North Bay Fur Harvesters' CEO reacts to industry shakeup

North American Fur Auctions is in deep financial trouble.

The Toronto-based company--known as NAFA--is the world's oldest fur auction house with roots that go all the way back to the Hudson's Bay Company.

In a letter to trappers earlier this fall, the CEO of North American Fur Auctions said that some of their banking partners have decided to get out of the fur business. Efforts to find new lenders fell through.

But trappers will still be able to get paid for their fur through the Fur Harvesters auction house in North Bay.

Mark Downey is CEO at Fur Harvesters. He says NAFA's troubles had nothing to do with the wild fur business.

Downey says it was because of the ranch mink industry.

"In 2013 mink were averaging $100 apiece whereas now, ranch mink are down to $20, $30, and it costs $45 to raise them," Downey said, addingthat 80 to 90 per cent of NAFA's gross sales came from ranch mink.

Downey says that in North Bay, the reverse is true for Fur Harvesters.

"Our hand is on the pulse of the wild fur industry," said Downey. "That's what we've made our living on and that's what we're going to continue doing."

Downey says that Fur Harvesters will now be the only auction house in North America that sells wild fur exclusively.

According to Downey, trappers need not worry that Fur Harvesters won't be able to handle the added volume.

"The volume over the last 15 years hasn't been nearly what it was during the big fur boom of 1979-80 and the late 80s," he said.

Downey recalled that it wasn't uncommon for Fur Harvesters to handle 100,000 beaver pelts at a single auction.

Downey said that trappers can still sell to private fur buyers but he added that "everybody, whether they have a bag of fur or a truckload of fur, everybody gets treated the same here in North Bay."