May 2009
Almost four months since my last Newsletter and life at Basically Bush has been and still is very busy.
The recession discussed in the January 2009 Newsletter has not had the negative impact that was anticipated
and in fact markets for possum fibre and dressed pelts have increased quite significantly so we are all very
busy –a really good way to be.
Erena and I are enjoying working in our new office at Wairata, Opotiki, opened in December 2008.
Steve now spends half of his time at the tannery where everyone is working very hard to get our increased
orders out. While we didn’t purchase as many summer skins as we would have liked we are looking forward
to buying good winter skins from the hunters from about the beginning of July.
Remember the motto
"SKIN THE BEST and PLUCK THE REST"
Yes we are looking to buy large numbers of 1st and 2nd grade large possum skins this winter. We will buy
a smaller number of medium/large 1st grade skins.
We will buy green and dry skins, but will pay a premium for dry skins as they are more likely to come through
the tanning process with the least amount of lose.
Contact our office for an updated price list
basicallybush@farmside.co.nz or phone 07 315 7765
We are expecting a lot from our possum fibre procurement agents at present as the market for fibre has taken a
sudden turn upwards. Hunters help them meet their TARGETS! We are looking for increased volumes of fibre,
particularly Hand Plucked fibre as that is the market preference.
To our customers and potential customers we thank you for your support while we strive to meet your requirements.
Increased communication with our customers is one of our key focuses this year so expect to hear from us, and
conversely please communicate with us.
We are doing our best to procure the fibre and skins that you all require to operate your businesses successfully.
Kind regards,
Sue Boot
Basically Bush
April 2009
Please note the price paid for fur will vary depending on demand from the manufacturers. Contact us for the latest price per kilo.
January 2009
These are very challenging times to be in business, whether it be the primary sector, manufacturing, or service industry; and the possum harvesting industry is no different; we are all affected by this global economic crises – I’m loath to call it a recession. Contrary to my Newsletter of July 2008 when the “apparent” global economic downturn got all but a very small mention as it did not appear to be affecting us at all then – only six short months ago, it is now a topic that is mentioned almost daily around here as it is having a marked impact on the industry that we are so passionate about.
So the aim of this Newsletter is to inform you the hunter on how this global economic crisis is directly impacting on you, what we are doing to try to improve this current lean period, and our vision for the future.
During an economic crisis potential tourists tend to save their money, hunker down and stay home. Simplistically the flow on effect of that is that the New Zealand knitwear manufactures are nervous about the strength of this current tourist season (a large percentage of the possum merino garments are sold through the tourist industry) and so they are not ordering large volumes of yarn, therefore the yarn manufacturer is not ordering the raw material – that’s possum fibre from us, and so we are unable to purchase the possum fibre from you the hunter.
And for those readers who might be potential customers we would like to encourage you to take an interest in this exciting raw material that has revolutionised the knitwear industry in New Zealand. Possum fibre is hollow, so the possum merino yarn is lighter than cashmere, has a non-prickle factor and is warmer than wool alone. See www.woolyarns.co.nz for more information on possum merino yarn.
Meanwhile Basically Bush is doing all that we can to seek out new customers for this unique raw material. In order to make this unique but expensive raw material more attractive to potential new customers and to encourage our existing customers to continue to purchase possum fibre we must, in these difficult times make the price attractive to them. This will of course reflect the price that we are able to pay the hunter for the fibre.
We are not buying any possum fibre during the month of January, and the price paid to the hunter when we resume buying in February will be $85 per kilogram.
While these are difficult times we ask that you the hunter do not despair as the situation will improve and we are predicting a lift in volume as the season progresses; so we hope that those with a passion for the industry as Steve and I have will “hang-in” and be there to enjoy the good times when they come again.
Meanwhile Merchant Tanners continues to operate albeit at a reduced capacity for the same reasons as the reduced need for possum fibre. Both possum fibre and skins are currently dependent on a buoyant tourist industry for their success.
It is our intention, for hunters who wish to reap the benefit of “skinning the best and plucking the rest” that we will resume buying top quality dried and green possum skins from about the end of February.
Current and potential customers requiring expertly dressed top grade possum pelts can be assured that we will continue to supply the very best. As was mentioned in the July 2008 Newsletter Merchant Tanners is the only New Zealand tannery that was established to specifically dress possum skins and has operated as such for nearly 30 years. It primarily uses an alum tan; can dye almost any colour; bleach; “uptone” and shear pelts.
Contact details to sell raw skins or purchase dressed pelts are:
Phone: 64 6 376 5884
Fax: 64 6 376 5005
E mail basicallybush@farmside.co.nz
Any feed back via the e mail address above is appreciated.
Sue Boot
Basically Bush
December 2008
ups and downs make for interesting business.
We hope you are enjoying a summer break and wish you all the best for 2009
July 2008
Much has happened within Basically Bush since the last Newsletter six month ago.
The price of possum fibre has remained at $105kg
Despite an apparent economic recession our market for possum fibre is still strong. June saw a very strong lift in the volume of possum fibre purchased and we’re hoping for continued good volumes during the next few months.
The purchasing of possum skins however is a little slower then we would like. Now is the season for “Skinning the Best and Plucking the Rest”
We have established a new possum fibre agency in Te Anau making us accessible to more South Island hunters. You’ll soon see Kevin Swan added to our “TEAM”. Meanwhile his details are Phone: work 03 249 7860, home 03 249 7773,
mobile 027 295 0459
Our biggest news is:
Merchant Tanners
Basically Bush has been working closely with Merchant Tanners over the past couple of years with a view to one day purchasing the tannery. Well on 1 April this year we took the big step and are now the proud owners of Merchant Tanners in Woodville, southern Hawkes Bay. Merchant Tanners is the only New Zealand tannery that was established to specifically dress possum skins and has operated as such for nearly 30 years. It primarily uses an alum tan, can dye almost any colour, bleach, “uptone” and shear pelts. During peak times the business employed up to twenty five staff and at its very lean times as few as one staff member remained. We now employ the four staff who were employed by the previous owner.
It is our goal to increase production over the next five years, but for this year we will learn the operation before looking at growing the production.
We do know that there is a market for top grade dressed pelts so it is the top grade that we are concentrating on dressing; so the hunter can be assured of making more on large top grade skins (as opposed to plucking the fur) and furriers can be assured of receiving top grade well dressed pelts from Merchant Tanners.
We also commission tan possum, sheep, alpaca and deer.
Contact details to sell raw skins or purchase dressed pelts are:
Phone: 64 6 376 5884
Fax: 64 6 376 5005
E mail: MerchantTanners@xtra.co.nz
Thank you to all of you who peruse our website and support this exciting industry.
Sue Boot
Basically Bush
December 2007
Just a few days till Christmas and the year has just about finished. The fur has kept coming in and there is still plenty of enthusiasm out “on the hill”. It is my guess that with the weather getting very warm and the flies unbearable things may slow things down a bit.
We will be buying all summer, including over Christmas /New Year for those who intend to keep working; be patient with the agents over this period, as they may not always be available when you want.
There has been a marked increase in fibre availability since we raised the price to $105/kg in September.
As we stated at the time, this increase was necessary to make sure that there was enough raw material to meet the needs of domestic production. This has been achieved and things have stabilized.
We expect that there will be some downward adjustment in the New Year for the price paid per kg, but we do not expect it to be a huge.
Skins
The skins are all finished for the season, with moult, flies and hot weather making the harvesting of skins very marginal. The same problems are still there, not enough good skins, poor handling (slip, degraded leather) and in my view a great lack of knowledge, and lost skill on what is required to present well handled skins for sale.
The unprecedented demand for fur fibre has lead to many trappers deciding to just pluck, and many pelts that could have made better returns dressed have gone that way.
But there is a growing demand for the better grade of pelt, and there is an opportunity for genuine trappers to obtain far better prices than “fibre value”. There is good earning potential in the selective harvesting of top grade skins for pelts, and harvesting the rest for fibre.
In the New Year we will be moving around the country looking for opportunities to harvest fur and skins as well making contact and meeting with those who are at the coal face.
We are hoping to run regional workshops throughout the country over the next 18 months to show trappers and hunters how to handle skins properly, so as to maximize returns, I suspect that we will learn a thing or two ourselves.
We are also looking for trappers/hunters to supply us with skins for the 2008 season and beyond.
Anyone interested in contacting us for further detail on this let me know.
Well that’s all for this letter, and I would like to take the opportunity to thank all those around the country that have supported us in 2007.
When you see possum garments in the stores or being worn, if they are made in New Zealand and you supplied Basically Bush with fur, then it could be your fur in that product.
So, Merry Christmas and have a great time during the holiday period. Don’t eat and drink too much - you will only regret it later, be careful on the roads and be nice to your family.
All the best
Steve and Sue Boot
November 2007
Hello one and all
This newsletter is intended to keep you informed with what is happening with our industry and to keep you all up to date with the issues that are important to those involved with the fur recovery business whether it is with fibre recovery or skins. We will be bringing you an update every month, and will endeavor to discuss one main topic with each posting. In this issue it is the price being paid for fur at present, why is it at this level, is it sustainable what could the future hold?
Prices
This subject is the one that most hunters consider important. A lot of you out there at the coal face, or “on the hill” so to speak continue to tell us that it all comes down to price. You tell us if you want more fur put the price up and while it is important to ensure that you all manage to meet your costs and make an income I will ask you to look at the bigger picture.
But first a quick history lesson. When Basically Bush first started purchasing fur in 1999 the going rate was $40/kg. It was realized quite quickly by those that added value that this price would not produce the sort of volumes that would enable the industry to grow. By the end of 2000 prices were up around the $50-55/kg, and I remember some of our customers at this time asking us “what do you think you are going to have to pay the hunter to ensure that we (the manufacture) are going to have the raw material to grow our business?”. In my naivety I suggested that it could go to $65/kg. This was meet with disbelief, and I was told in no uncertain terms that prices for raw fur at this level would as one put it be unsustainable , I look back on that comment and reflect how far this industry has come.
So here we are now in 2007 with prices for fibre at record highs ($105/kg) and prices for the better grade of raw skins the best that they have been for almost 20 years.
So you might ask what the bigger picture in all of this is. First let’s look at the fibre, why has the price risen to the level that it has? There are several and I will list them below
1. Possum blended yarns are the one point of difference that enable what’s left of our knitwear manufacturing industry to compete with cheap imports from companies that have much lower labour costs than New Zealand, China is a good example. Those companies in NZ that have invested heavily in new technology to keep labour costs down need possum to keep producing, and stay in business.
2. The success of spinners and knitters in NZ developing possum into a high quality unique product has attracted offshore interests that see an opportunity to leverage off the success of local industry, where do they get their raw material from? NZ of course.
3. Over the last 10 years NZ has spent approximately 1 billion dollars on possum control most of it directly killing possums and leaving them to rot. This has made it much more difficult for hunters to find areas that will yield the sort of numbers that are needed to sustain an income.
So to put that all simply the price has reached current levels because the domestic manufactures need more fur to grow their business. At the the same time off shore interests (mainly China) are wanting to get a piece of the action and are using NZ companies to source the raw material, export it to China and add value there. In addition large areas of NZ have had intensive control operations including the use of 1080 that have made possums more difficult to find in some areas. Points one and two have pushed up demand; point three has made that demand more difficult to meet. The result is higher prices paid for raw material.
The Bigger Picture
Possum fibre has become a commodity just like wool, timber, meat etc. and as such is influenced by supply and demand. If demand is high then prices go up if demand drops then prices go down. There is a lesson here that other commodity industries have learnt sometimes at great cost. Simply put it is better to increase demand and add value right through the supply chain and support those that have invested in adding value domestically rather than sending it off shore, and letting someone else add the value. I doubt if the current returns being enjoyed are sustainable in the short term, but who knows I have been wrong before. What I will say is that if the price of fur continues its upward spiral then sooner or latter as in all commodity markets there will be an adjustment most likely downward. You can be sure of one thing; Chinese manufactures do not have the long term interests of the domestic industry at heart.
So what is the message in all of this? Simply that we believe it is in the interest of you the hunter/supplier to support local industry in NZ.
Basically Bush supplies 90% of all the fur used in manufacture in NZ, and it is through our efforts and with the support of the domestic industry that you the hunter are enjoying the returns that you are receiving at present.
It is our company policy to work actively to bring stability and realistic returns to hunters and suppliers in the first instance , and work actively with industry to make sure those returns have longevity. The current prices being paid are a direct result our efforts in the market, and not those sending raw material off shore at the expense of local industry. It is our belief that without a strong domestic base to support it this industry will be at the mercy of those that simply want to buy the raw material for as little as possible and make as bigger profit as they can. This is not what we want to happen to this industry, do you?
That’s enough on this one for now, and I am quite sure that this perspective may not be the view of some, what do you think?
It would be good to have some feed back and comment on this and you can do this by following the links on our web site, and I will endeavor to answer them all.
You can contact me at steveb@farmside.co.nz
Next month
In our next issue I will be discussing the skin market and how it could increase returns to those of you who know how to skin a possum. We will also introduce a regional perspective, and I will pick one region each issue and look at the challenges and opportunities that hunters face there.
Also, have a look at our new on-line catalogue for knitwear. We are able to bring you a good range of products in different styles and colours. We have put a lot of effort into this and it would be helpful if we could have your feed back .
We are also looking to supply feeds and lures at competitive prices if there is enough interest, what do you think?
And finally a new industry body has been set up and incorporated called The New Zealand Fur Council.
There is representation from a broad cross section of all involved from harvesters right through to retail. This is in response to the challenges to all involved to have a voice at a policy and political level on how this resource is managed going forward.
Do we want to see more aerial 1080 used when the possums could be harvested at reduced cost to farmers, rate payers and general taxation?
Does this industry want to have more say?
If the answer is yes then contact us and we can give you more information on how your support could make this happen. nzfc@farmside.co.nz
Watch this space, we will keep you posted on progress.
That’s all for now, keep up all the good work, keep that fur coming in and be sure in the knowledge that your support is making this industry grow.
See you all next month
Cheers
Steve Boot
Basically Bush Ltd
