In 2020. Denmark govt ordered shutting of all mink farms on suspicion that they were carriers of C-19. Only in Dec 2022 was this ban lifted. So effectively supply came to near 0 for 2 years. My guess is the demand went away too since Denmark supplies 40% of global mink fur demand. The concern here is price getting low (signalling low dem…
In 2020. Denmark govt ordered shutting of all mink farms on suspicion that they were carriers of C-19. Only in Dec 2022 was this ban lifted. So effectively supply came to near 0 for 2 years. My guess is the demand went away too since Denmark supplies 40% of global mink fur demand. The concern here is price getting low (signalling low demand) even though supply was shut. I would expect the mink fur price to be high last 3 years if supply has been shut off but that was not the case.
Would love to see this play out purely from an intellectually curious exercise.
Thanks for your comment. Demand was also low due to covid in 2020. 2021 saw relatively high prices. In 2022 the Lock-down in China and Russian war (both are the biggest client groups) - lowered demand. So I think these events should explain, why the price was low in 2020 and 2022.
In 2020. Denmark govt ordered shutting of all mink farms on suspicion that they were carriers of C-19. Only in Dec 2022 was this ban lifted. So effectively supply came to near 0 for 2 years. My guess is the demand went away too since Denmark supplies 40% of global mink fur demand. The concern here is price getting low (signalling low demand) even though supply was shut. I would expect the mink fur price to be high last 3 years if supply has been shut off but that was not the case.
Would love to see this play out purely from an intellectually curious exercise.
PS: Great pick. Great write up! :)
Link to an interesting article: https://www.theguardian.com/environment/2022/nov/14/ghost-farms-the-mink-sheds-abandoned-to-the-pandemic
Thanks for your comment. Demand was also low due to covid in 2020. 2021 saw relatively high prices. In 2022 the Lock-down in China and Russian war (both are the biggest client groups) - lowered demand. So I think these events should explain, why the price was low in 2020 and 2022.