IFAJ 45^th Annual Congress 8-13 September 2001, Savonlinna, Finland

Fur production – production in jeopardy?

Gustav Smulter

Managing Director

Finnish Fur Breeders Association

Fur farming expanded into Europe and, in particular, the Nordic countries just after its inception in North America. The first silver foxes were imported to Norway in 1914 and, a few years later, the first fur animals were imported to Finland.

Animal husbandry has a long tradition in Finland, and a majority of Finns still claim roots in rural areas. Fur farming has been a natural alternative for the thousands of livestock farmers that were no longer able to earn a living from traditional livestock farming. Periodically, fur farming has proven far more profitable than the breeding of other animals.

The high quality and good reputation that Finnish furs enjoy throughout the world is the result of a Finnish professional skills and experience in animal husbandry. The Nordic climate is the natural environment for fur animals, which also contributes to the fur’s high density and excellent quality.

Fur animal species

The mink is the most important fur animal in fur circles. The original North American mink is dark brown in colour. While countless mink types of all colours have been bred on fur farms, the black and brown minks have the greatest commercial value.

Of all the foxes bred in Finland, the most common is the blue fox. The blue fox is a dominant colour of the Arctic fox and, as the name indicates, is blue-grey in colour.

The silver fox is a less common colour variant of the red fox. The most common natural fox colouring in the world is red, while the silver fox is much more sporadically found, which explains the high demand for its fur.

This year, approximately 28 million mink furs and 4 million fox furs are produced throughout the world.

Fur animals are top waste managers

A majority of the raw materials used in fur animal feeds are by-products of the foodstuffs industry, such as slaughterhouse waste and by-products of the fish industry. In Finland over 100 million kg of slaughterhouse waste are used every year, which would otherwise be destroyed or processed at great expense.

Production of fur animal feeds takes place primarily at specialised feed centres, which are owned by the farmers themselves. As with other commerce in feeds, fur animal feeds are also subject to feed legislation. Feed quality is under constant surveillance by authorities that receive continuous reports on feed production. All feed centres also have their own quality control for their production and the laboratories of the Finnish Fur Breeders Association conduct analyses of feed producer test batches.

Fur animal research continues unabated

For the past 50 years, farmed fur animals have been the subject of an international biological research project. During the first years of the project, studies in breeding, diseases and genetics assumed a central role, which resulted in today’s extensive knowledge of fur animal biology. Over the last 15-20 years, there has been a greater concentration on ethological issues, investigations in determining behaviour, where promising advances have been made.

The Council of Europe’s standing committee on the European Convention for the Protection of Animals kept for Farming Purposes gave its first recommendations for fur animals in 1990, which were amended in 1999. These recommendations require that further research also be carried out within this field.

In the research conducted special interest has fallen on two areas of study: adaptation of the farmed animal to a farm environment and their well-being in such an environment. One cannot answer these questions by studying the fur animal’s co-species in the wild – the farmed animal must be studied within the context of the farm.

Fur farming provides employment

Most of Finland’s fur breeders are located in Ostrobothnia. The west coast of Finland offers excellent conditions for fur farming, due to a well organised feed supply and easy access to feed fish. 1,700 fur breeders are active in Finland today. The total number of individuals employed by these farms amounts to approximately 7,000 persons.

There are 6,000 fur farms operating within the EU, employing an approximate total of 30,000 persons. These figures comprehend the farm operations alone. If the entire fur industry, including fur manufacture and sales, were to be added to the equation, this would amount to 164,000 jobs.

Within the EU, total annual pelt sales are valued at EUR 625 million. In comparison, the total value of rye production within the EU, based on world market prices, amounts to approximately EUR 450 million per annum.

If the entire fur industry, including fur post-processing and sales within the EU, is taken into consideration, the total turnover rises to approximately EUR 4,800 million (2000).

In all the countries of the world fur farming claims no state subsidies.

Fur sales

Pelts are sold via an auction house, which are usually owned by the farmers themselves. In Finland, auctions are managed by Finnish Fur Sales Ltd. and in Denmark, the Copenhagen Fur Center. These two auction houses sell a majority of the pelts produced in Europe. In the United States there are two more such auction houses. The auctions, held 5-6 times a year, involve bidding on pelts in numbered lots, which ensures that the buyer receives a uniform good, thus facilitating the use of dressed pelts in the manufacture of various fur garments. Pelt prices are determined by auction protocol, which means that the price can fluctuate easily from auction to auction. The fur industry is extremely sensitive to economic fluctuations. In addition to general economic fluctuations, fur prices are also naturally affected by fashion trends throughout the world.

Even as early as 50 years ago, fur breeders in the Nordic countries saw that co-operation was crucial to influencing consumers around the world. This resulted in the foundation of a joint marketing corporation called Saga Furs of Scandinavia, which manages advertising and marketing campaigns around the world. A few years ago saw the establishment of an international design centre, which co-ordinates developments in fashion and design, and enjoys a well established co-operation with leading design houses in the world in order to ensure the presence of fur on the international fashion scene.

In Europe Italy, Germany and Spain are the largest consumers of fur products. At present, our most important consumer markets are China and Russia, while the United States and Japan are still attractive markets for our industry.

Gustav Smulter

Managing Director

Finnish Fur Breeders Association

Vocational Qualification in Business and Administration

Age: 58 years

Mr. Smulter has served as Managing Director of the Finnish Fur Breeders Association since 1989. He has held various posts in the Association since 1963. He is also a board member of the European Fur Breeders Association (EFBA).