Fur prices plummet

P.E.I. mink farmers, feeling the sting of world markets with pelt prices down 30 to 45 per cent from last year, are hoping for help from the government.

There are about a dozen Island fur farmers, and last week's North American Fur Auction in Toronto is normally their biggest payday. Last year's prices were the highest in 25 years, but this year, buyers from the biggest countries China and Russia are not willing to pay the same prices.

Mink farmers on the Island have asked the federal government for financial help. But as it stands, they are not included in the Advanced Payment Program, a loan guarantee from the government that gives other farmers access to cash advances of up to $400,000.

Don Thompson, a mink farmer from Dunstaffnage, told CBC News Monday while all the pelts sold at the auction, it's a buyer's market these days.

"From the auction's point of view, it sounds good but from the farmer's point of view, it's going to be a real tough year," Thompson said.

"I'm sure most people are probably going to break even on their business. But in this business, you [have] got to do more than break even."

Taking advantage of bargains

Timothy Everest, an international fur broker, agreed that with world markets in constant turmoil, the balance of power favours buyers in the fur industry. Chinese buyers in particular are eager to take advantage of the current bargains.

"The Chinese have actually been buying up a whole manner of different commodities," Everest said.

"They're managing to pick up items that are at historically cheaper prices, so they've got confidence in the future."

The P.E.I. Department of Agriculture said it may be too late to add mink farmers to the loan program this winter but they will definitely be eligible next year.