Mink farmers coping with falling prices, reduced demand

Some NewBrunswickmink ranchers say this province'sindustry is better suited toweatherthe currentcrash in pelt prices than other provinces.

Saturated markets and lower demand for the fur on the international market have resulted in hundreds of layoffsinNova Scotia.

"We expected this to happen," said PaulFlemming, amink rancher,referringto the recent drop in pelt prices.

"It wasn't unexpected."

• Nova Scotia mink industry devastated by low demand, price decline

Flemming'sMink Ranch, which is located outside of Woodstock, has been in operation since the 1930s.

Flemmingsaid he took over the ranch from his father and is now in the process of handing it over to hisnephew.

He said most New Brunswick mink ranches have been around for decades and are accustomed to pelt pricesfluctuating.

"There's been a period where the ranching has been very good in the last few years," saidFlemming.

"That's uncommon."

Mink peltswere, until recently, highly valued in international markets, including Russia and the growingChinesemiddle-class.

Black pelts were selling between $110 and$130 each, largely due to the high demand from Russiaand China.

But this year's mild winter, coupled with those countriesslowing economies, have contributed to much lower pelt prices.Pelt prices have dropped to about $30 to $40.

"We also have major, major,overproduction," saidFlemming,referringtoChina'snew domestic mink ranches.

"So we've almost hit like a perfect storm in this last year."

Flemmingsaid due to most NewBrunswickmink ranches beingestablishedfor decades, the industry in this province is doing better than in others.

Flemming said New Brunswick's industry is better suited for the drop in prices, partially because there are fewer ranchers.

"We've been established for quite some time so we're used to thefluctuationsin the prices," he said.

"This has been an uncommonoccurrencewith the prices going up for a period. And as a result, we knew what was coming. But the ones that are newer into it naturally it will hurt them more because in order for them to get into it, it'scapitalintensive, it takes a lot of money to get started."