SAGA Sales-Skin Market Update of June 2022

The SAGA has just accomplished its new price exchange volume strategy on the pasted June Auction perfectly. The offered prices were around 15-25% lower than the April prices, which attracted the buyers particularly the speculators very much. In this auction, approximately 2.4 million minks, almost 50% of the total mink offered were sold successfully. Given the current weak market, this is a stunning achievement that will provide desperately needed cash for farmers and the entire mink supply chain.

Among those 2.4 million sales, male’ sold-out rate was 55%, female was around 45%, the velvet sold-out rate was 52%, and the classical was about 44%.    Thus, in terms of M/F and the length of the type of skins, the two rates sold were quite balanced. But if we focus on the full rate by color, we may find a bit different than the previous auction selling model. Within these 2.4 million skins, brown, mahogany, silver-blue full rate was very outstanding compared to other colors, almost 2/3 of the total skins sold in this auction were from the colors mentioned above. E.g., the brown male was almost 95% sold, Silver-blue was almost 60% sold out. Given the weak market situation of brown and silver-blue skins in China market, so it is clear that this is the result of prices-oriented sales. SAGA management has shown their reasonable market sense for different skins, and strong determination on what kind of skins should be sold-out first and can execute the strategy firmly.

China local farmers are catching up the quality, especially for the brown, white, and silver-blue in the past years. Given the cost advantage of Chinese farmers, obviously the SAGA current move is not only focusing the short-term goal of cash flow, but also try to guide the European farms to move in the upper market, the mutation skins producing quickly.