Week at a Glance
- African markets unchanged
- Argentina’s Senasa urges tanneries to normalize removal of hides
- Australian hide sellers see customers withdraw
- Brazil’s prices steady
- European Cows: Prices down, €0.50 in Northern Germany
- European Bull Market: Automotive stop causes a drop
- Japan reports monthly hide import statistics
- Pakistani leather exports higher in first 8 months
- Spain’s footwear, leather industry down 6.8% in January
- US Heavy Texas Steers weakly steady
Click on a specific headline to go directly to a particular story.
Click here to view all the charts for international selections.
Africa
South African lamb markets firm
*Prices quoted in USD/dz
| Category | This Week | Last Week 03/20/2020 |
| Lamb I-III top quality | 250-260 | 250-260 |
| Lamb IV B | 210-215 | 210-215 |
| Lamb HS1 | 170-180 | 170-180 |
| Lamb HS2 | 135-140 | 135-140 |
| Lamb TRA | 105 | 105 |
| Lamb TRB | 65 | 65 |
Central African lamb, sheep markets remain unchanged
*Prices quoted in USD/dz (crust)
| Category | This Week | Last Week 03/20/2020 |
| Goat skins (Mali, Iv. Coast) | 70 | 70 |
| Lighter goat skins (Mali, Iv. Coast) | 60 | 60 |
Northern African calves hold stable
*Prices quoted in USD/dozen (pickled), 5 sqf
| This Week | Last Week | |
| TR (I-III) | 50 | 50 |
| TR (IV-VII) | 25 | 25 |
Made in Africa Leather MOU signed
African Leather and Leather Products Institute and African
At the African Union Headquarters, on the sidelines of the 33rd Ordinary Assembly of African Union Heads of State and Government, the CEO and Chairman of the AeTrade Group, Mulualem Syoum and the Executive Director of the African Leather and Leather Products Institute (ALLPI), Prof. Mwinyikione Mwinyihija, signed an MoU in the presence of the COMESA Secretary General and the AU Commissioner for Trade and Industry during a press conference.
The CEO and Chairman of the AeTrade Group welcomed the opportunity to work with the regional bodies established by COMESA to enable the implementation of the Boosting Intra-African Trade, SME development and Industrialisation efforts.
AeTrade Group already signed a memorandum of understanding with the African Standards Organisation, which will be a critical partner in this collaborative framework. The African leather sector will benefit tremendously as the two organizations join forces to harness their technical capacities to boost the competitiveness of the sector. Through digital capacity building and access to markets across the continent and globally, the number of SMEs and jobs created will increase significantly.
Leather and Leather products are among the most widely traded agro-based commodities in the world. The sector has the longest value chain and is fully integrated into millions of African households. In Sub-sharan Africa, in the leather sector, SMEs represent more than 95% of enterprises and the sector is male dominated with gender balance of Male 66.7% to 86.6% and Females 13.4%. to 33.3% at different stages of the value chain.
Africa Continent’s Hides & Skins, Leather and Leather Products import and Export values in 2018, were, respectively, US$5.45 and US$2.55 billion, of which the share of intra traded value is only 9.44%. The estimated potential of the sector is up to US$40 billion. The AeTrade Group keenly wishes to support ALLPI’s strategic plan to boost intra-African trade and enhance Africa’s share in the global market. Therefore, the Ae Trade Group and ALLPI will jointly develop relevant training materials for the digital platform that is customized for this sector. ALLPI being the first mover, will promote awareness to all SMEs about the benefits of trading on the Ae Trade platform, which will be disseminated through the success stories that will be published through different, digital media. Other sectors such as Agriculture, Distribution and Logistics, Finance, Tourism, and all sectors will be included based on the value chain approach.
Leather industry holds promise in Niger
Zouha Mohammed is studying the intricate skill of stitching leather, which can take months to learn. But with that expertise at hand, she now has the opportunity to generate income from her creations, items like purses, bags and keychains.
Mohammed took a course in the craft in Niamey, Niger, and can make as much as 35,000 cfa (US$58) if she sells one of her bags. She said she hopes this extra cash can translate into greater financial independence.
“Many women are active in the leather and hide processing sector in Niger. This economic participation allows them to increase their income and provide for their families,” said Abdou Adamou of the Enhanced Integrated Framework (EIF) in Niger.
“The leather and hides sector plays an essential role in Niger’s economic and social development. The country has an important capacity for processing hides in rural areas and a significant production potential for small ruminants such as goats.
Mohammed was part of a group of more than 125 women trained in leatherwork, and over 600 people involved in the livestock side were trained in the proper production of hides and skins and eco-friendly tanning techniques. In addition, tanneries and women’s organizations were provided with needed equipment like sewing machines, wheelbarrows, desks, boots and more.
Approximately 80% of the country’s total production is exported, and exports go mainly to Nigeria. In 2015, animal and animal-based products made up approximately 3% of GDP.
Argentina
In Argentina, meatpackers are working full speed as the food industry does not stop. The problem is that at the end of last week tanneries were not allowed to work and there was no home for the hides. Now, tanneries are working with minimal staff to receive these hides, but there are still a lot of problems. Even if the hides are free, there is no capacity to salt so many hides. The country’s hide and leather industry is going week by week because the demand in any particular sector is unclear. One source noted that “We only hear about cancelations and reductions.”
Buenos Aires
| Steers | $0.60 |
| Cows | $0.10 |
| Heifers | $0.80 |
Senasa urges tanneries to normalize removal of hides
Carlos Paz, head of the National Service for Agrifood Health and Quality (Senasa), has sent a note to tanneries requesting that they resume the normal flow of hide removal, or “the corresponding measures will be taken to guarantee it.”
The Argentine Chamber of Slaughterers and Suppliers had warned that the tanneries were not complying with the withdrawal of the by-product, which could cause “not only increases in production costs, but may in the short term cause paralysis of the industry, with the consequent shortages, speculation and price increases.”
Along these lines, the Argentine Chamber of the Refrigeration Industry (CADIF) reported that the closing of last week found them “in an operational emergency and on the verge of paralysis, due to the lack of destinations for the hides from slaughter.” If this problem continues, the organization warned that “the regular supply of meat to the population would be prevented.”
Senasa noted that “not collecting or removing the hides resulting from the process of slaughter is causing severe inconvenience in the processes of such establishments” and insisted that “we are all making a great effort without regard to the costs that this emergency means.”
Australia
Australian markets hold firm
AUSTRALIA Wet blue, ox, USD/piece
| Grade A | This Week | Last Week |
| 6-14 kg | 18 | 18 |
| 14-18 kg | 28 | 28 |
| 18-23 kg | 39 | 39 |
| 23-27 kg | 47 | 47 |
| 27-31 kg | 55 | 55 |
| 31kg and up | NA | NA |
| Grade B | This Week | Last Week |
| 14-18 kg | 22 | 22 |
| 18-23 kg | 30 | 30 |
| 23-27 kg | 38 | 38 |
| 27-31 kg | 48 | 48 |
| 31kg and up | NA | NA |
| Grade C | This Week | Last Week |
| 14 kg | NA | NA |
| 14 -18 kg | NA | NA |
| 18-23 kg | 20 | 20 |
| 23-27 kg | 28 | 28 |
| 27-31 kg | 36 | 36 |
| 31 kg and up | 45 | 45 |
Slaughter jumped last week
Beef Central reports that Easter states cattle slaughter jumped a surprising 17 percent last week, despite continuing downward pressure on finished cattle prices. The five-state weekly total to Friday was up to 140,944 head, up about 20,000 head more than the week before, with all states but South Australia contributing.
Trade talk this week suggests that the US port system is beginning to face similar challenges as China did earlier in the year, with waterfront disruptions caused by lack of labor and workplace restrictions causing container holdups in some ports.
Australian hide sellers see customers withdraw
Beef Central
International buyers and traders have more or less withdrawn from making offers on Australian hides, according to Beef Central.
With Italy having stopped leather goods manufacturing and tannery operations, that takes a major buyer out of the market. The other big customer — China — is also still affected.
“The good news was that the world was starting to embrace leather again, for fashion, furniture and vehicle seats. But this epidemic has brought it all to a screaming halt – so much so that I’m concerned now that the entire trade in hides out of Australia could be held up, for maybe a month or two,” said Northern Cooperative Meat Co chief executive Simon Stahl said.
That left only two options: stockpiling, or disposal as landfill.
Hides industry spokesman Victor Topper, president of the Australian Hides, Skin and Leather Exporters Association, said hides in Australia this week were basically ‘unsaleable.’
Benelux
Benelux bull markets decline
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Benelux | 30.0 – 39.0 kgs | 1.00 | 1.10 |
| Benelux | 40.0 – 49.0 kgs | 1.00-1.05 | 1.15-1.20 |
Brazil
Last week in Brazil, the real closed at R$5.1270 against the US dollar compared to R$5.0241 in the previous period. The dollar rates are still helping the leather industry to recover some space in the global leather market despite the lower bids that are being offered. The average price of fresh hides did not change and closed at R$0.81 per kilo. Raw material is under pressure and the Brazilian leather sector is evaluating the better way to keep going compared with the hides from other countries. TR1 remained steady at $0.65
Canada
Canada’s federally inspected slaughter for the week ending March 21st, 2020 was 69,859, up incrementally from the previous week’s 61,819. For the same week in 2019, slaughter was 61,631. Year-to-date Canadian cattle slaughter is 698,331 compared to 2019 when it was 688,875, an increase of 1.4%.
Finland
Finnish cow markets drop 10 cents
| Cows | This Week | Last Week 03/20/2020 |
| Finland* | 0.70 | 0.80 |
Finnish bull markets stable
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Finland* | 34 kg and up | 1.25-1.30 | 1.25-1.30 |
France
Veal Skins: Relative hold
There is also a price drop in calf, but not at the pace of the cows or the bulls and this for reasons that are quite clear. First of all, there is less availability and the slaughterhouse at this stage prefers to process dairy cows, also because the demand for milk is falling sharply, as the demand for catering for fresh cheeses has ceased to exist. And then, when the market starts again it will need a lot of hides because strong demand is expected. Tanneries, therefore, continue to buy and prices, from The Netherlands to France, are down slightly.
*All prices quoted in Euros/kg. delivered North Italian tannery, payment 30 days
| Weight | This Week | Last Week 03/20/2020 |
| 13+ kgs (Luxury) | 6.10-6.40 | 6.20-6.50 |
| 13+ kgs (Black and White) | 4.80-5.30 | 5.00-5.50 |
| 8-12kgs (Luxury) | 4.60-5.20 | 4.80-5.30 |
| 8-12kgs (Black and White) | 4.40-4.70 | 4.50-4.80 |
French cow markets see overall decline
| Cows | This Week | Last Week 03/20/2020 |
| French Bretagne 32 kg and up | 1.05-1.10 | 1.15-1.20 |
| French Bretagne 32 kg and under | 1.00-1.05 | 1.10-1.15 |
| Central French 32 kg and up | 0.80-0.85 | 0.90-0.95 |
| Central French under 32kg | 0.75 | 0.85 |
French bull markets also see overall decline
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| French – Central
French – Bretagne |
37 kilos and down
37 kilos and down |
1.00-1.05
1.20-1.25 |
1.15-1.20
1.35-1.40 |
| French – Central
French – Bretagne |
37 kilos and up
37 kilos and up |
1.10-1.15
1.30-1.35 |
1.20-1.25
1.45-1.50 |
Germany
European Cows: Prices down, €0.50 in Northern Germany
European cows weaken due to the absence of requests. Everything is stopped in the field of footwear and leather goods. Activities are continuing by Central European tanneries, which however, have difficulties in dealing with retailers at the moment. The cancellation of Salone del Mobile will also affect activity in the second half of the year, therefore the prospects are negative. The prices of German origins have seen a drop of 10 to 15 cents, and consequently, 25+ northern German cows drop to €0.50, northern Italian to €0.45 and southern German selections lost up to 15 cents.
| Cows | This Week | Last Week 03/20/2020 |
| N. German 25 kg and up | 0.50 | 0.55-0.57 |
| N. German 15-24 kg | 0.55 | 0.60 |
| S. German 40 kg and up | 0.80-0.85 | 1.00-1.05 |
| S. German 30-39 kilos | 0.75 | 0.90 |
German heifer markets weaken
| Heifers | This Week | Last Week 03/20/2020 |
| N. German 25 kg and up | 0.85 | 0.90 |
| N. German 15-24 kg | 1.15 | 1.20 |
| S. German 40 kg and up | 1.10 | 1.15-1.18 |
| S. German 30-39 kilos | 1.05 | 1.10-1.13 |
| S. German 24-30 kilos | 1.15 | 1.20-1.22 |
| S. German 15-24 kilos | 1.25-1.30 | 1.30-1.35 |
European Bull Market: Automotive stop causes a drop
The week has been very confusing for bulls. Most of the European car manufacturers have stopped production: It has stopped in France, Spain and Italy. It continues in Germany where, however, Volkswagen has blocked everything and is ready to convert production for making ventilators. Leather prices started to drop on Wednesday, when there was a 20- to 30-cent drop for Southern German bulls, which were not substantially more quotable on Friday: There was talk of offers at half price for the US market. In general, we can say the last week is not very indicative for a real price trend.
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| N. German | 30.0 – 39.0 kgs | 0.80-0.95 | 1.00-1.05 |
| N. German | 40.0 – 49.0 kgs | 0.90-0.95 | 1.00-1.05 |
| S. German | 40.0 – 49.0 kgs | 1.15-1.20 | 1.35-1.40 |
| S. German | 50.0 kilos and up | 1.10-1.15 | 1.35-1.40 |
Europe
Female Hides Report
Scroll cursor over the chart to view a year to year comparison.
European Bull Market
Scroll cursor over the chart to view a year to year comparison.
Lamb and Sheep Market
Scroll cursor over the chart to view a year to year comparison.
Greece
Greek lamb, sheep markets continue to hold firm
*Prices quoted in USD/dz (pickled)
| Category | This Week | Last Week 03/20/2020 |
| Lamb skins (70/20/10) | 65 | 65 |
| Lamb skins (C2) | 35 | 35 |
India
Indian buffalo markets remain unchanged
*Prices quoted in USD/sf (crust)
| Category | This Week | Last Week 03/20/2020 |
| Crust, 1.2-1.5 mm | 0.50-0.55 | 0.50-0.55 |
| Crust, 0.9-1.1 mm | 0.40-0.45 | 0.40-0.45 |
Iran
Iran mutton/goat markets hold stable
*Prices quoted in USD/dz (pickled)
| Category | This Week | Last Week 03/20/2020 |
| Muttonskins (AB) | 90-100 | 90-100 |
| Muttonskins (2B) | 60-65 | 60-65 |
| Muttonskins (super) | 40-50 | 40-50 |
| Goatskins medium | 25-30 | 25-30 |
Italy
Italian veal skin markets remain steady
| Weight | This Week | Last Week 03/20/2020 |
| 18kg and up | 3.00-3.30 | 3.00-3.30 |
| 18kg and under | 2.70-3.00 | 2.70-3.00 |
Italian cow markets decline
| Cows | This Week | Last Week 03/20/2020 |
| Italian | 0.45 | 0.50-0.55 |
Italian bull markets also decline
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Italy | 40 kg and up | 0.85-0.90 | 0.95-1.00 |
Japan
Japan reports hide imports, exports
Netherlands
Dutch veal skin markets continue to fall
*All prices quoted in Euros/kg. delivered North Italian tannery, payment 30 days
| Weight | This Week | Last Week 03/20/2020 |
| 14.5 kgs | 3.30-3.80 | 3.50-4.00 |
| 16.5 kgs | 3.70-4.30 | 3.80-4.50 |
Dutch Cow markets drop
| Cows | This Week | Last Week 03/20/2020 |
| Dutch | 0.50-0.55 | 0.55-0.60 |
New Zealand
New Zealand markets flat
NEW ZEALAND Wet blue ox, selection 80%-20%, USD/piece
| This Week | Last Week | |
| 20-24 kg | 52-53 | 52-53 |
| 24-27 kg | 62 | 62 |
| 27+ kg | 73-74 | 73-74 |
NEW ZEALAND Wet blue heifers, selection 80%-20%, USD/piece
| This Week | Last Week | |
| 14-18 kg | 42 | 42 |
| 18-23 kg | 52 | 52 |
NEW ZEALAND Wet blue cows, selection 80%-20%, USD/piece
| This Week | Last Week | |
| 14-18 kg | 30 | 30 |
| 18-23 kg | 36 | 36 |
New Zealand Lamb markets hold firm
*Prices quoted in USD/dz (pickled)
| Category | This Week | Last Week 03/20/2020 |
| Lamb skins (standard) | 70 | 70 |
| Lamb skins (C grade) | 15-20 | 15-20 |
Norway
Norwegian cows, bulls remain flat
| Cows | This Week | Last Week 03/20/2020 |
| Norway 17+ (av 24 kg)–* | 1.65-1.70 | 1.65-1.70 |
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Norway* | 34 kg and up | 1.75-1.80 | 1.75-1.80 |
Nigeria
Nigerian Lamb markets hold steady
*Prices quoted in EUR/sf, crust
| Category | This Week | Last Week 03/20/2020 |
| Cross lamb A | 2.40 | 2.40 |
| B | 1.90 | 1.90 |
| C | 1.40 | 1.40 |
| L1 | 0.90-1.00 | 0.90-1.00 |
| L2 | 0.60-0.70 | 0.60-0.70 |
Nigerian goat markets remain flat
*Prices quoted in EUR/sf, crust
| Category | This Week | Last Week 03/20/2020 |
| ABC | 1.25 | 1.25 |
| D | 0.95 | 0.95 |
| E | 0.70 | 0.70 |
| F | 0.60 | 0.60 |
| L | 0.50 | 0.50 |
Pakistan
Pakistani buffalo markets remain unchanged
*Prices quoted in USD/sf (crust)
| Category | This Week | Last Week 03/20/2020 |
| Crust, 1.3-1.5 mm | 0.55 | 0.55 |
| Crust, 0.9-1.1 mm | 0.50 | 0.50 |
Pakistani leather exports higher in first 8 months
Lefaso
From July 2019 to February 2020, exports of Pakistani leather goods increased by 11.17% over the same period last year.
According to the Associated Press, Pakistan, leather exports in the first eight months of the current fiscal year reached US$361,921 million compared to US$325,543 million.
Pakistani Statistical Office data showed that leather apparel exports reached US$198,965 million, up 13.35% compared to US$175,536 million in the same period last year.
Leather glove exports reached US $155,289 million, up from US$142,573 million, and exports of other leather goods increased to US$7,667 million from US$7,434 million in the same period last year.
Poland
Polish cows weaken
| Cows | This Week | Last Week 03/20/2020 |
| Poland 26/27 kg* | 0.65-0.70 | 0.70-0.75 |
Polish bulls drop
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Poland* | 40 kg and up | 1.15-1.20 | 1.25-1.30 |
Spain
Lamb and Sheep Market: Unchanged by force
The management method of sheepskin tanneries in Europe is such that the problems of the cattle sector do not arise immediately. This is primarily because tanneries do not operate from fresh hides. Consequently, there has not yet been an impact on the sales prices of raw material. Activities have stopped, but expectations for the time of reopening do not appear particularly negative. It’s just a matter of time.
*Prices are ranged to reflect the different regions in Spain, from lower end to top end quality.
**Prices quoted basis fob origin on euros per piece basis (5.5-7ft range, 6.5ft avg.)
| Category | This Week | Last Week 03/20/2020 |
| Entre Fino doubleface | 12.00 | 12.00 |
| Entre Fino nappa | 11.50 | 11.50 |
| Merino doubleface | 12.50-13.00 | 12.50-13.00 |
| Merino 80/20 1st/2nds | 12.25 | 12.25 |
| Merino 2nds | 8.00 | 8.00 |
| Lachaune Lechal 90/10 % 1st/2nd | 7.00 | 7.00 |
| Lechal aprox 40% P+SP balance rasato | ||
| 100% 1st | 5.00 | 5.00 |
| 90/10 % 1st/2nds | 3.50 | 3.50 |
| Tigrados original | 2.00 | 2.00 |
Spanish cow market down 5 cents
| Cows | This Week | Last Week 03/20/2020 |
| Spain* | 0.60 | 0.65 |
Spanish bull markets drop
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Spain | 40 kg and up | 1.00-1.05 | 1.10-1.15 |
Spain’s trade balance of leather over the last decade
The Spanish tanning sector sells more than half of its annual leather production abroad. Last year alone, national exports of semi-tanned and tanned leather generated a total of more than €578 million. Imports of hides and leather in 2019 amounted to €461.5 million. If we analyze the evolution of both exports and imports of hides and leather in our country during the last decade, we find that throughout these 10 years, Spain has always sold more raw hides than it bought abroad, contrary to what has happened with semi-tanned hides, whose imports have always been much higher than exports. As for tanned leather, it is noted that only since 2016 sales of this type of leather exceed purchases.
By sub-sector, exports and imports of raw hides between 2010 and 2019 have evolved evenly. Although purchases of this type of leather abroad have remained unchanged for the last decade, sales do show a clear downward trend since 2013. Spanish exports of raw leather in 2019, compared to 2013, show a drop of 54.6 percent less.
Regarding foreign trade in semi-tanned hides, we found that both exports and imports of this type of hides reached their lowest values of the entire decade last year, even more than in 2012, a year of marked falls for this sub-sector of skins.
Finally, in relation to the international trade in tanned leather, it is worth highlighting how exports of this type of leather have remained almost unchanged, at around €375 million. On the other hand, imports, after reaching a peak in 2015, has chained in recent years a series of declines that have meant that it has lost, in the last four years, 39.4 percent of its value.
Spain’s footwear, leather industry down 6.8% in January
The income of the textile industry is again down. The Business Turnover Index (ICN) for the sector ended January with a year-on-year drop of 5.7%, according to data from the National Statistics Institute (INE). In December, the decrease was 4%.
In the case of clothing, the sector changed its sign in January, with an increase of 12.8%, leaving behind the setbacks of previous months. For its part, the leather and footwear industry closed the first month of the year with a decrease in its turnover of 6.8%.
Sweden
Swedish cows see decline
| Cows | This Week | Last Week 03/20/2020 |
| Sweden* | 1.15-1.20 | 1.20-1.25 |
Swedish bulls stable
| Bulls | Avg. Green Wt. | This Week | Last Week 03/20/2020 |
| Sweden* | 34 kg and up | 1.55-1.60 | 1.55-1.60 |
United Kingdom
UK/Irish Ox/Heifers: Down 5-10 cents
Britain eventually opted for a lockdown, but it currently applies to schools, public places and service activities, while non-food production continues. However, the abundance of slaughter and the general context did not protect British hides which lost on average 5 to 10 cents in pounds and, as far as Ireland is concerned, in euros. The price for the British 36+ is £0.75-0.80/kg and unfortunately, the prospects are not improving.
*UK prices in GBP, Irish Prices in Euros, delivered North Italian tannery, payment terms 30 days
| This Week | Last Week 03/20/2020 | |||
| OX/HFRS | UK | Ireland | UK | Ireland |
| 36.00 and up | 0.75-0.80 | 0.80-0.85 | 0.83-0.88 | 0.90-0.95 |
| 31.00 – 35.50 | 0.85-0.90 | 0.85-0.90 | 0.90-0.95 | 0.95-1.00 |
| 26.00 – 30.50 | 0.95-1.00 | 0.95-1.00 | 1.00-1.05 | 1.00-1.05 |
| 25.50 and under | 1.05-1.10 | 1.00-1.10 | 1.10-1.15 | 1.10-1.15 |
United Kingdom Lamb/Sheep markets hold steady
*Prices quoted in GBP/pce.
| Category | This Week | Last Week 03/20/2020 |
| Sheep skins | No Value | No Value |
| Hoggets | 0.00-0.50 | 0.00-0.50 |
| New season lambs | NA | NA |
United States
Heavy Texas Steers weakly steady
Despite record low prices, trading in Texas was scant during the week. Sales of 62/64 lb. averages were reported at $15.00 and $16.00. Looking at the price chart, today’s sales level is half of what it was at this time last year and down 25 percent from the 2019 low point. Heavier 74/76 lbs. sold for $20.00.
LHCA warns that hide waste will continue in 2020, LHCA warns
The Leather and Hide Council of America (LHCA) has warned that the phenomenon of cattle hides going to waste rather than being made into leather will continue in 2020.
In its outlook for the year, LHCA said: “The leather industry has experienced an extremely tough market for the last several years, which will likely continue in 2020. Plastic synthetic alternatives that look like leather but are not leather have taken significant market share away from the material in consumer product areas such as footwear and automobile upholstery. The situation is so dire that some lower-quality hides and skins are being composted and destroyed rather than processed into leather, a trend that will continue in 2020.”
Hide supplies are likely to stay high in the US. LHCA said an expansion of the US cattle herd, which began in 2014, appears to have leveled off. However, it said it expects slaughter levels to slow only slightly in the first half of 2020.
