media isn’t recommended and media calls should be forwarded to associations that you belong to. An experienced media relations spokesperson is the best person to call if the media is asking for an interview, but should you suddenly be faced with reporters in front of you, this brochure should help guide you. Keep in mind that the associations you belong to need to be notified if anyone asks for a tour of your farm or an interview. It is important to note that in 2011, four mink ranches were targeted in the U.S. by extremist animal rights groups and all incurred property damage and lost mink as a result. Tom McClellan, an Ontario rancher was targeted in 1997 by extremists, who released a good portion of his mink, and many died as a result. Said Tom, “You work seven days a week to look after your animals and care for them. Somebody comes in and they kill your mink in the most brutal way ever, and they’re supposed to be animal lovers.” Tom rescued most of his mink but some died after being rescued; others contracted pneumonia and others aborted their kits because of the stress. The activists were all caught and the long, arduous process of dealing with the legal and court system began. Tom says if he could send one message to other ranchers it would be: “It could happen to anybody. I was keeping watch that night for the activists because they’d already shown up once and they still managed to release mink.” It is also important to remember that anyone wanting to come to your ranch to take pictures should not be permitted to do so, including reporters or independent film makers. Flattery and claims that a film is about getting the ‘other side’ of the fur story should be greeted with skepticism. Should you receive a call of this nature, please let your fellow ranchers know about the call and contact your local representative. Page 7
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9 | International Tr apper FALL 2011
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F e bruary 2012 A uction Rep ort
February 20 12 Auction Rep ort
Top Lot Page The top lot of Black NAFA — Male was purchased by Kasapis Bros., of Kastoria Hellas, produced by Zimbal Minkery. The top lot of Black NAFA — Female was purchased by Happy Part Trading Co., Ltd. for Harbin Guifuren Fur Square, of Harbin, China. Produced by Patrick Fur Farm. The top lot of Blue Iris Mink — Male was purchased by Sotiris Vogiatzis for Panafics, of Pyatigorsk, Russia. Produced by Jefferson-Mueller-Moyle-Smieja-Gamroth. The top lot of Blue Iris Mink — Female was purchased by Happy Part Trading Co., Ltd. for Harbin Guifuren Fur Square, of Harbin, China. Produced by Jefferson-Mueller-Moyle-Smieja-Gamroth. The top lot of Demi Mink — Male was purchased by Abel Fur Trading, of Dubai, UAE. Produced by Walt Brown. The top lot of Demi Mink — Female was purchased by Lazar Izraev for EL-EZER, of Pyatigorsk, Russia. Produced by Walt Brown. The top lot of Lavender — Male was purchased by Morisco Denmark A/S for Fashion House Kussenkovv, of Saint Petersburg, Russia. Produced by Pavek Fur Farm. The top lot of Lavender — Female was purchased by Klondike International Furs for Vtoroy Mekhovoy, of Moscow, Russia. Produced by Pavek Fur Farm. The top lot of Mahogany Mink — Male was purchased by Carlo Guida for Ester Furs, of Moscow, Russia, produced by Zimbal Minkery. The top lot of Mahogany Mink — Female was purchased by Y Ninomiya Ltd. for Manzari International, of Dubai, UAE. Produced by Zimbal Minkery.
The top lot of Pastel Mink — Male was purchased by Sibfur Company for Trade House Avenue, of Novosibirsk, Russia. Produced by Labonte-Springbrook. The top lot of Pastel Mink — Female was purchased by Charley International Holdings Ltd. for Tian Lun Fur, of Dalian, China. Produced by Labonte-Springbrook. The top lot of Pearl Mink — Male was purchased by Naoum T. Ditsios for Fokos Furs S.A., of Siatista, Greece. Produced by McLachlan-Dittrich. The top lot of Pearl Mink — Female was purchased by Lazar Izraev for EL – EZER, of Pyatigorsk, Russia. Produced by McLachlan-Dittrich. The top lot of Sapphire Mink — Male was purchased by Abel Fur Trading, of Dubai, UAE. Produced by Trimberger-Smieja. The top lot of Sapphire Mink — Female was purchased by Canasia Fur Trading Inc. for Chengdu Mingmen Fur City, of Chengdu, China. Produced by Bogus Fur Farm. The top lot of Violet Mink — Male was purchased by Carlo Guida for Ester Furs, of Moscow, Russia. Produced by Zimbal Minkery. The top lot of Violet Mink — Female was purchased by Champion Flair Limited for Zhejiang Yayin Garment Co., Ltd., of Zhejiang, China. Produced by Zimbal Minkery. The top lot of White Mink — Male was purchased by Carlo Guida for Ester Furs, of Moscow, Russia. Produced by Sandy Bay. The top lot of White Mink — Female was purchased by Happy Part Trading Co., Ltd. for Harbin Guifuren Fur Square, of Harbin, China. Produced by Sandy Bay.
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