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December 3, 1996
(Forest Resources and Agrifoods)

 

The following statement was issued today by Beaton Tulk, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

Fur Strategy for Newfoundland and Labrador

I would like to inform the Honourable Members of the House of Assembly of the new five-year strategy for the fur industry of this province. Produced by the Newfoundland and Labrador Fur Breeders Association, this document is very timely for the industry, As the marketplace for fur has strengthened over the past few years.

Only five years ago, pelts were sold at an all time low of $40 each. However, over the past three years, fur prices have increased by 25 to 30 per cent, stabilizing at approximately $230 for blue fox and $110 for silver fox. While this might represent a peak in the industry, the overall outlook looks promising with major new markets in the Far East, Russia and other former communist Bloc countries, as well as a favourable climate in the fashion industry for furs and fur products.

This five-year strategy is designed to set the building blocks for a long-term, strong viable industry. It sets out ambitious goals to raise production from the current levels of approximately 3,000 to 4,000 silver fox to 60,000 silver and blue fox and 20,000 mink. This is not an unreasonable goal. The Newfoundland fur industry has a competitive advantage given the availability of raw feed materials, favourable climate, proven fur quality, a readily available labour supply and human resource talent. However, this is the first time that the markets and the Newfoundland and Labrador fur industry are on track together.

The strategy will make a meaningful contribution to the rural economy through increased fur production on new and established farms by focussing on development components such as diversification of species, feeding locally produced feeds, markets and marketing, research and development, education and training, and various financial support structures. Ultimately, this strategy will create 2,000 direct jobs for rural Newfoundland and Labrador.

A cooperative approach between industry and government is essential in order for this strategy to succeed. To this end, I have set up a Core Working Committee made up of representatives from the Newfoundland and Labrador Fur Breeders Association, the Department of Development and Rural Renewal, and my Department of Forest Resources and Agrifoods. This committee will use the 49 recommendations in the Fur Strategy document to prepare an implementation strategy.

Furthermore, the recent announcement by Ralph Gooddale, Minister of Agriculture and Agrifoods Canada, and myself relating to the signing of the Canada/Newfoundland Agricultural Safety Nets Initiatives forms an excellent basis to achieve some of the development goals outlined in the fur strategy. The agreement involves approximately $6 million dollars to be administered over a three-year period. This program, will be available to the fur sector as they undertake this industry development strategy.

I would like to commend the efforts of the Newfoundland and Labrador Fur Breeders Association and the existing fur farmers who have demonstrated an extraordinary commitment by remaining with the industry through hard times and coming out with a proactive strategy exactly at a time when it is needed. This commitment provides a solid base for this new strategy to succeed.

1996 12 03   4:30 p.m.

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