HAWAIIAN

2009: Fur Industry Or Will Emerge From The Downward Trend

  Animal fur is my import and export of bulk commodities, the domestic market also expanded in recent years. China fur animal breeding industry and its gross Piga industries to the concern by the people and allow for rapid development, along with the reform and opening up the rapid development of the national economy and people’s quality of life and substantial increase in the level of consumption of valuable fur animal products Demand is increasing results. Fur Products With the improvement of people’s living standards, consumers are no longer simply a group of high income groups. Today, China in terms of fur production or consumption, have become eye-catching large market.

     China’s fur industry started relatively late, starting lower, to date, has not yet reached a satisfactory level of development. But after years of rapid growth, China have the fur has been a considerable scale in the international market play an increasingly important role as the world’s largest fur and fur products producers.

     After years of development, China’s fur processing has Wenju in the world, China has become the world’s fur processing base. According to the European fur estimate that 80% of the world’s fur manufacture in China. China has become the most important foreign fur auction buyers, in 2007, I fur processing trade exports reached 454 million U.S. dollars, accounting for 49% of fur exports, surpassing even the general trade exports. This shows that China’s Qiu Piga than the fur farming industry developed more than half of China’s exports of raw fur skin from abroad.

     Import and export trade of

     January to October 2008, China’s total imports and exports of fur 1.182 billion U.S. dollars, up by 5.1%. One fur imports 411 million U.S. dollars, up 22.6%; fur exports 771 million U.S. dollars, down 2.3%. January to October 2008 imports of raw materials fur .. 9.9 billion U.S. dollars, up 23.5%; exports of 269 million, compared with the same period in 2007 increased 12%.

     Fur imports mainly raw materials, accounting for fur class I 96.6% of total imports of goods. Where Scandinavia is the world’s largest fur producing animals, but also my main source of imports of raw materials fur, I am more than half of fur imports of raw materials from Northern Europe. Denmark is the largest importer of my fur, fur raw material imports accounted for about 1 / 3.

     In recent years, I have fur imports of raw materials continued to grow. 2001 Fur raw materials imported 172 million U.S. dollars in 2007 increased to 374 million U.S. dollars, 2.17 times in 2001. This shows that the gradual increase of China’s fur processing capacity, while fur processing quality has reached a higher level; the other hand, shows that our fur animal breeding industry lags behind the domestic Qiu Piga industrial development, the domestic production of fur raw material prices, quality can not satisfy the domestic and international market demand.

     After three decades of China’s fur exports more than 10 years of sustained and rapid growth to 2005, exports of 2.585 billion yuan of China’s fur to reach a record high. However, in 2006 that the drastic decline in a decrease of 57%. 2007 in 2006, again based on the relatively large decline in January-October 2008 Fur exports have not yet out of a downward trend. Fur exports fell for many reasons, there are macro-economic factors, but there are also the reasons for their fur industry. First, a country of “two highs and one owned” policy after the introduction of enhanced environmental protection requirements leather processing, leather included in the prohibited category in processing trade catalog. While national policies on the leather and fur industries differ, but the fur industry, the impact is still relatively large. Second, in 2006, the State Administration of Taxation carried out to combat evasion of VAT special rectification activities, Hebei zaoqiang, Suning and other leather processing zones due to major problems have become more focused, the leather will become a focus of inspection commodities, except for some illegal businesses were penalties, for issuing the export of value-added tax invoices reflect the “bubble” also disappeared. Third, in 2007 the State fur garment export value-added tax cut, after a considerable part of the normal exports to Russia fur products changed from “charter package tax” means shipped, which the customs export statistics in the fur will also have a certain degree of decline in performance. Although the second half of 2008 raised the country Leather export tax rebates, but the effect of policies remains to be seen.

     On the export of the country is concerned, Russia is a major exporter of fur me, fur exports to Russia in 2007 I have only 105 million U.S. dollars, down 60 percent compared with 2006, January to October 2008 I fur exports to Russia just 34.28 million U.S. dollars, up 58.7% year on year decline. I fur exports to Russia dropped 4 consecutive years, has its own reasons, such as a continuous reduction in market demand caused by warmer winters in 2007, Russia abolished Furs, Leather, retail market, resulting in ineffective marketing channels, etc., but “tax-charter” leads to loss of Statistics Quasi is also important factors.

     Hong Kong is our second largest export fur region, Hong Kong fur exports in recent years, I have a steady growth in the customs statistics, Russia has been ranked No. 1 over. 2007 years and the Hong Kong fur exports 351 million U.S. dollars, down 7.3%; January to October 2008 in the Mainland to Hong Kong fur exports 367 million U.S. dollars, an increase of 25%. I am in Hong Kong fur exports, relatively stable, showing the mainstream of the world fur market stability and maturity.

     The international market

     International fur market in raw materials mainly by the auction completed, the formation of Denmark, Finland, North America and Hong Kong, the four major auction houses. Auction in Hong Kong would cease to function has been a long time, the current auction will control the remaining three owners would like the international fur trade flows.

     Owners of the world’s fur farming should be concentrated in northern Europe in recent years, the Danish export raw fur 6-700000000 euros or so, the Finnish Export raw fur around 200 million euros. Denmark has long been the world’s largest mink farming country, although in recent years China’s mink production has more than Denmark, but the water is still made of mink fur quality can not match, the Danish auction in mink industry is still in a very strong dominance .

     Since last year, the international fur market is expected to lack of demand, the price decline phenomenon. Should objectively look at this: First, the international market demand for fur in general have risen slightly, but the increase will not be like 2005 years ago as rapidly as China’s fur export development. Considered carefully, not difficult to find the increment in international trade lies in the main import and export of China’s booming fur. Second, the international fur market demand is relatively stable, there is relative stability in the cyclical development of the characteristics of growth before 2005 is likely to grow only a limited range in 2005, after a certain degree of cyclical decline.

     Problems in Fur Trade

     Raw fur import tariffs are too high. At present I was born under the various headings 43.01 fur imports of goods, tax rates up to 90% to 100%, even if the MFN import tariff is 15% to 20%. In March 2008, the State adjusted value-added tax on imports of raw fur, according to 13% tax rate shall be. Even so, according to the MFN rate basis, I was born and fur imports 35% of the total tax burden is still around. High import duties on raw fur produced a number of negative effects: First, the United States, Japan, the EU did not import duty fur, South Korea has only 4%, I was born and fur import tariffs and other key raw fur production, processing of national and regional disparities are too obvious; Second, I was born and fur with the gap between the developed countries mainly in the variety, quality, excessive protection of domestic raw fur species is not conducive to the optimization and improvement of the quality; three is normal for prices of imported goods and the smuggling of commodity prices, the gap is too large, smuggling profit In additon, objectively lead to smuggling and the spread, so fur as the smuggling of key commodities, raw fur imports is much larger than I actually customs statistics; Fourth fur tanning process is a labor-intensive, high value-added industries, the use of raw material for tanning as alum, unlike leather, impact on the environment is much smaller than the leather, high tariff is not conducive to promoting the Fur processing and fur garment industry’s development.

     Foreign Fund for Animal Welfare threat to my fur exports gradually emerged. In recent years, fur markets in developed countries the protection of animal welfare is increasing. In 2007, the European individual organizations to take fraud and a very unusual way, shooting pictures of Chinese farmers of cruelty to animals, and spread around, causing adverse effects. In response to these negative publicity, the State Forestry Administration of China promulgated the Protection of Animals welfare protection measures. However, China as the world’s largest fur country, is still the most concerned about animal welfare countries. International Fur Association has registered “OA” tab (originalassurance), reassure markets that the fur comes from animal welfare protected areas. The Association currently in Europe and the United States and the Russian market and vigorously promote “OA” tab. The protection of animal welfare can be expected on Chinese fur into the international fur markets more and more impact.

     Rationalize and depth on the development of the Russian market. As the Russian economy improves, the world’s fur industry are optimistic about the Russian market, but its potential is still far not been realized. Russia’s trade environment, poor circulation order instability; Chinese fur products in the Russian market, the overall image to be improved, basically middle and low product; gray barriers and charter tax package still. While both China and Russia have pledged to gradually abolish the “charter package tax”, but since 2006, I have fur exports to Russia, “charter package tax” is not the norm on the rise. “A charter package tax” a serious impact on the normal trade channels, resulting in a more serious unfair competition has also increased business risk.

     Worth noting that the Russian market, the recent positive changes are taking place. It is learned that, in order to stop the fur products “gray” and “black” import, to avoid the tax loss in 2008 the Russian Government has taken to reduce import tariffs on fur products policy measures. Where imports of fur through formal channels, products and tariffs from 20% to 10%. This will result in fur products in the Russian market selling prices decreased substantially, while smuggling of Russian fur garments will also be gradually reduced. This policy has been fur the support of manufacturers and importers.

     China Fur production and processing enterprises to pay attention to the Russian fur adjustments and changes in import regulations, seize opportunities, timely expansion of Russian fur products export. At the same time, faced with limitless opportunities to nurture the Russian market, but also caution. First, the Russian “gray customs clearance” of the trade pattern is almost the end of the Russian government crackdown on the “gray customs clearance”, “rectifying the market order” determined to have been put into action, China’s exports to Russia enterprises standardize their operations, rationalize the mode of trade potential in the must go ahead, pay attention to understand, analyze Russian policy environment, to avoid operational risks. Second, vigorously improve the added value of China’s fur products and brand image, and gradually reverse the Chinese fur products in low-end market position. Third, learn to protect themselves. Poor law and order in Russian society, and many other issues in an objective reality to a certain extent, the overall trade environment unsatisfactory, so that discouraged many Chinese enterprises. But it should be noted that Russia’s judicial operation, or normal, to make good use of Russia’s domestic police, rescue, complaints and other institutions and mechanisms, problems, we should seek prompt I institutions abroad with the help and protection.

     Market Outlook

     As a longer period of rapid development, China’s current production of raw materials fur there more serious “excess” phenomenon, since 2006, prices continued to decline in the domestic fur market, the international fur market, the economy is not enough. Industry generally believe that China’s fur industry is entering a period of adjustment during this period, special breeding size would be more greatly compressed, but the variety and quality will be kept under the pressure of the market has increased; environmental standards and operating costs increase the increase will also fur tanning and deep-processing enterprises in the survival of the fittest produce results. After this adjustment, we anticipate the quality of China’s fur industry as a whole will have a more improved significantly.

     Since 2008, the financial crisis, Europe and the United States, Japan and other major signs of the country’s economic growth has seen a decline, or even negative growth in some countries, a noticeable change in the international market demand. The U.S. financial crisis on the global economic impact of the outbreak has not yet fully apparent, but consumer confidence has been severely decline in consumer demand has become an indisputable reality. The financial crisis on the real economy impact will be very serious, and the financial crisis, intertwined with the entity under the influence of the economic recession, consumer confidence and market prospects will be greatly affected. In this case, it is estimated China’s fur industry in 2009 may be the end of the downward trend since the end of 2005, fur industry, the size of both the size and exports will be flat in 2008, but the return to growth is unlikely.
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