The fur industry in Canada has seen ups and downs, but in spite of being pelted, the industry is still alive and kicking.

"Fur prices had been creeping up for the last few years," says Dean Berezanski of Manitoba Conservation's fur-bearer management unit. "But February saw some very good price increases. There was a lot more competition among buyers."

From fashion design to garment production, the industry generates a turnover of about $800 million annually, a boon to about 60,000 Canadian trappers and 2,000 ranchers.

For the five-year period from 1999 to 2004, Industry Canada shows Canadian fur exports increased 44.3 per cent from $250.1 million to $360.9 million.

Ashoke Dasgupta, Business Edge
Dave Bewick of North American Fur Auctions says more than 80 per cent of Canada's fur apparel heads to the United States.

Berezanski explains that Winnipeg's North American Fur Auctions (NAFA) gathers Canadian and American pelts and brings them to the city for cleaning and grading.

Pelts are then auctioned, the major forums being NAFA, Fur Harvesters in North Bay, Ont., and Western Canada Fur Auctions in Vancouver.

For Manitoba's 7,500 licensed trappers, marten is the No. 1 seller, and beaver second, says Berezanski.

Other popular furs are arctic fox, bobcat, Canadian lynx, coyote, ermine, fisher, mink, muskrat, otter, raccoon, red fox, squirrel, striped skunk, wolf and wolverine.

The province's trappers, almost 60 per cent of whom are aging Aboriginals, Metis or non-status, sold about $3 million of raw fur at NAFA in 2004.

Who are the buyers?

More than 80 per cent of Canada's fur apparel heads to the United States, but many fur pelts are shipped to other countries as well.

"Russia, China and Korea have developed an appetite for fur," says Dave Bewick, NAFA's vice-president of Canadian wild fur operations. "These new markets have exerted an upward pull on prices."

The growth in popularity of furs in the Eastern market may be due to fashion trends, technical innovations that have made the garments lighter, or growing affluence in the area.

"Fur sales are linked to the performance of major stock exchanges like those at Tokyo, Toronto and New York," says Stuart Jansson, treasurer of the Canadian National Trappers' Alliance. "People buy luxury items when times are good, and there are good prospects in Asia and the Pacific Rim."

But in spite of increasing demand, the fur industry faces significant challenges - the biggest of which may be animal activists and protesters.

"We don't understand why anyone would wear real fur when alternatives like fake or acrylic fur are available," says Vicki Burns, executive director of the Winnipeg Humane Society. "Even dog and cat fur from China are in the market. We're concerned about the sorts of deaths died by wild fur-bearers.

"Some fur operations like the seal hunt are propped up by the federal government, which is wrong. They should promote eco-tourism instead, which offers long-term sustainability."

Canada's annual seal hunt has long been protested, and this year attracted the attention of famous animal activists.

Sir Paul McCartney and his wife Heather Mills visited Canada in early March, urging officials to stop the annual hunt.

Other stars voicing opposition were 1960s film star Brigitte Bardot, television's MacGyver Richard Dean Anderson and Pamela Anderson, who has requested a meeting with Prime Minister Stephen Harper to discuss the issue.

George Clements took early retirement from being a school principal to devote his life to animal welfare.

Now the director of Fur-Bearer Defenders, a non-profit protection agency based in Vancouver, Clements says the market is changing, and fewer animals are trapped each year in North America.

"The fur industry was no longer functioning as it once did, until recently," Clements says. "There has been a decrease in the number of animals trapped almost each year since, until recently."

According to AnimalRights.net, in 1980, roughly 26 to 28 million were trapped in the U.S., and 5.5 million in Canada. Statistics Canada data shows Canadian wild pelts sold in 2003 were less than a million (911,250.)

"Trappers sought more viable ways of supporting themselves. Only a few desperate, older trappers persist," adds Clements. "Trappers' associations, which will rapidly disappear without membership support, are unlikely to confirm this fact, though their budgets may verify it."

The wild fur industry faced a major blow in 1991 when the European Union (EU) banned all wild fur imports from any country using the leghold trap. A five-year time limit was imposed, but Canada obtained an extension by threatening action under the General Agreement on Tariffs and Trade (GATT).

In 1997, the U.S. filed for action under the World Trade Organization, which ruled that no country should interfere in the trade practices of another on moral or ethical issues alone. In 1998, Canada and the U.S. negotiated a trapping agreement seeking permanent exemption from the fur ban, but that agreement is still facing opposition and debate.

The resulting decrease in wild fur exports to the EU have triggered a shift in the Canadian fur market - from trapping to farming. According to the Fur Council of Canada (FCC), of the more than two million fur pelts produced annually, about half are now farmed.

The most commonly farmed fur animal is mink, although fox and chinchilla are also popular.

In spite of sometimes bringing negative attention, animal activism can bring about good change in the industry, says Robert Cahill, executive director of the Fur Institute of Canada (FIC). "Over the years, some animal welfare activists' activities made us look at our practices afresh, leading to the humane trapping and farming acceptable to more consumers."

Cahill also points out that animal activism was what spurred the International Agreement on Humane Trap Standards, signed in 1997 by Canada, the EU, the U.S. and Russia.

Another challenge in the fur business is coming from the inside, as many younger people are not choosing to follow in their elders' trapping footsteps.

To encourage youth to enter the industry, the FIC is working with the Manitoba First Nations Education Resource Centre to develop trapping, hunting and fishing modules for implementation in the northern Manitoba school system. Participants in this program include Manitoba Conservation and the Manitoba Trappers' Association.

The FIC has also initiated "Reconnecting with the Land," an alternative approach to education including trapper training and outdoor skills for youth in the Northwest Territories, with help from the local school board and government departments.

But challenges or not, the fur industry is not giving up.

The FCC plans a major repositioning strategy for Canadian fur products in the fall to exploit emerging opportunities in global markets while protecting Canadian manufacturers from intense overseas competition.

"Our new 'Beautifully Canadian' campaign and label will promote the superior quality of Canadian furs at a time when the trade is riding a strong resurgence in global fashion markets," says FCC's executive vice-president Alan Herscovici.

The new campaign will include billboard and print advertising across Canada and internationally, as well as in-store promotional materials.

"Fur has been an integral part of Canadian history and culture, and the fur trade is committed to the sustainable use of wildlife and the maintainance of high animal-welfare standards.

"Like the rest of the Canadian garment industry, we are facing a very serious challenge from low-cost producers and, in response, will play to our strengths: Extraordinary craft skills and beautiful furs," Herscovici says.

Canadian Fur Industry

* People in the fur trade:
- 60,000 trappers (including Aboriginal communities)
- 2,000 people in fur farming
- 2,500 people in manufacturing and processing
- 2,500 people in retailing
- 1,000 people in related services

* Exports (in $ millions):
- Raw furs: 1999 – $132.9; 2004 – $232.2
- Dressed furs: 1999 – $21.5; 2004 – $37.39
- Fur garments: 1999 – $95.7; 2004 – $91.4
- Total: 1999 – $250.1; 2004 – $360.9

* Production:
- more than 2 million pelts produced annually in Canada
- roughly half are farmed

* Furs produced:
- wild: muskrat (35%), beaver (22%) and marten (17%) Others include fox, coyote, squirrel and raccoon
- farmed: mink, fox, chinchilla

* Major facilities:
- fur garment manufacturing: Montreal (80%) and Toronto
- fur dressing: Montreal and Winnipeg
- auction: Toronto, North Bay, Ont. and Vancouver

Source: Fur Council of Canada (www.furcouncil.com)

Web Watch: www.trapper.ca

(Ashoke Dasgupta can be reached at dasgupta@businessedge.ca)