2009: Fur Industry Or Will Emerge From The Downward Trend

  Animal fur is my import and export of bulkdevelopment of the characteristics of growth before
commodities, the domestic market also expanded in2005 is likely to grow only a limited range in 2005,
recent years. China fur animal breeding industry andafter a certain degree of cyclical decline.
its gross Piga industries to the concern by the people     Problems in Fur Trade
and allow for rapid development, along with the     Raw fur import tariffs are too high. At
reform and opening up the rapid development of thepresent I was born under the various headings 43.01
national economy and people's quality of life andfur imports of goods, tax rates up to 90% to 100%,
substantial increase in the level of consumption ofeven if the MFN import tariff is 15% to 20%. In
valuable fur animal products Demand is increasingMarch 2008, the State adjusted value-added tax on
results. Fur Products With the improvement ofimports of raw fur, according to 13% tax rate shall
people's living standards, consumers are no longerbe. Even so, according to the MFN rate basis, I was
simply a group of high income groups. Today, China inborn and fur imports 35% of the total tax burden is
terms of fur production or consumption, havestill around. High import duties on raw fur produced a
become eye-catching large market.number of negative effects: First, the United States,
     China's fur industry started relatively late,Japan, the EU did not import duty fur, South Korea
starting lower, to date, has not yet reached ahas only 4%, I was born and fur import tariffs and
satisfactory level of development. But after years ofother key raw fur production, processing of national
rapid growth, China have the fur has been aand regional disparities are too obvious; Second, I
considerable scale in the international market play anwas born and fur with the gap between the
increasingly important role as the world's largest furdeveloped countries mainly in the variety, quality,
and fur products producers.excessive protection of domestic raw fur species is
     After years of development, China's furnot conducive to the optimization and improvement
processing has Wenju in the world, China hasof the quality; three is normal for prices of imported
become the world's fur processing base. According togoods and the smuggling of commodity prices, the
the European fur estimate that 80% of the world'sgap is too large, smuggling profit In additon,
fur manufacture in China. China has become the mostobjectively lead to smuggling and the spread, so fur
important foreign fur auction buyers, in 2007, I furas the smuggling of key commodities, raw fur
processing trade exports reached 454 million U.S.imports is much larger than I actually customs
dollars, accounting for 49% of fur exports, surpassingstatistics; Fourth fur tanning process is a
even the general trade exports. This shows thatlabor-intensive, high value-added industries, the use of
China's Qiu Piga than the fur farming industryraw material for tanning as alum, unlike leather,
developed more than half of China's exports of rawimpact on the environment is much smaller than the
fur skin from abroad.leather, high tariff is not conducive to promoting the
     Import and export trade ofFur processing and fur garment industry's
     January to October 2008, China's totaldevelopment.
imports and exports of fur 1.182 billion U.S. dollars, up     Foreign Fund for Animal Welfare threat to
by 5.1%. One fur imports 411 million U.S. dollars, upmy fur exports gradually emerged. In recent years,
22.6%; fur exports 771 million U.S. dollars, down 2.3%.fur markets in developed countries the protection of
January to October 2008 imports of raw materialsanimal welfare is increasing. In 2007, the European
fur .. 9.9 billion U.S. dollars, up 23.5%; exports of 269individual organizations to take fraud and a very
million, compared with the same period in 2007unusual way, shooting pictures of Chinese farmers of
increased 12%.cruelty to animals, and spread around, causing
     Fur imports mainly raw materials, accountingadverse effects. In response to these negative
for fur class I 96.6% of total imports of goods.publicity, the State Forestry Administration of China
Where Scandinavia is the world's largest fur producingpromulgated the Protection of Animals welfare
animals, but also my main source of imports of rawprotection measures. However, China as the world's
materials fur, I am more than half of fur imports oflargest fur country, is still the most concerned about
raw materials from Northern Europe. Denmark is theanimal welfare countries. International Fur Association
largest importer of my fur, fur raw material importshas registered "OA" tab (originalassurance), reassure
accounted for about 1 / 3.markets that the fur comes from animal welfare
     In recent years, I have fur imports of rawprotected areas. The Association currently in Europe
materials continued to grow. 2001 Fur raw materialsand the United States and the Russian market and
imported 172 million U.S. dollars in 2007 increased tovigorously promote "OA" tab. The protection of
374 million U.S. dollars, 2.17 times in 2001. This showsanimal welfare can be expected on Chinese fur into
that the gradual increase of China's fur processingthe international fur markets more and more impact.
capacity, while fur processing quality has reached a     Rationalize and depth on the development of
higher level; the other hand, shows that our furthe Russian market. As the Russian economy
animal breeding industry lags behind the domestic Qiuimproves, the world's fur industry are optimistic about
Piga industrial development, the domestic productionthe Russian market, but its potential is still far not
of fur raw material prices, quality can not satisfy thebeen realized. Russia's trade environment, poor
domestic and international market demand.circulation order instability; Chinese fur products in the
     After three decades of China's fur exportsRussian market, the overall image to be improved,
more than 10 years of sustained and rapid growth tobasically middle and low product; gray barriers and
2005, exports of 2.585 billion yuan of China's fur tocharter tax package still. While both China and Russia
reach a record high. However, in 2006 that thehave pledged to gradually abolish the "charter
drastic decline in a decrease of 57%. 2007 in 2006,package tax", but since 2006, I have fur exports to
again based on the relatively large decline inRussia, "charter package tax" is not the norm on the
January-October 2008 Fur exports have not yet outrise. "A charter package tax" a serious impact on the
of a downward trend. Fur exports fell for manynormal trade channels, resulting in a more serious
reasons, there are macro-economic factors, butunfair competition has also increased business risk.
there are also the reasons for their fur industry. First,     Worth noting that the Russian market, the
a country of "two highs and one owned" policy afterrecent positive changes are taking place. It is learned
the introduction of enhanced environmentalthat, in order to stop the fur products "gray" and
protection requirements leather processing, leather"black" import, to avoid the tax loss in 2008 the
included in the prohibited category in processing tradeRussian Government has taken to reduce import
catalog. While national policies on the leather and furtariffs on fur products policy measures. Where
industries differ, but the fur industry, the impact is stillimports of fur through formal channels, products and
relatively large. Second, in 2006, the Statetariffs from 20% to 10%. This will result in fur
Administration of Taxation carried out to combatproducts in the Russian market selling prices
evasion of VAT special rectification activities, Hebeidecreased substantially, while smuggling of Russian
zaoqiang, Suning and other leather processing zonesfur garments will also be gradually reduced. This policy
due to major problems have become more focused,has been fur the support of manufacturers and
the leather will become a focus of inspectionimporters.
commodities, except for some illegal businesses were     China Fur production and processing
penalties, for issuing the export of value-added taxenterprises to pay attention to the Russian fur
invoices reflect the "bubble" also disappeared. Third, inadjustments and changes in import regulations, seize
2007 the State fur garment export value-added taxopportunities, timely expansion of Russian fur
cut, after a considerable part of the normal exportsproducts export. At the same time, faced with
to Russia fur products changed from "charterlimitless opportunities to nurture the Russian market,
package tax" means shipped, which the customsbut also caution. First, the Russian "gray customs
export statistics in the fur will also have a certainclearance" of the trade pattern is almost the end of
degree of decline in performance. Although thethe Russian government crackdown on the "gray
second half of 2008 raised the country Leathercustoms clearance", "rectifying the market order"
export tax rebates, but the effect of policies remainsdetermined to have been put into action, China's
to be seen.exports to Russia enterprises standardize their
     On the export of the country is concerned,operations, rationalize the mode of trade potential in
Russia is a major exporter of fur me, fur exports tothe must go ahead, pay attention to understand,
Russia in 2007 I have only 105 million U.S. dollars,analyze Russian policy environment, to avoid
down 60 percent compared with 2006, January tooperational risks. Second, vigorously improve the
October 2008 I fur exports to Russia just 34.28added value of China's fur products and brand image,
million U.S. dollars, up 58.7% year on year decline. I furand gradually reverse the Chinese fur products in
exports to Russia dropped 4 consecutive years, haslow-end market position. Third, learn to protect
its own reasons, such as a continuous reduction inthemselves. Poor law and order in Russian society,
market demand caused by warmer winters in 2007,and many other issues in an objective reality to a
Russia abolished Furs, Leather, retail market, resultingcertain extent, the overall trade environment
in ineffective marketing channels, etc., butunsatisfactory, so that discouraged many Chinese
"tax-charter" leads to loss of Statistics Quasi is alsoenterprises. But it should be noted that Russia's
important factors.judicial operation, or normal, to make good use of
     Hong Kong is our second largest export furRussia's domestic police, rescue, complaints and other
region, Hong Kong fur exports in recent years, Iinstitutions and mechanisms, problems, we should
have a steady growth in the customs statistics,seek prompt I institutions abroad with the help and
Russia has been ranked No. 1 over. 2007 years andprotection.
the Hong Kong fur exports 351 million U.S. dollars,     Market Outlook
down 7.3%; January to October 2008 in the Mainland     As a longer period of rapid development,
to Hong Kong fur exports 367 million U.S. dollars, anChina's current production of raw materials fur there
increase of 25%. I am in Hong Kong fur exports,more serious "excess" phenomenon, since 2006,
relatively stable, showing the mainstream of theprices continued to decline in the domestic fur
world fur market stability and maturity.market, the international fur market, the economy is
     The international marketnot enough. Industry generally believe that China's fur
     International fur market in raw materialsindustry is entering a period of adjustment during this
mainly by the auction completed, the formation ofperiod, special breeding size would be more greatly
Denmark, Finland, North America and Hong Kong, thecompressed, but the variety and quality will be kept
four major auction houses. Auction in Hong Kongunder the pressure of the market has increased;
would cease to function has been a long time, theenvironmental standards and operating costs increase
current auction will control the remaining threethe increase will also fur tanning and deep-processing
owners would like the international fur trade flows.enterprises in the survival of the fittest produce
     Owners of the world's fur farming should beresults. After this adjustment, we anticipate the
concentrated in northern Europe in recent years, thequality of China's fur industry as a whole will have a
Danish export raw fur 6-700000000 euros or so, themore improved significantly.
Finnish Export raw fur around 200 million euros.     Since 2008, the financial crisis, Europe and the
Denmark has long been the world's largest minkUnited States, Japan and other major signs of the
farming country, although in recent years China's minkcountry's economic growth has seen a decline, or
production has more than Denmark, but the water iseven negative growth in some countries, a noticeable
still made of mink fur quality can not match, thechange in the international market demand. The U.S.
Danish auction in mink industry is still in a very strongfinancial crisis on the global economic impact of the
dominance .outbreak has not yet fully apparent, but consumer
     Since last year, the international fur market isconfidence has been severely decline in consumer
expected to lack of demand, the price declinedemand has become an indisputable reality. The
phenomenon. Should objectively look at this: First, thefinancial crisis on the real economy impact will be very
international market demand for fur in general haveserious, and the financial crisis, intertwined with the
risen slightly, but the increase will not be like 2005entity under the influence of the economic recession,
years ago as rapidly as China's fur exportconsumer confidence and market prospects will be
development. Considered carefully, not difficult to findgreatly affected. In this case, it is estimated China's
the increment in international trade lies in the mainfur industry in 2009 may be the end of the
import and export of China's booming fur. Second,downward trend since the end of 2005, fur industry,
the international fur market demand is relativelythe size of both the size and exports will be flat in
stable, there is relative stability in the cyclical2008, but the return to growth is unlikely.