How much is that doggy in the coronavirus lockdown? If it's HK$56,000, think twice
THE ONE WITH THE WAGGLY TAIL
It is that time of year when Hongkongers can get back at us gweilos for making them suffer through months of tedious Christmas music in the shops, replacing it with - arguably equally painful - traditional Chinese tunes as we hunt for seasonal gifts.
Thankfully, giving pets as gifts never caught on in this part of the world. Rather, when visiting family and friends, confectionery, chocolates and Lai See are the norm - though I'm reliably informed that a puppy may pop up on Valentine's Day, which is the last day of this year's Lunar New Year weekend.
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In the UK, however, giving puppies as seasonal presents was once a major issue, until a national TV campaign sought to stem the tide of abandoned dogs overwhelming shelters once the holidays were over and owners realised that a pet for Christmas was a mistake. But now, there is a new problem, framed by the old slogan "a dog is for life, not just for [Christmas] lockdown".
The coronavirus lockdowns in the UK have had a major impact on the supply of pets and their prices. Bored of being stuck at home with only Netflix for company, many people have taken in a four-legged new best friend, and prices have escalated.
A positive outcome is that pups that were languishing in shelters have been snapped up, free of charge, and strays are now being shipped in from as far away as Spain, Turkey, Cyprus and Eastern Europe.
Stylish puppies from professional breeders typically doubled in price over the past year, according to pet websites, from something like £500-1,000 (US$691-1382) for an average pooch and up to £2,000 (US$2,765) or more each for particularly desirable breeds.
According to the British police, thieves have swapped vehicle and drug crime for the new business of nicking puppies, with reported dog thefts up 250 per cent last year - you can now have one stolen to order. There are also cases of dognapping, with ransom demands for the return of your beloved pooch.
Dogs with high monetary values, particularly working dogs, have become major targets. It's not all that surprising, as these highly intelligent and loving animals command many thousands of pounds: a record was set a few days ago when a 12-month-old border collie named Kim that can round up a flock of sheep was sold by its trainer for £27,000 (US$27,300).
Abandoned puppy Bella with the author. Photo: Neil Newman
HOW MUCH IS THAT DOGGY IN THE WINDOW?
My daughter has a miniature schnauzer which she rescued from a shelter a few years back, and was recently looking for another one to keep them both company. Having found one in a shelter last month, she was declined as the hour-and-a-half drive to fetch him would have broken British lockdown regulations. The shelter decided it would be far less risky to stay on the good side of the law and placed the dog with someone nearby.
My daughter then looked into buying one, only to discover that the prices have gone from around £800 before the lockdown to about £3,500 now - more than a 400 per cent jump.
Having come from a family that never paid up much for pets, this extreme price got me wondering: how much are people paying for a dog in Hong Kong these days?
Dogs at the Society for Abandoned Animals, Yuen Long. Photo: SCMP / Sam Tsang
I DO HOPE THAT DOGGY'S FOR SALE
People that follow my weekly waffle will know that I regularly have a bee in my bonnet about the price of things in Hong Kong compared to the UK - in particular supermarkets, whose canned tomatoes cost five times as much here as there. Rather than risk boring everyone with my complaints, I just shut up and refuse to buy them. That is my silent protest, and lasagne is now a luxury.
So, I wandered down to Causeway Bay and had a look in a few pet shops, where I had to do a double take at seeing a fresh, plump rabbit from the Netherlands offered at HK$5,200 (US$670). I then went to see what the going rate was for a dog or a cat. Sure enough, they were 50 per cent or so higher than the
UK, and you can easily part with HK$30,000 for either.
Specifically, a miniature schnauzer will set you back HK$56,000 (US$7,200), nearly double what you would pay in the UK, and more than double the price in Tokyo where you can get one for about HK$26,000. The shopkeeper told me they had gone up quite a bit recently, as people have stayed at home. All of the shop's animals were imported from Japan to boot, and she had a certificate to prove it.
It is a little beyond me why people would pay such a large sum of money for a puppy, no matter how cute, and in the process encourage a business that is open to all manner of exploitation. In my own experience, the breeders in Japan are no better or worse than any other, but there's no escaping that breeding is doggy business. The resellers are all too happy to tack on the "Japan-premium" that Hongkongers seem quite willing to pay.
And as for importing rabbits from the Netherlands, I find it hard to believe that they can't reproduce in the hills of Hong Kong, for example in Lantau.
A HK$5,200 imported bunny at a store in Causeway Bay. Photo: Neil Newman
LANTAU SHELTERS
There are more dogs (and cats) in Lantau than owners know what to do with, and judging by the rescue organisations around Hong Kong, it is not limited to that one island. There are a number of dog shelters that receive a near-constant supply of puppies.
One close to my shack, the Team for Animals In Lantau South (TAILS), has successfully homed over 200 unwanted pets or abandoned puppies and kittens in the two short years it has been operating, supported by volunteers and donations. They even found a home for Tiddles, a runaway turtle, and Zippy the flying squirrel.
This year alone, they have helped out 31 animals: 27 were taken in for rehoming, of which 11 are now homed and 16 are still waiting for new mummies and daddies.
A campaign to neuter pets in Hong Kong. Photo: Neil Newman
PET BUSINESS IS BIG BUSINESS
Aside from the price of a new pet, the cost of inoculations, general veterinary consultations, bedding, toys and the ongoing food bill, there are also special insurance policies for your new poochie to offset the vet's bills.
These bills can be quite considerable, as a U2-obsessed friend found out when his sweetest thing, a tiny Chihuahua called Bono, swallowed a small bouncy rubber ball. The vet found what he was looking for, and the ball and dog were reunited with their owner as he cursed bloody Sunday at the credit card transaction.
FREE TO A GOOD HOME
There are several ways for investors to get in on the global pet boom without having to splurge on a four-legged friend. And with the pet business projected to be worth US$270 billion in sales by 2025, it might be worth their while. Aside from investing directly in insurance companies or pet supplies manufacturers, there is a US-listed pet care ETF ticker, PAWZ:US, that has consistently turned in a good return during the lockdown. The ETF is biased towards the US where seven out of 10 homes have pets - more than have children.
Or, alternatively, invest in a new buddy for life, not just lockdown. But before laying out the cash for a pedigree dog or cat, please consider the animals that are waiting for a better life in Hong Kong's shelters, such as TAILS. They are just as loyal, loving, and free to a good home.
Neil Newman is a thematic portfolio strategist focused on pan-Asian equity markets
This article originally appeared on the South China Morning Post (SCMP).
Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
