Not too long ago, buyers who trekked to the mysterious land of Russia seeking the nation's treasure -- sable skins -- were treated by government dignitaries like visiting royalty. Today, the same buyers meet directly with scrappy Siberian trappers and must suffer their scoffs before sometimes returning home empty-handed. Turns out the trappers can get more money for their skins from Russian buyers. So just what happened in only two years?
In a word, capitalism.
The state no longer controls fur production or sales, and now Russian currency can be exchanged for dollars. Instead of turning over their furs to the Soviet government for a few measly rubles that weren't worth much, only to watch the government pocket much-needed hard currency from foreigners, now trappers and farmers in the former Soviet Union most often sell their furs directly to buyers for exchangeable cash. Business at Sojuzpushnina, the former state auction company now owned by Novoexport, has dropped to a fraction of what it was under the old regime. Sellers are free to establish their own prices, and those are increasingly higher than Westerners can afford to pay.
In 1993, Russia exported $63 million worth of fur pelts, according to the Russian state statistical agency. In 1994, exports were more than halved, worth only $30 million.
The reason is simple. Russians are producing less raw fur and consuming more of it. Due to problems obtaining feed, Russian mink farming has been curttailed drastically. Oslo Fur Auctions reports that the Commonwealth of Independent States will offer for export 1.4 million mink skins this season, but other industry experts dispute that figure, saying almost all mink is purchased internally. And trappers in remote regions now have better things to do than go out in snowy 40-degree-below-zero weather; now they have television.
On the other hand, Russian consumers can't get enough of fur. They have money, and fur is a favorite luxury because of their notoriously cold climate. They're keeping what they can to themselves, in both the better and commercial ends. U.S. Russian sable manufacturers complain that they can't even get their hands on top sable skins anymore; yet it's the less expensive furs that Russian shops can't keep in store. And even that isn't enough of a supply to meet their demand. Russian buyers have become major players at international pelt auctions. In September they single-handedly pushed mink pelt price levels up at Scandinavian auctions. Russia imports substantial numbers of finished garments from Greece, Eastern Europe and Hong Kong/China.
The New York Times even ran an article recently exclaiming, "In Russia: Let the People Have Fur!...Russians themselves -- often newly rich, profoundly ostentatious and hellbent on staying warm throughout the six-month winter -- are buying fur as never before."
The fact is, Russia is emerging as one of the three largest fur-consuming countries in the world, along with South Korea and, before long, China.
If cold weather in traditional Western markets sparks demand for sable garments this year, there could very well be a shortage. Only about 125,000 sable skins, less than 2/3 of the amount normally up for auction at Sojuzpushnina, will be available this year. And that amount isn't even certain. Sojuzpushnina no longer holds regularly scheduled auctions (the normal October sale will take place Dec. 1 with 25,000 sables), but schedules them when it can come up with the skins. Seattle Fur Exchange has established itself as an outlet for Russian sable, but some experts speculate that Seattle won't be able to obtain enough skins for an offering this year.
Russia Offers Fur Fairs
The Russian fur market is truly exploding, and already the trade is organizing fairs to service it. Comtek International has scheduled Moda Spring '96, which it calls Moscow's premier fur/fashion exhibition, for Mar. 26-29, and the first Mexa, produced by OST-West-Partner Gmbh for furs and fur processing, was recently rushed forward from 1996 to later this month.
Moda will be held Mar. 26-29 at Krasnya Presnya. Manufacturers of fur garments are eager to tap into this growing consumer market, which currently goes to Greece for much of its fur fashions. The fair's exhibit space -- taken by more than 300 international exhibitors including Global Fur and Rosenberg & Lenhart „ is sold out. For information, contact Comtek at its Connecticut office at (telephone) 203-834-1122 or (fax) 203-672-0773.
The first Mexa was scheduled to be held in Moscow in 1996, but due to Russian demand. The fair's organizer is a German company based in Weiden that has a 10-year track record of organizing trade fairs in Eastern Europe, especially in the Russian Federation, the former Czechoslovakia and Kazakhstan. According to a spokesperson for the company, the fair was moved up to Nov. 21-23 "due to the great need of furs and fur processing equipment" in Russia.
Despite last-minute preparations, the fair quickly gained more than 100 exhibitors, including Alaska Brokerage, the Fur Council of Canada, Global Fur, Lowenstein, Moyle Mink, North American Fur Auctions, Rosenberg & Lenhart, Saga Furs of Scandinavia and Tanbec.
"These companies, coming from all parts of the fur branch, are now looking for possibilities of finding new contacts to sell furs, process furs, buy products from Western companies or to cooperate with barter trades," said OST-West-Partner Gmbh. "Regarding the surprisingly fast reaction from companies to participate in Mexa, we had to book an additional hall in order to provide interested companies with a booth. This second hall is now nearly sold out.
Another Mexa is scheduled for Nov. 4-6, 1996. For information contact OST-West-Partner Gmbh at (telephone) 0961-48148-0 or (fax) 0961-416-03-99.
