Weak rouble knocks Swakara profit

Over 56,000 swakara pelts were sold over the weekend at the Kopenhagen Fur auction by Agra Provision on behalf of Namibian karakul producers. This constitutes 93% of the just over 60,000 skins sent for auction. The average price per skin of N$462 is an almost 18% drop in price from the highs achieved in September 2014.

Dagmar Honsbein, General Manager of Agra ProVision said the reason for the lower prices is that some of the typical Swakara buyers were not present in the auction room. Buyers from the Russian market were absent. “This was expected, because the rouble has decreased in value, making our goods more expensive for the Russian market,” said Honsbein. This has prompted Agra ProVision to search for other markets, as well as consider diversified Swakara pelt production processes. She continued, “We are going to market our products broader and in addition to this, we are considering a different approach in Swakara designs.”
International Fur Fashion sales were under pressure recently, therefore skin sales at recent fairs were not good which left the skin dealers with high stock reserves, which consist mostly of the more expensive goods. Swakara pelts are still mainly used for Russian fur fashion markets. The low value of the Russia Roebel and the uncertainty of the Russia geopolitical situation are the main reasons for unsold Swakara pelts.
The top Namibian producer at this auction, was Lovedale Farming from Helmeringhausen who sold 308 pelts at an average of N$752.86 (DKK 434.88). The top South African producer was Willie Knoesen of Ashkam who achieved an average price of R782.79 (DKK 452.17) for 304 pelts.