Beaver pelts from the Mississippi Beaver Cooperative fur sale held during March 1980 were examined to determine both the extent and origin of the damage responsible for downgrading. Of 1,914 pelts in the sample, 1,255 (65.6%) were significantly damaged. Damage inflicted by beaver accounted for 27.5% of the total. Skinning and fleshing cuts accounted for 31.5% of the damage. All other types plus those of unknown origin totaled 41.0%. Methods of dealing with the damage problem are discussed.