Hi all and welcome to 2015. 
Last year ended on a bit of a flat note with prices at the bottom end of what had been offered over the previous eighteen months. While the exchange rate had some influence in this it was not the main contributing factor. As mentioned in previous posts China drives supply and demand in the market. When China is on a roll then prices tend to trend up on the back of strong demand. However the market in China was cautious last year due to inventories that had not been cleared from the 2013 season hence the downward trend in price. This situation still persists in the Chinese market, and I expect that we will continue to see the same trends for 2015 as we saw for 2014. I do believe however that the market has bottomed out in this regard,and that prices should stabilize over the 2015 season.
All in all I think that this year will be very similar to last, there will be moderate demand, with all buyers being very price sensitive in the market. There will undoubtedly be spot prices this year that are above the norm, but remember the old saying a bird in the hand is worth two in the bush.
There will be some moderate demand for skins this year but we will be selective in terms of the region they come from ,and the grade.This year we are creating an approved supplier register for skin purchases,so if you would to supply us this year you will need to make arrangements with us early in the season to ensure that you are on the list.

Check out the link below, a good news story out of the US, let us know if you think that we should do something like this here. I am sure the P.C brigade might have something to say.
I say that we need something like this to make sure that our industry is proactive in making sure that the next generation of trappers/hunters are comming through.  
 http://www.outdoorlife.com/articles/hunting/2015/01/no-name-gang-young-wisconsin-trappers-hold-line
I have enclosed a photo below from the holidays .Just after new year family and friends head up the river and visit one of the huts. This year we had a young German couple on the team as well.This was a totally new experience for them and they loved it.
The bush needs friends,and the more we use it the safer it will be for future generations

Good hunting and trapping


Steve Boot

  

          

As we predicted in June, the fibre market has softened further forcing us to decrease the price that we are paying you for possum fur. From Friday 19 September we are paying $100 per kg for all types of fur -H/P, M/P and slyped. This could change if market conditions improve.
We are now buying raw skins for dressing; contact us for more details.
Hope that you saw the positive newspaper article/s... promoting the Woolyarns brand, Perino (merino and possum fur). Read it here.

NZ possum hits
fashion catwalk
By SALLY RAE
WITH apologies to Dame Edna,
it's Goodbye Possums.
New Zealand's possum fur
industry is estimated to be
worth $130 million annually to
the country's economy.
Perino, a blend of possum fur
and cashmere or merino yarn,
recently featured on the catwalk
in garments from the latest collections
from Zambesi and The
Noble Savage.
While possum is popular in
the tourist market, the move into
high fashion is exciting Lower
Hutt manufacturer Woolyarns
NZ, which sees big returns.
"High-end fashion designers
are asking for more from their
suppliers. Products need to
meet high standards in regards
to quality and sustainability.
Perino fits all these criteria,"
Woolyarns marketing manager
Jimad Khan said.
Perino used brushtail possum
fur, cashmere or fine merino
wool, he said. Yarns were lightweight,
low-pilling, breathable,
and anti-odour.
Woolyarns plans to exhibit its
Perino yarn collection at next
year's Pitti Immagine Filati in
Florence, Italy, the main international
event for the knitting
yarn industry.
Presenting Perino to the international
market was an important
next step for Woolyarns as it
expanded into high fashion, Mr
Khan said. Woolyarns' aim was
to increase sales of Perino by
25% through export sales over
the next two years.
The company sources all its
possum fibre from Basically
Bush, which is based in Wairata,
Opotiki. The business, established
by Steve and Sue Boot in
1998, harvests possums and processes
possum skins at the company's
tannery in Woodville,
southern Hawkes Bay.
It sourced about 45 tonnes
nationally and about 1500kg of
that came from Otago and Southland,
Mrs Boot said.
Globally, fur was very fashionable
and possum fur trim added
to garments was also proving "a
huge hit", she said.

Hello Possum Hunters

Here is an update on the state of the industry

The current fur price is stable. There is unlikely to be any upward movement in price. In fact market conditions could see a price drop mid-season.

We anticipate continuing to buy at current volumes for the remainder of the season.




Demand for fur skins has declined globally by 50%. There is currently little demand for possum on the international market.

We are buying green skins for fur recovery. The price is dependent on size and fur cover.

For more information ring or e mail Steve. steveb@farmside.co.nz

A lot of you have been asking us what is happening with skins this year. Last year we purchased strongly on the back of very positive demand from off shore. Unfortunately for us this demand did not come to fruition, and at the end of last year we found ourselves with much larger stocks that we anticipated. We have been slowly working our way through this, and we expect to start looking for skins in late June early July.
However this year we will be looking to do things quite differently. For those of you in the North Island who want to supply us with skins this year you will have to deliver them to our Woodville tannery direct, or make arrangements with us for their delivery. For regular clients we will help with freight and logistics but we will not be grading and buying skins on the  road  this year in the North Island.
Our reasons for this are simple.Last year we had to much down grade from road buyers, and skins were arriving in poor condition, we are  looking to have more consistency in our grading and handling this year. Prices for skins this season will be around 20% less than last season,

We appreciate that some of you will have some issues sending skins away for grading and waiting for payment. However we ask you to work with us to build trust between both parties to make this work.
This year we will be looking for all grades and will be encouraging hunters to skin everything if they want to.
This season we will be offering supply contracts to selected hunters for both fur and skins. If you would like to find out more contact us via the email address   basicallybush@farmside.co.nz.

Fur prices remain consistent at $105/kg, and indications are that there will be no significant change over the next two  months.

Steve and Sue

A belated welcome to 2014 to all possum hunters out there from the Basically Bush Team.

At the end of last year we did explain that the market was "soft", i.e. demand for fibre and skins had dropped off. We have been waiting to see what the market might bring for 2014. We, down here in the South Pacific, are influenced by global markets. Products made from possum fibre and fur skins must compete in the market with other products of similar value. That's a lot of competition. That, in addition to the fact that markets are "soft" result in reduced prices paid for the raw material.

We believe that there will not be high prices paid this year. That means that for you, the hunter, fibre is unlikely to fetch more than $110/kg in the middle of the season, and the price paid for raw fur skins will be corresponding lower.

Our current price of fibre is $105/kg.

We are not buying skins this summer season as the good buying last season means that we still have ample stock. Due to an over supply of fur skins on the world stage prices paid for top quality furs such as mink have dropped by 50% over the past 6 months.. Therefore the international demand for possum is low. Our domestic sales of dressed skins is satisfactory, but it is export sales that enables us to buy significant numbers of raw skins. While this is market is "soft" buying will be limited. We will keep you informed as to when/if we commence buying raw skins. 

We still believe that we have a wonderful product and that there is a great environmental story that goes with it.

Like all commodities there are good years and not such good years; we've all got to take the "downs with the ups".

Talk to you again soon.

Sue & Steve

Well here we are and 2013 is almost over,where did the year go.
As you will all be aware we have had a very mixed bag this year,Demand for plucked fur has been quite flat ,with export demand being at its lowest for several years. I think that most full time  hunters are now beginning to understanding how the market works, and are trading accordingly. Prices will continue to be flat for the first quarter of 2014,and I don't expect export demand to pick up until later in the year. This may not be what you all want to hear, but the reality is, and I have gone on about this in past blogs ,that possum is just a commodity and is subject to market conditions like any other.
I believe that this industry has a future, but in my view it will continue to be volatile for 2014, and hunters will need to be looking for a consistent price rather than always looking for the best. The old saying a bird in the hand is worth two in the bush will be very relevant for next season
Demand for raw skins was robust in 2013, with prices at an all time high. It is not clear yet if demand will be the same for 2014, but there will always be a market for good quality well prepared skins,and those hunters that take this on board and supply accordingly will do well, those that don't will be disappointed.
To summarize I  think that 2014 is going to be subdued and just average. Demand out of china will be flat,and prices will be very similar to this year. The domestic market has been well supplied this year ,and stocks are high.and demand from this sector will be less.  Hunters will need to watch the market very closely in 2014 and not have high expectations.

There is one bit of important news that will affect most hunters. This may be initiated in 2014 or 2015, but it is going to happen. The days of cheques are numbered. The banks are telling us that it is the governments intentions that they will be phased out within two years. the days of being able to take a cash cheque into the bank and receiving cash will be over. This will affect you all in different ways, but the bottom line is that getting cash for your fur will ultimately be a thing of the past . For us as fur buyers we can expect a lot more scrutiny from IRD, and as some of you will be aware they do not have a sense of humour when it comes to non compliance, so be warned

Thats it for this year, have a good holiday break,and lets all hope that things look up for 2104
From the team at Basically bush have a merry Christmas and a great new year

Steve and Sue Boot

As you will all have noticed the price for possum fur has dropped to $110 /kg. Harvesters are always asking me when will the price go up, or I have been told it is going to go to $200/kg. There are some fundamentals that all harvesters need to understand and be aware of if they are going to get the best return for their efforts
The first one is that possum fur is a commodity just like wool,meat, raw milk,logs etc,and as such the price is governed  by supply and demand.For possum fur when demand is high and customers want your product then you have a market,if the supply of fur does not meet the demand then customers will offer more to secure their needs ,and the price goes up. On the negetive side when the amount of fur on offer is more than the customers require then the price goes down. this is the basic law of supply and demand. Ask any farmer ( all farmers are commodity producers) and they will tell you that unless you understand supply and demand, and conduct your business accordingly them you will not prosper in a free market.

The second thing that fur harvesters need to understand is that all commodities have a price point,which when exceeded makes that commodity to expensive for the customer ,and they will look for alternatives.
All of you who have been in the harvesting business for the last five years or so will remember how pleased they were when possum fur reached $145/kg,and I can remember many hunters telling me with firm conviction that it was  going to go to $200/kg.So why have prices dropped in the last couple of years, why are you not getting your $200/kg
The simple truth is that possum fur priced itself of the market. There is a whole chain of businesses that add value to possum fur the spinner,the knitter, the wholesaler and the retailer. All of them have to make some profit, or they would not be in business. At the end of this value adding process the finished goods have to purchased by the retail customer, if the goods are to expensive then the customer will look for better value for their money
The domestic market has understood this well for many years, it was international demand that drove the price to the highs we saw several years ago. International customers have now realized what the domestic market already understands, that there is a point at which possum fur becomes uneconomic
So all you hunters out their remember this when the price gets beyond what the market can tolerate there will always be a re bound in the other direction,this is the current situation now
In other word be careful what you wish for

Cheers
Steve

 

Hello to one and all
I hope that all of you have survived the wild weather we have had over the last week. I have had lots of conversations with hunters all over the country about how difficult it has been recently to get out on the hill. One of our hunters arrived at our base several days ago with a harrowing tale of fording wild rivers and traversing dangerous slips to get out of the bush, a little poetic licence I think. On a more serious note as all those who work in the field know possum hunting is very dependent on the weather, and I know that there will have been times over the last week or so that some of you my have found yourselves in genuinely hairy situations. We all know that this  goes with the territory, but take care we need you to keep catching possums

The market update this week remains similar to our last post. Demand is still weak and we expect it to remain so for the rest of the year. Things will change when demand from offshore picks up, but any movement in this regard is very dependent on the exchange rate. The stronger our currency is against the US dollar the more constrained export demand will be, lets hope the Americans can get their house in order and get their currency sorted.

The fur price seems to have settled down a bit in the last couple of weeks. The current price of $110/kg should remain the benchmark for the rest of the year. We are firmly of the opinion that any further pressure from markets to lower the price paid to hunters will have a very negative affect on the supply chain, and will continue make every effort to ensure that the price remains stable.
That's it for now ,please let us know your thoughts and issues in the coming weeks,you never know we may be able to
 help.
All the best
 Steve and Sue   

      

Hello Possum Hunters,
We hope that you like our new website specific to you, the hunters, who as we've always said are an important part of our organisation.
We understand that harvesting possum fibre and skins is hard work and we try to support you to the best of our ability; unfortunately we have no control over market forces - i.e. supply and demand and hence the price we can pay for fur and skins. The current price decreases for fur are a result of low demand - China is buying very little and our domestic customer can only buy what in turn they can sell as yarn - again dependent on demand for yarn.
Through this period we will support those hunters who over the past twelve months have supported Basically Bush. Thanks to those of you who support us and we look forward to improving fur markets.
Meanwhile we've had an awesome skin buying season, thanks to all of you who have attended workshops and supplied us with skins. The season is now coming to an end, so no more skins after the end of October please.
Talk to you again next week.
Sue & Steve