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Posted by Don Ohsman, Publisher
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Saturday, October 31, 2009
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| Title: Why go to the game? |
After watching a good portion of the World Series the other night, I can't help but wonder why tens of thousands of people want to pay very large sums of money to watch it in person.
The same can be said for football games this fall. Those that are not in new domed stadiums are vulnerable to extreme cold and in some cases, rain snow etc.
As a kid, I vividly remember walking into Yankee Stadium with awe. The bright green grass and the monuments in center field in the "House that Ruth Built" was one of the thrills of my youth. The same could be said for Ebbets field and even once the Polo Grounds, but that was then. Those were the "old days." Me and my Dad. It didn't get any better than that. When I was older, going with a friend or two was also a big kick. I remember before TV when we all gathered around the radio to listen to "the game."
Then came Televivison, and eventually, the art of coverage evolved into what it is today. The watch a game on TV today is nothing short of amazing to someone who remembers how it was in the early days.
Now, on a big screen at home, or if you like company, in a bar or restaurant, you can see players better than if you were standing in front of them. You can see the ball better than the referee's or umpires and you can see it with instant reply from several angles. If you could read lips, you would "hear" everything they have to say.
There's not any traffic jams. No budget busting tickets to buy. No outrageous prices to pay for less than good food, no traffic and all of the other costs that are part of going to the game.
So why do people vie for tickets to the "big game" and plan a week end or days around the event. Why do so many people buy season tickets and brave the elements in many cases?
Personally I think their nuts! However, when I ask friends who do this, including my son who thrills at the adventure and now takes his own kids, why, there is no hesitation to answer.
It's because they just love being there. They thrill being part of the action. The tail gating, and or cheering for their team. For interacting with those around them. For the atmosphere, of , in their own way, participating in the event.
Great. Good for them. Who would want to watch or even play in a game in an empty stadium or TV studio.
But for me, I much prefer to hear all of the broadcasters expert commentary that enlightens the ins and outs of the coaches/managers strategy. I love seeing in small detail what's happening on the field.
My chair at home is far more comfortable. There's no line to get into the restroom, and food is just a few steps away. I can easily confer with my watching companion, and if the game gets a little slow or dull, I can pick up something to read, or do a small chore during the commercials. I can even record it and watch it later in a fractiion of the time as seeing it live.
Thank goodness we all don't like the same things. It's good that "there's different strokes for different folks." Kudo's to those who brave going to the game. I like to see them in the stands having fun If they could look back through the camera, they would see me enjoying the game at home just a much.
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Friday, October 30, 2009
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| Title: Is the recession over? |
Better economic news may not last
I hate to be a pessimist. After all, doesn't one have to be an optimist to get out of bed in the morning?
Yesterday's news showed a sharp reversal in GDP as the government announced a 3.5% third quarter expansion.
Some headlines said that "the great recession is over" in comparison to the depression of the 1930's. Compared to thhat, what we've just experienced is nothing. Those were truly hard times for a huge percentage of the population, far more than the last year has been.
Regardless, government stimulus did a great deal to create this 3.5% turn around. But how long will it last and what will the next quarter show?
Companies continued to dump inventory in the 3rd quarter and the cash for clunkers helped to "artificially" stimulate new car sales in that they were borrowed from future business.
Home sales, as have been reported in each weeks HIDENET THIS WEEK IN LEATHER have also been stimulated by the governments, already abused, $8,000 tax credit for first time home buyers.
What concerns me is will the momentum created last in to 2010 and is the recession truly over?
Many small business are still having trouble getting loans as are home buyers and commercial property is suffering badly. Consumer debt loads are still at or near record high's
Then of course is Government borrowing. At present, government debt combined with personal debt a record 373% of GDP
While this helps growth temporarily, sooner or later it has to be paid down. Higher taxes are not about to stimulate the economy. Paying off debt by spending less will not do any good either.
My advice is don't go out and buy that new whatever yet, and don't finish those expansion plans if you're a business. I think that it's still time to be very cautious.
The only proof that I'm wrong is the stock market. It typically is a bellwether of economic conditions six months ahead. Could it be poised for a sell off?
Since I can't figure how the hide market that far ahead, I surely don't know what stocks will do. However, haven't we all heard the expression: "it's better to ge safe than sorry?"
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Posted by Don Ohsman, Publisher
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Thursday, October 29, 2009
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| Title: Average hide costs |
As subscribers to our Daily Hidenet Market report can see, steer prices have moved sharply higher this week. In the past four weeks, prices have risen 10% and higher. They are poised to gain more in the coming week.
Meanwhile tanners keep saying leather orders are relatively slow and major brands are not indicating they are about to pay anymore for shoe upper leather.
Are tanners looking at reports of a better economy ahead? Are they buying in anticipation of better leather prices?
I don't think so. A good number try to generally buy on a consistent basis to avoid market swings. This prevents buyers from having to reach for hides and chase a market.
Leather prices are set by the big brands to larger tanners for six months at a time. Once the leather price is set, everyone has to live by it.
This is not only applicable to tanners and shoe makers, but it's also the basis of how the brands price their footwear to the major retailers. Upholstery is typically done in a similar manner.
So what's it mean in the current steer market? It means that because steer supply, at least in North America is tight due to well forward producers. Prices will climb - until - over-all average costs reach a point that is negative to the price of the corresponding leather.
We would think the market can't be too far away from that now
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Tuesday, October 27, 2009
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| Title: Not asking enough is Laziness |
For many years, I had the pleasure of working with Joe Oilshiver. Joe is now retired, but practiced his craft of buying and selling hides and splits for over 50 years.
Whenever we discussed what to price a particular offering, he would always say
"Not asking enough is laziness!"
In other words, anyone can sell something under the market. However, it takes a good salesman, using his skills in one form or another to merchandise/market/sell hides/leather or anything else above the market.
There's one more old adage taught to me years ago. That one is:
"Sometime the bears win and sometimes the bulls, but the hogs always get stuck!"
This thought came to me in looking at most of the asking prices seen today. Nobody appears to be lazy!
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Monday, October 26, 2009
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| Title: PETA dangerous-not omnipotent |
A friend sent me an article today from the New York Law Journal. The story said that "the First Amendment does not insulate animal rights activists from criminal liability."
The case in question was brought before the U.S. Court of Appeals in United States vs Fullmer. The panel of 3 judges refused to strike down the Animal Enterprise Protection Act (AEPA).
They rejected arguments by six activists of targeting a research corporation that uses animals to perform safety testing for companies seeking to bring products to market. Six members of Stop Huntingdon Animal Cruelty were given prison terms.
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Monday, October 26, 2009
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| Title: Fogo De Chao-expensive and good! |
Over the week end, friends wanted to have dinner with us at Fogo De Chao. This is a Brazilian Steakhouse Chain with restaurants around the US and in Brazil as well.
The food is outstanding. They have a salad bar for about $20.00 with too many items to mention that is an excellent meal in itself.
The service is outstanding if perhaps too good. There's a server waiting to slice meat of off skewer on a perpetual basis. They're always walking around waiting to drop a delicious morsel on your plate. The rolls are terrific as well.
For $47.00 you get the salad bar and all the meat you can eat. This ranges from many different types of beef to pork, lamb and chicken. It is maybe the most tasty meat you'll ever eat.
Had an excellent glass of wine. $14.95 on their menu. Colome Malbec Estate from Argentina, 2007. Perfect with their meat. Even goes well with chocolate for dessert!
There is one caveat: If you can't control how much you eat, you will walk away so full you will be uncomfortable. Stuffed. Don't go on the scale the next morning!
Don's rating - A
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Friday, October 23, 2009
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| Title: Pay attention to PETA |
A relative handful of zealots can wreck havoc on an industry.
In my career I've personally seen what it did to the Fur industry both here and in Europe.
We've all read what they've done to the pharmaceutical industry with regard to using animals for drug testing
The fiasco in the Amazon in Brazil was a recent successful effort by this International group.
The article below shows what they have done in India.
So what can we as an industry do?
In my opinion, on an international level, ISHALTA should address this in the form of an active committee or some other such group. So should
ICT, The International Council of Tanners.
PETA also operates on the local level so each of our national associations should form active on going committee's to work to counter this organization that can only cause further harm to us all.
If you agree, then please contact your local industry association as well as international fair organizers such as APLF, Lineapelle, WSA, etc.
It affects us all, from slaughter house to leather retailer.
If you have further thoughts, make a comment on this blog that we can all discuss.
Let's not be caught napping.
Here's the article:
New Delhi: Wearing body suits splattered in red and masks of a cow and a horse, activists of an animal rights group painted a gory picture of animal slaughter to protest the international leather fair that begun in the capital on Friday.
Talking about the protest, Akraprava Bhar, one of the organisers of the protest, said their aim was to sensitise people about animal cruelty and to raise awareness that leather is dead skin.
"The three-day international leather fair started in Delhi today (Friday) and our aim is to raise awareness on how animals are treated before they are turned into leather shoes, bags and other products. We encourage shoppers to choose synthetic and natural-fibre materials instead of animal skin," Bhar told.
The protest was held in Pragati Maidan, the venue as the leather fair.
To drive their point home as vividly as they could, two activists of the People for Ethical Treatment of Animals (PETA) group dressed as a "skinned cow" and a "skinned horse" and slept in an open show box which had tags of well known leather products.
"The message was that animals are skinned and killed for leather products like shoes," Bhar said.
Besides the scene enacted, other activists stood shouting slogans and holding placards with messages like "Leather is evil" and "Leather is murder".
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Thursday, October 22, 2009
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| Title: Is anyone ever persuaded? |
While in the gym on the treadmill yesterday, I was watching the evening "news" shows on TV.
One channel had Fox news and the other CNN. One had O'Reilly and the other Keith Oberman.
The Fox show was very conservative/Republican and leaned to right. The Oberman broadcast leaned to the left.
I would think that for the most part, Republicans watch one and Democrats the other. Each their own man.
The point is, it's like preaching to the choir. Those with views opposite to these very popular shows only watch their side
So why are they so popular? Why do people want reinforcement or the spin on the news to what they already think/believe?
Why are we all deluged with political emails bashing one side or the other? Do these change minds?
There's an old adage that says with a friend or in business, "never discuss religion or politics." It's still true today as nobody ever changes the other persons mind on these two subjects. You just get the other guy riled up!
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Wednesday, October 21, 2009
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| Title: Where have all the hides gone? |
Complaints have been heard by a number of traders that offerings are few and far between this week.
Others say it's a growing trend. More consolidation. An extreme of this is now taking place in Brazil. At least the US is not there yet!
Meanwhile those that are not packers who have hides to offer each week are only concerned about how far forward they are and outstanding orders to ship. Processors with long term supply contracts are in a similar situation. Some processors who have to scramble for supplies have an ongoing battle.
Traders and tanners face the most difficulty. When there aren't offerings, and or sparse lists, buyers have to reach. This means having to tempt suppliers to sell
In my view, it all comes down to forward sold positions. Generally speaking, the number of hides generated each week do not drastically fluctuate, it's just a matter of how forward sales positions are - or are not. Thus the ebb and flow of any market.
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Monday, October 19, 2009
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| Title: A Great Weekend |
Had my two kids, their spouses and all of my 5 granddaughters visiting this week end. Couldn't help but posting it on my blog. Also, wanted to show off my Significant Other as well. I'm just a very proud Dad and grandfather.
Got pictures of your family you'd like to share?
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Posted by Don Ohsman, Publisher
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Sunday, October 18, 2009
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| Title: My Son & Daughter |
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Posted by Don Ohsman, Publisher
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Wednesday, October 14, 2009
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| Title: The beauty of blue? |
The growing trend of both packers and to a smaller degree processors to put more of their cured and fresh hide production into the wet blue is gradually making paradigm changes in the industry.
Large investments have and are still being made in the hopes of recouping the costs of bluing and accompanying "challenges" in the hopes of reaping added value to their raw hides.
But what about tanners who rely on this material to operate their tanneries and meet the demands of their customers? What about bluing costs, net of any freight savings, that are higher in North America than in Asia?
Are these consumers of hides being best served by having to buy their raw material in a state of tanning they have traditionally produced themselves?
On the other hand, with increasing pollution constraints around the world, it seems to me that hide producers are filling a growing need. Certainly they assessed the potential of selling blue to their customers before embarking on their ventures
Tanners along the Pacific Room are having to adjust their process to work with wet blue that have been formulated by their suppliers. Whatever the machinations required, it is apparently still cheaper then installing costly pollution equipment to comply with increasing environmental regulations.
Looking back, it's the same regulations that caused the demise of the bulk of the US and European tanning industries 10 and 20 years ago. This in part, was one of the reasons that caused the early players in wet blue like Tyson (then IBP) and processors like Twin City to establish their wet blue facilities
A speaker at an annual convention of hide industry members many years ago talked about "looking around the corner." If one looks ahead to see what trends he might be faced with in the future, he can try to adjust his business to meet these demands. Figuratively sticking one's head in the sand and hoping that nothing will change is a sure way to foster the demise of any business.
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Tuesday, October 13, 2009
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| Title: 10 lbs. in Chicago! |
Having just finished 5 days of stuffing myself with food in our Windy
City (named for its politicians and not it's climate) I can/cannot recommend
more than a few restaurants for those who will visit the city for next
year's meeting or in between.
1. Corner Bakery around the corner from the Hyatt i Michigan Ave.
Great for breakfast. Like Panera or Paradise Bakery. Good breakfast
compared to the $29 American Breakfast I had for room service. In
addition to bacon and eggs for $29.00, they charged of course tax, tip
$2.50 for delivery and about $2.00 for peanut butter!. Can you
imagine! A friend ate at the buffet in the hotel and said that was $29
also.
2. Claim Co. Northbrook - Chicago Suburb. New restaurant known for
hamburgers in Old Orchard shopping center. To be missed. For a little
more the burger are better at Cheese Cake by far. Cost around $10.00/
each with all the "fixins" you chose yourself. Don's rating: D+
3. Petterino's. Downtown. Adjacent to Goodman Theatre. A Letttuce
Entertianment restaurant where you can never go wrong. Went there
before watching Animal Crackers which is a very good funny show.
Hamburgers good as are all combinations of salad with meat, chicken
fish etc. About $15-$25 per person before any wine or drinks. Don's
rating: B
4. EJ's. This place is also by Old Orchard shopping center in
Northbrook area. SImilar to the wonderful Gene and Georgetti's
restaurant downtown. Fabulous garbage that's a meal in itself.
Terrific lamb chops (can't eat beef every day). Fabulous homemade
potato chips. Typical check without liquor/wine $40-$50.00. Don's
rating: A
5. The Bagel - In Old Orchard shopping center. Good Jewish
Delicatessen food. Mish Mosh soup not to be missed. Don's grade: B
6. Gibson's; A legend in Chicago. Original downtown on rush street.
Newer one in Rosemont 10 minutes from O'hare. Don't have the
hamburger for $10.50. Lousy. However the steaks are as good or better
than anyplace in the country. Not cheap. Again without booze figure on
$50 person and up. Don's rating: A
Also since it was cold and rainy all week end, saw two movies:
The Invention of lying. Friend of mine thought it was hilarious. I
thought it was stupid. 3 other people who went with me said "what's
all the fuss about? they have it a "eh!" I gave it less
The second picture was A Serious Man. Coen Brothers. Very good and
thought provoking and leaves you hanging. My rating a B
Don't hesistate to rate/recommend any restaurants/movies you've seen.
Many of us are traveling much of the time plus eating out in our
hometowns. Of course one man's meat is another man's poison but always
good to hear what others think. Hotel reviews encouraged as well.
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Monday, October 12, 2009
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| Title: AMI on Larry King tonight |
Following the New York Times' front-page scrutiny of the meat industry's practices in the production of ground beef, CNN's Larry King is scheduled to take up the issue tonight's in an hour-long broadcast on beef safety.
The related Web promo states: "One woman ended up paralyzed! Beef: Is it safe or scary? The debate over eating meat." (The NYT
story covered an E. coli outbreak in 2007 that sickened, among others,
22-year-old Stephanie Smith and paralyzed her from the waist down.)
Among the guests, according to reports, will be J. Patrick Boyle,
president and CEO of the American Meat Institute; Bill Marler, a
well-known food-borne illness litigator; and Elsa Murano, a former USDA
under secretary for food safety.
Boyle is a sharp well spoken representative of the meat industry. Recommend that anyone involved n the trade watch it. What have we got to buy and sell if nobody eats meat!!
Larry King Live airs 9 p.m. Eastern time on CNN.
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Saturday, October 10, 2009
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| Title: To Tie or Not To Tie. That is the question |
As has always been the case for me, it was great to see so many members of our trade in Chicago yesterday and today.
However, one issue that was not discussed was the matter of appropriate attire -or - to wear a tie or not to wear a tie!
It seemed that all of the men (there was a small percentage of women who always dress nicely) had jackets on, but about half did not have ties.
Is this ok? Not ok? Do we need a dress code? The invitation said "business attire" but what does that mean in our industry? Do any of us wear a tie to work? Of course not. Should we wear our "hide clothes" to Chicago? I hope not, The smell may get us kicked out of the hotel!
Does it create a better impression to have a tie on? Does it matter? All of the speakers at Friday's meeting had ties on, but hardly any of the audience did. Kudools to the Association president Chris Mullally, who ALWAYS wears a suit and tie on business and without doubt, winds the award as best dressed among us.
And then what about Shanghai and Hong Kong leather Fairs? Our customers don't wear ties? Most of us don't anymore, but some do. And what about a jacket?
Times have changed and society, regardless of where it is, has become more informal. Should we now say no ties at our annual convention? Does anybody care?
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Thursday, October 08, 2009
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| Title: Savings in Chicago |
A Taxi from O'Hare airport to the Swiss Hotel costs in the area of $30.00-$35.00.
However, there is a train/subway from O'Hare to downtown Chicago that costs about $2.00.
Greatly depending on traffic, the time is about the same.
If you take the train from O'Hare, you should get off at the stop called State & Randolph or State and Madison. It is then about a 3 block walk to the hotel. You can also find a cab fairly easily outside the downtown station and that should cost around $3.00 or so.
Obviously, you can go back to O'Hare this way. I use it whenever I fly in and have to go downtown Chicago.
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Tuesday, October 06, 2009
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| Title: New York Times warns of hamburger danger |
Some of you may have heard about or seen the front page article October 3rd New York times about a girl eating hamburger. She has been paralyzed as a result.
I am sorry to say that I have not seen any response to this bad publicity by anyone in the meat industry, the AMI or any other group. Tens of millions of hamburgers are consumed every day both here and abroad without any health problems this poor girl had. Tons of hamburger are produced in government inspected facilities.
As noted in a previous blog, thank goodness people are still willing to pay far more for beef than chicken or pork. In my opinion the meat industry ought to be countering this very bad publicity soon and extensively.
The article in part noted that: "Meat companies and grocers have been barred from selling ground beef tainted by the virulent strain of E. coli known as O157:H7 since 1994, after an outbreak at Jack in the Box restaurants left four children dead. Yet tens of thousands of people are still sickened annually by this pathogen, federal health officials estimate, with hamburger being the biggest culprit. Ground beef has been blamed for 16 outbreaks in the last three years alone."
I wonder how many people are "sickened" from eating chicken and fish (which hardly has any federal regulation)? How about vegetables? Imported produce? Vermin in dough? How many people die or are severely injured in automobiles every day?
If you would like a copy of the article, send an email to info@hidenet.com
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Sunday, October 04, 2009
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| Title: The Wonder of Beef vs Pork |
It continually surprises me how so many people buy beef compared to pork.
I have been inspired lately to grill meat over charcoal as to me and those I feed, it tastes better than a gas grill . While I sometimes buy steaks (the filets at Cosco for about $6.00-8.00/lb are great) I can buy a pork loin for less than $2.00/lb. Fortunately I can afford the steaks, but the pork is equally as good and others buying meat must have the same experience.
Add in the recession, high unemployment, and pork being "the other white meat" it's hard to imagine any increase in beef consumption for a long time to come. Population growth is also expected to slow due to the economy which retards immigration as well.
There is far more pork produced in the country than beef, but is beef, at this price differential, and aside from the cheaper cuts, a luxury item? I don't have a clue but since beef consumption supplies us all with a means to afford to eat it, we should consider ourselves lucky.
Cooking tip: A few years ago, Bruce Helvig at Tyson told me that all he uses on his grilled steaks is Montreal seasoning. Now I do too but add a little garlic power. It's all you need and the taste is on a par with the $50.00 steak restaurants. It's available at most super markets. The pork loin is also terrific with Montreal seasoning. Stop buy when you're in Scottsdale and I'll grill something for you!!
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Saturday, October 03, 2009
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| Title: First Of Many BLOG Posts By Don Ohsnman |
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Welcome to my blog.
This feature available to Hidenet subscribers will include personal opinions/observations about our industry, my travel experiences, including restaurants, and other observations about our life and times.
Readers are encouraged to submit their own comments on the same topics.
Here's my blog for today:
Why attend the USHSLA meeting in Chicago? The hotel is expensive as are the other costs including airfare. Typically, the speakers offer nothing new and are often not exactly riveting. Many attending members don't even sit through the meeting, ducking out for conversations with their colleagues or to take phone calls, and the event only lasts half a day.
The cocktail party is nice on the evening before, and it's a great place to meet and greet but the time is short, and many of those present are involved in traffic and services as opposed to those who buy and sell hides. Maybe the dinner will be a nice feature this year and I commend the board for trying to make the event more social.
However, the real reason that I plan to attend is "face time!" A chance to press the flesh with both long time and new friends. For time to have private meetings, settle differences and or claims. For others, it's an opportunity to plot schemes, exchange new idea's, and strategize future business. For others it's just an excuse to get in a round of golf with their compatriots and the legendary late night poker game, and/or some bonding bar time.
After attending these things for nearly 40 years, and being in Florida 30 years ago when we decided that the old National Hide Assn. was antiquated for modern times, it will be good to see what has become of us next week.
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