Week at a Glance
- Central African lamb/sheep markets see 5 cent decline
- Australian markets steady
- Bangladesh tannery relocation issues hit exports in Q1
- Brazilian prices unchanged
- China’s hide imports down in October
- Hebei tanneries, shoe factories again under environmental scrutiny
- Colombian slaughter, meat production drops in past 3 years
- Veal Skins see first drop in more than a year
- European cows still troubled
- Arzignano water treatment plant raises rates
- Japanese hide import figures for October 2017
- Panama to explore business in China, possible joint slaughterhouse
- Turkish Tax on wet blue hits split price
- UK/Irish Ox/Heifers: Five cents less
- Heavy Texas Steers up $1.00
Click on a specific headline to go directly to a particular story.
Africa
South African Lamb markets remain steady
*Prices quoted in USD/dz
Category | This Week | Last Week 11/17/2017 |
Lamb I-III top quality | 270-280 | 270-280 |
Lamb IV B | 240 | 240 |
Lamb HS1 | 150 | 150 |
Lamb HS2 | 130 | 130 |
Lamb TRA | 80 | 80 |
Lamb TRB | 50 | 50 |
Central African lamb/sheep markets see 5 cent decline
*Prices quoted in USD/dz (crust)
Category | This Week | Last Week 11/17/2017 |
Goat skins, new harvest (Mali, Iv. Coast) | 70-75 | 75-80 |
Lighter goat skins, new harvest (Mali, Iv. Coast) | 65 | 70 |
Northern African calves remain unchanged
*Prices quoted in USD/square meters (crust)
This Week | Last Week | |
Chrome tanning | 21 | 21 |
Veg. tanning | 27 | 27 |
Argentina
Again last week, Argentina’s market saw slow domestic sales. Sources say that prices remain unchanged as the market enters December and the pre-holiday period.
Buenos Aires
Steers | $0.91 |
Cows | $0.81 |
Heifers | $0.91 |
Beef exports see strong increase
Exports of Argentine beef in the first ten months of 2017 reached a value of approximately $1.046 million dollars, +23.3% higher than the $848 million dollars obtained between January and October 2016. Export value for the month of October 2017 was significantly higher, (+48.3%), in relation to the turnover for October of 2016.
The volume of Argentine beef exports during the first ten months of 2017 were significantly higher than the the same period of 2016. Exports volumes were up +31.1% and, in the year-on-year comparison, it is observed that export sales in October 2017 were significantly higher than those in October 2016. In a broader context, comparing the average of exports for the months of October during the years 2010 to 2017, the current year represents 71% of the average volume registered throughout the decade previous.
Australia
Australian markets remain unchanged
AUSTRALIA Wet blue, ox, USD/piece
Grade A | This Week | Last Week |
14 kg | NA | NA |
14-18 kg | 46 | 46 |
18-23 kg | 60 | 60 |
23-27 kg | 71 | 71 |
27-31 kg | 78 | 78 |
31kg and up | 90 | 90 |
Grade B | This Week | Last Week |
14-18 kg | 42 | 42 |
18-23 kg | 50 | 50 |
23-27 kg | 66 | 66 |
27-31 kg | 75 | 75 |
31kg and up | 80 | 80 |
Grade C | This Week | Last Week |
14 kg | NA | NA |
14-18 kg | NA | NA |
18-23 kg | NA | NA |
23-27 kg | NA | NA |
27-31 kg | NA | NA |
31 kg and up | NA | NA |
Bangladesh
Tannery relocation issues hit exports in Q1
RMG Bangladesh
Export Promotion Bureau (EPB) data shows that the export of leather and leather products fell significantly in the first four months (July–October) of the current fiscal year (FY2017–18). The sector registered a slightly negative growth rate of 0.02 percent with earnings of US$428.44 million.
Industry experts say environmental pollution in hide processing, increasing lead times due to Chittagong port congestion, a shortage of skilled workers and a lack of product variety are all reasons behind the negative growth. Shaheen Ahamed, Bangladesh Tanners’ Association (BTA) chairman, told The Independent that exports fell after leather factories moved to the Savar Tannery Complex as utility and infrastructure services there are not up to the mark.
Ahmed, who is also managing director of Kohinoor Tanneries Ltd, said: “Around 65,000 people used to work in the tanneries in Hazaribagh before we shifted all the factories to Savar. As a result, many people have lost their jobs. This has hit the export of leather goods.” He noted that among the 150 factories, half have begun operations at the Savar Leather Industrial Park.
“The waste disposal system there is not functioning well. Moreover, roads go under water if there is even a little bit of rain,” he added.
Ahmed said owing to the availability of raw materials, 350 million square feett of leather is produced annually in Bangladesh. Of this amount, 20–25 percent goes to meet domestic demand, while the rest is exported. There is a huge domestic demand for leather goods in Bangladesh, he noted.
Bangladesh is one of the fastest growing centrers for leather and leather product sourcing. About investment prospects, Saiful Islam said China is a big concern for most of the global brands and sourcing diversification was necessary. Given these factors, if investors decide to move to a cost-competitive manufacturing base, Bangladesh would be the most lucrative option.He also said the leather sector is the country’s second largest export earner at US$1.3 billion and employs about one million people directly and indirectly.
BLLISS leather goods fair to be annual event
The leather goods industry has decided to make its international sourcing show an annual event thanks to a good respons from buyers.
The three-day Bangladesh Leather Footwear and Leathergoods International Sourcing Show (BLLISS) attracted buyers, brands and business leaders from more than 20 countries, including China, India, Vietnam and Thailand.
Organizers say BLLISS has been instrumental in changing the mindset of those from abroad about Bangladesh’s leather goods and footwear and helping to attract new buyers. During BLLISS 2017, brands and buyers visited leather goods and footwear factories and were introduced to production and management practices and the overall culture of manufacturing and exporting in Bangladesh.
“Some of the Bangladeshi factories are even much better than that of factories in Italy,” said William Wong, president of the Federation of Hong Kong Brands. As a potential investment relocation country, Bangladesh is considered an emerging country in the global footwear export market, Wong said.“The BLLISS event was organized for the first time and it showed professionalism in all aspects,” said Rachid Maliki, general manager for supply chain and procurements at RM Williams.
Around 70 international dignitaries, including business leaders of 16 footwear associations from Asian countries, visited BLLISS 2017.
Untreated waste big issue at Savar park
RMG Bangladesh
The Tannery Industrial Park at Savar that is under construction has become a huge source of pollution since 100 out of 155 tanneries have relocated there in the past eight months. Concern has arisen over the 15,000 cubic meters of untreated waste being released daily into the Dhaleswari River daily the tanneries. The government’s failure to fully commission the central effluent treatment plant and install other supportive facilities over the past 14 years is fingered as the cause.
The park has been turned into a dumping yard for liquid and solid toxic waste from the factories, say environmentalists. Much of the problem us due to the CETP, which is used to treat the waste only four hours every day instead of around the clock. Additional problems are caused by factory owners who throwing solid waste into the pipes intended for draining liquid wastes without fixing strainers. Consequently the park gets submerged by liquid waste spilling from the drainage pipes.
In addition, factory are creating yet another problem by dumping solid waste at the park instead of designated areas. Local residents say that untreated liquid waste is released into the Dhaleswari River around the clock using three drains built for draining rain waters.
Bangladesh Paribesh Andolan general secretary Abdul Matin said that in the name of relocating tanneries, the government moved pollution from Hazaribagh to Savar. He said that now both the the Buriganga and the Dhaleswari are being polluted. Project director Ziaul Haque blamed the Chinese contractors for not operating the CETP round the clock. Bangladesh Environmental Lawyers Association chief executive Syeda Rizwana Hasan said that tannery relocation would be meaningless if the government fails to stop pollution.
Benelux
Benelux Bulls: 30-39 kgs drop 10 cents, 40-49 kgs 5 cent decline
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Benelux | 30.0 – 39.0 kgs | 1.80-1.90 | 1.90-2.00 |
Benelux | 40.0 – 49.0 kgs | 1.85-1.95 | 1.90-2.00 |
Brazil
In Brazil last week, the Real closed at R$3.2610 against the US dollar, a change of 0.7% compared to the previous week’s R$3.2365. Slaughter and tannery production is still low and despite the continued pressure for a price reduction, fresh hides remained stable. The exchange rate change was not favorable for Brazilian leather exports. On the sales side, there is little news. The average daily revenue of Brazilian leather exports in the first four weeks of November was only $6.8 million, down from $ 7.1 million last year.
Brazil negotiates port use in Spain to expand exports to Africa and Europe
Beef Point
The Ministry of Agriculture, Livestock and Supply (MAP), in partnership with the Ministry of Foreign Affairs, held a meeting between logistic operators and Brazilian agribusiness sector entities with the Board of Directors of the Port of Las Palmas, in the Canary Islands, Spain. They were presented opportunities through the use of the Spanish warehouse in the re-export of Brazilian commodities to Africa and Europe.
The negotiation for use of the Spanish port resulted from the official mission by MAP Executive Secretary Eumar Novacki to Spain in October 2017 on the occasion of the visit to the Fruit fair. Novacki’s official agenda included a meeting with the Las Palmas port board, which operates shipping lines for more than 30 African countries and is prepared to berth large vessels. It is also capable of storing grains, fruits, meats and machines and redistributing them to different African destinations on smaller vessels.
Evaldo da Silva Júnior, director of the Department of International Promotion of Agribusiness, said that “the existence of alternative trade routes that are already traditionally used by exporters of Brazilian agricultural products is healthy for the country.
Minerva expects Brazil to resume exporting beef to in Q1
According to Minerva President Fernando Galletti de Queiroz, Brazil will resume exporting fresh beef to the United States in the first quarter of 2018.
The US suspended Brazilian beef exports in June after an excessive number of shipments failed USDA inspections. Queiroz said his expectations comes from discussions with the Agriculture Ministry.
Last week Russia also instituted a ban on Brazilian beef and pork, leading Minerva to supply Russia from plants outside Brazil. IN 2017, Minerva bought Mercosur-based beef plants from JBS in a $300 million deal, expanding its reach in the region outside of Brazil. The CEO did not say when the three slaughterhouses it bought from JBS in Argentina would reopen, according to a report from Reuters.
Canada
Canada’s federally inspected slaughter for the week ending November 25, 2017, was 62,230 which is 7,493 hides more than the previous week’s 54,737. For the same week in 2016, slaughter was 52,575. Year-to-date Canadian cattle slaughter is 2,566,568, compared to 2016 when it was 2,414,426, an increase of 6.3%.
China
China’s hide imports down in October
From September to October, China’s imports of Whole hides >16 kg declined by 18% overall. The 2,207,886 hides imported is still up 37% from the 2017 low, which was in July. For 2017 through the end of October, China has imported 24,474,156 hides in this category.
With regard to wet blue, total imports were down 9 percent from September to October, logging the second lowest monthly total – 22,366,595 kg. — just 1% above the year-to-date low in January and 21% below the year’s monthly high, which was in May. For the year so far, China has imported 245,779,630 kg.
In the category of “other wet blue cow hide,” imports plummeted from September. October’s 14,306,818 kg total represents a 37% drop. It is also down 61% from the monthly high for 2017, which was in May.
Hebei tanneries, shoe factories again under environmental scrutiny
The northern Chinese province of Hebei is once again under the environmental spotlight by the Provincial Department of Environmental Protection. A solid waste investigation program has been launched covering the leather, fur, shoe making, plastic recycling and other polluting industries to gather data on how to manage and utilize solid industrial waste from these manufacturing processes.
The aim is to verify the origins of hazardous waste and identify the companies generating it in the above-named industrial sectors. When this data has been collected a plan should then be put forward for a feasibility study for the utilization of such waste.
The data will be gathered by the municipal and county environmental protection departments, which are also responsible for the investigation at all levels. The Provincial Environmental Protection Department will organize random checks to verify any concealment or omission resulting in environmental pollution accidents and any personnel involved will be held responsible.
There is already talk in the media about more tanneries being shut down in Hebei province even before all the data has been collected and analyzed.
Chinese manufacturing may not be moving to Africa all that soon
Reuters reports that despite China’s shift of sourcing and production of consumer goods to Africa, it may be too soon to declare that Africa will be the next next factory to the world.
A new study by researchers at Peking University’s Center for New Structural Economics, found that few Chinese manufacturing firms are relocating as a result of rising wages in China, and if they do, Southeast Asia is the preferred location.
The researchers surveyed 640 Chinese firms producing home appliances, garments, footwear, and toys, and employing about 16 million workers. Rising wages—they grew between 9% to 11% between 2005 and 2014 at the factories—were the most cited challenge.
However relocation was not the typical remedy — automation was. Almost a third of the companies said upgrading technology was the top strategy and more than half said it was among their top three. Estimates are that Chinese manufacturers will have the world’s largest number of installed industrial robots, by 2018 (600,000), according to the Industrial Robot Statistics.
Only 6% of firms said relocation of production was their most likely response, and only half of those said they would relocate to areas outside of China. Among 62 firms that had invested abroad or planned to, only two named Africa as a preferred destination. Southeast Asia was a far more likely destination.
Colombia
Colombian slaughter, meat production drops in past 3 years
Contexto Ganadero
“In 2015, between January and September, Colombia produced 619,000 tons of carcass meat, and this year it has only reached 539,000 tons,” said Fedegán president José Felix Lafaurie.
A comparison of the slaughter figures reported by DANE between the periods of January to September 2015 and 2017, shows a decrease in the supply of meat, while appreciating the enormous effort of the farmers reflected in the increase of efficiency.
The comparison of the figures of bovine slaughter in the last 3 years shows a bittersweet panorama.
On the one hand, the sector offers less meat to Colombian consumers, which is a logical consequence herd decline, the lack of public policies to boost the sector, and illegal slaughter, among others. On the other hand, efficiency indicators show positive signs.
During January-September 2015, 2,953,463 head were slaughtered, but this year, slaughter decreased to 2,517,674 animals. That means slaughter dropped by about 436,000 head, which, in percentage terms, represents a fall of 17.3%.
The contraction of the sector is of such magnitude that, between these two periods, this economic activity lost about 939 billion pesos.
The impact for domestic consumption is greater due to the exports of live cattle, which went from 43,785 head to 81,396, recording an increase of 37,576 animals, that is to say 46.2 % more. Despite this, the figure for 2017 is lower than that registered in 2016 by 11,139 heads, which can be explained by the foot-and-mouth disease problems registered in the previous months of this year.
Today, cattlemen are slaughtering heavier animals. The average slaughter weight in males went from 448.9 kilograms in 2015 to 458.5 kilograms in 2017. This is a significant increase of 9.6 kilograms per animal, which represents a weight gain of 2.1%.
For females, the weight increased in greater proportion. In 2015, the average slaughter weight was 371.2 kilograms and this year it was recorded for the same period compared (January-September) of 382.6 kilograms. This represents an increase of 12.5 Kilos, equivalent to 3.2%
The shortcomings in the sector caused by the destruction of tertiary roads, especially in winter, are evident in the increase in insecurity recorded by the alarming growth of cattle rustling and carnage, and of course in the unfair competition represented by the excessive smuggling, and the the absence of public policies that have completely forgotten the issue of bovine repopulation or of improving credit conditions for the agricultural sector in general.
Costa Rica
Export of sheep leather to China approved
The union of sheep producers confirmed that the Chinese government has already approved the protocol and the respective certification for imports of sheep leather from Costa Rica.
From a statement issued by the Costa Rican Sheep Association:
San José, Costa Rica, November 30, 2017. The governments of China and Costa Rica have reached an agreement so that producers of Costa Rican sheep can export leather of these animals to the Asian nation.
During the National Congress of Sheep Producers of Costa Rica 2017, which took place at the Balsa Athens Headquarters of the National Technical University (UTN-Athens), the Director of the National Animal Health Service (SENASA), Bernardo Jaén confirmed that a government delegation from the People’s Republic of China visited Costa Rica two weeks ago to finalise the respective negotiations.
Finland
Finnish cow, bull markets stable
Cows | This Week | Last Week 11/24/2017 |
Finland* | 1.80 | 1.80 |
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Finland* | 34 kg and up | 2.30 | 2.30 |
France
Veal Skins: First drop in more than a year
Stable prices for French skins, while Holland’s willingness to deal results in a drop of 5-10 cents per kilo. For more than a year, calf did not show any signs of this type, and the reason seems understandable: The demand for high quality demand is always great, but for lower quality fashion brand decisions are conditioned by price and therefore tanneries have included semi-bovines subjected to innovative finishing, in order to make skins suitable for use in leather goods. We must also consider sheepskin, which is an alternative for some articles by. The result is that prices started to fall and no one wants to pay more than €6.00 for Dutch large sizes (over 14,5 kg).
*All prices quoted in Euros/kg. delivered North Italian tannery, payment 30 days
Weight | This Week | Last Week 11/17/2017 |
13+ kgs (Luxury) | 8.00-9.00 | 8.00-9.00 |
13+ kgs (Black and White) | 6.80-7.20 | 6.80-7.20 |
8-12kgs (Luxury) | 6.80-7.20 | 6.80-7.20 |
8-12kgs (Black and White) | 6.30-6.60 | 6.30-6.60 |
French cow markets stable
Cows | This Week | Last Week 11/24/2017 |
French Bretagne 32 kg and up | 1.80-1.90 | 1.80-1.90 |
French Bretagne 32 kg and under | 1.85-1.95 | 1.85-1.95 |
Central French 32 kg and up | 1.70-1.75 | 1.70-1.75 |
Central French under 32 kg | 1.65-1.70 | 1.65-1.70 |
French bull markets stabilize
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
French – CentralFrench – Bretagne | 37 kilos and down37 kilos and down | 2.30-2.352.50-2.60 | 2.30-2.352.50-60 |
French – CentralFrench – Bretagne | 37 kilos and up37 kilos and up | 2.20-2.252.45-2.50 | 2.20-2.252.45-2.50 |
Germany
European Cows: No market for under 30kg
This week saw rising value for cows, which was not recorded for a long time. The 40+ southern German selection earned five cents and rose to €2.00/kg. This is the exception that confirms the rule: All other values remained stable, if not experiencing a slight decline. For selections below 30 kg there is no market. The 25+ North German are sold at €1.30/kg, while 15-24 kg lost five cents, dropping to €1.40/kg. French cows are stable, but the difficulties of Tuscan tanneries push the contracts for these and other sources to very low volumes. In addition, tanners are increasingly attentive to the quality of the materials received and disputes are overwhelming, not only on salted hides but also on fresh hides. The situation is undoubtedly complicated.
Cows | This Week | Last Week 11/24/2017 |
N. German 25 kg and up | 1.30 | 1.30-1.35 |
N. German 15-24 kg | 1.40 | 1.40-1.45 |
S. German 40 kg and up | 2.00 | 1.95 |
S. German 30-39 kilos | 1.65-1.70 | 1.65-1.70 |
German Heifers: some selections have 5-10 cent drop
Heifers | This Week | Last Week 11/17/2017 |
N. German 25 kg and up | 1.60 | 1.65-1.70 |
N. German 15-24 kg | 1.80-1.85 | 1.80-1.85 |
S. German 40 kg and up | 2.00-2.05 | 2.00-2.05 |
S. German 30-39 kilos | 1.90-1.95 | 1.90-1.95 |
S. German 24-30 kilos | 2.05 | 2.05 |
S. German 15-24 kilos | 2.20 | 2.20-2.25 |
N. German bulls see 5-10 cent drop
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
N. German | 30.0 – 39.0 kgs | 1.95 | 1.95-2.00 |
N. German | 40.0 – 49.0 kgs | 1.80 | 1.90 |
S. German | 40.0 – 49.0 kgs | 2.20 | 2.20 |
S. German | 50.0 kilos and up | 2.20 | 2.20 |
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 remain stable
*Prices quoted in USD/dz (pickled)
Category | This Week | Last Week 11/17/2017 |
Lamb skins (70/20/10) | 80 | 80 |
Lamb skins (C2) | 50-55 | 50-55 |
India
Indian buffalo markets remain stable
*Prices quoted in USD/sf (crust)
Category | This Week | Last Week 11/17/2017 |
Crust, 1.2-1.4 mm | 0.80 | 0.80 |
Crust, 0.9-1.0 mm | 0.72-0.75 | 0.72-0.75 |
Kozhikode’s big contribution to Kerala footwear industry
The footwear industry of the Malabar region a big increase in the annual cumulative turnover of the Kozhikode-based footwear companies, which crossed the Rs 1,500 crore, according to the Kerala State Small Scale Industries Association. With 150 manufacturing units supported by 300 ancillary units and providing direct employment to 25,000 workers, the footwear sector has been a breadwinner for thousands of families. With many popular brands including VKC, Paragon, Lunar, Mark, Odyssia, Cubiz, Fisher, Hawalker and Jogger, the state’s footwear sector is strong and most of the players have their origins in Kozhikode.
V. Naushad, vice presidnet of the Confederation of Indian Footwear Industry, who is also the managing director of VKC group, said that Kozhikode is contributing a lion’s share of the state’s footwear production. “Unified efforts of the industry players helped in making significant growth over the years”, he said, adding that India could pose a challenge to China as the global footwear market leader in a few years.
Iran
Iran mutton/goat markets remain steady
*Prices quoted in USD/dz (pickled)
Category | This Week | Last Week 11/17/2017 |
Muttonskins (AB) | 90 | 90 |
Muttonskins (2B) | 70 | 70 |
Muttonskins (super) | 45-55 | 45-55 |
Goatskins medium | 25-28 | 25-28 |
Italy
Italian veal skin markets remain stable
Weight | This Week | Last Week 11/17/2017 |
18kg and up | 4.50-5.00 | 4.50-5.00 |
18kg and under | 4.10-4.50 | 4.10-4.50 |
Italian cow, bull markets steady
Cows | This Week | Last Week 11/24/2017 |
Italian | 1.15 | 1.15 |
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Italy | 40 kg and up | 1.90 | 1.90 |
Arzignano water treatment plant raises rates
La Conceria reports that rates for the 131 industrial users of the Arzignano purification plant (Vicenza) will be going up. The assembly of Acque del Chiampo, the company that manages the plant, approved an increase effective March 2018. Despite initial indications, the increase will not be linear and transversal (the first proposal spoke of a 6 % then reduced to 5%), but modulated, providing a fixed increase of 2% and another variable between 0.4% and 7.4% based on the quantity and quality of the waste produced. The company’s stated objective is to encourage the containment of waste production, while still gathering the resources necessary to install the new works planned for the plant and the network. Acque del Chiampo has planned an investment of €20 million for 2018-2020 to be spent on expansions and modernizations, including a new oxidation tank.
Meanwhile, industry members are not pleased. “We are willing to have a dialogue, but are critical of this decision,” said Bernardo Finco, president of the Concia section of Confindustria Vicenza, “They did not give us time to analyze the issue, and in a week they turned it from theory to practice”. This is a “draconian attitude,” according to Finco. “With a budget presented last year and which sees 4 million profit, we do not see the need to fish right from the pockets of tanners to make investments.”
Lineapelle Economic Service says shoe figures encouraging
Despite a stagnant third quarter, that fact that Italian shoes saw +2% growth in the first 9 months of 2017 is encouraging. Similarly, chagnes in European footwear are positive: On the Old Continent, the double-digit growth of Germany, France and Poland stand out. The stop in Great Britain is bad. It is the balance of footwear in this first part of 2017 elaborated by Lineapelle’s Economic Service. Looking at other industry segments, Italian leather goods in the first 9 months grew by double digits, as well as the European leather goods, with the exception of France, which was down. While the favorable moment for upholstered furniture (Italian and European) continues, the automotive sector is also putting out positive numbers. Clothing is still having difficulties for clothing. Read the entire Lineapelle report here.
Japan
Japanese hide import figures for October 2017
Tatsuno city emerging as Japan’s leather hub
ANI
Every year, the city hosts an annual leather festival.
Mikio Nakashima, Executive Committee Chairman, Tatsuno City Leather Festival, said, “We hold the Tatsuno Leather Festival every November. It is a large local event where about three 30,000 residents out of 70,000 residents of Tatsuno City visit. The fundamentals of the festival are industry, education and municipal administration. The most important is the value of education, while industry and political administration are secondary.”
The leather industry has developed within a rich, natural environment in Tatsuno. Traditional making of leather has been passed down for 62 years since the foundation of Nakashima Leather Company. The company maintains consistent production from hides to finished materials.
Nakashima further said, “We have an ideal climate, clean water, and the best location near Ako city which produces fine salt. Salt is the most important part of our leather production. The leather industry developed within this endowed, natural environment. The leather industry of Tatsuno began about 1,000 years ago from most historical accounts. The leather was originally used to produce armor for samurais, which over time led to the development of leather being used to produce clothes such as leather jackets, then bags, shoes, belts from about 50 years ago. Tatsuno city now produces about 70 percent of total leather production in Japan. It has exhibited its products in Milan and fashion shows like Fashion Week of Paris.”
The art of leather making, produced through a thousand years of traditional technology and processes has become a fashion of glamour: a garment that decorates people’s personal belongings.
The leather goods market has not only spread from Tatsuno city to other cities in Japan but to everywhere in the world.
Netherlands
Dutch veal skin markets see 10-20 cent drop
*All prices quoted in Euros/kg. delivered North Italian tannery, payment 30 days
Weight | This Week | Last Week 11/24/2017 |
14.5 kgs | 5.00-5.50 | 5.10-5.70 |
16.5 kgs | 5.40-6.00 | 5.60-6.10 |
Dutch cow market stable
Cows | This Week | Last Week 11/24/2017 |
Dutch | 1.30-1.35 | 1.30-1.35 |
New Zealand
New Zealand markets remain stable
NEW ZEALAND Wet blue ox, selection 80%-20%, USD/piece
This Week | Last Week | |
20-24 kg | 86 | 86 |
24-27 kg | 89 | 89 |
27+ kg | 97 | 97 |
NEW ZEALAND Wet blue heifers, selection 80%-20%, USD/piece
This Week | Last Week | |
14-18 kg | 70 | 70 |
18-23 kg | 86 | 86 |
NEW ZEALAND Wet blue cows, selection 80%-20%, USD/piece
This Week | Last Week | |
14-18 kg | 58 | 58 |
18-23 kg | 70 | 70 |
New Zealand lamb skins steady
*Prices quoted in USD/dz (pickled)
Category | This Week | Last Week 11/17/2017 |
Lamb skins (standard) | 70 | 70 |
Lamb skins (C grade) | 28-30 | 28-30 |
Norway
Norwegian cow markets up 10 cents
Cows | This Week | Last Week 11/24/2017 |
Norway 17+ (av 24 kg)–* | 2.50 | 2.40 |
Norwegian bull markets stable
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Norway* | 34 kg and up | 2.65 | 2.65 |
Nigeria
Nigerian lamb markets remain stable
*Prices quoted in EUR/sf
Category | This Week | Last Week 11/17/2017 |
Cross lamb A | 2.80 | 2.80 |
B | 2.40 | 2.40 |
C | 1.80 | 1.80 |
L1 | 1.50 | 1.50 |
L2 | 1.25 | 1.25 |
Nigerian goat markets flat
*Prices quoted in EUR/sf
Category | This Week | Last Week 11/17/2017 |
ABC | 1.85 | 1.85 |
D | 1.65 | 1.65 |
E | 1.50 | 1.50 |
F | 1.25 | 1.25 |
L | 1.00 | 1.00 |
Pakistan
Pakistani buffalo crust stable
*Prices quoted in USD/sf (crust)
Category | This Week | Last Week 11/10/2017 |
Crust, 1.2-1.4 mm | 0.75 | 0.75 |
Crust, 0.9-1.0 mm | 0.70 | 0.70 |
Panama
Panama to explore business in China, possible joint slaughterhouse
In January 2018, a delegation of businessmen from the livestock sector will be visiting the Asian country to develop new commercial alliances to increase exports of bovine meat.
Panamaamerica.com.pa reports that “…According to the president of the National Association of Cattle Ranchers (Anagan), Aquiles Acevedo, the aim of the visit is to look for new alternatives for exporting bovine meat. Acevedo explained that the Anagan will invest in livestock and raw materials, while the Chinese will provide the marketing, which is another way to export meat.”
The aim of livestock producers, who will visit China along with authorities from the Ministry of Agricultural Development (MIDA), is to create an alliance in which they invest in raw materials and livestock, and counterparts in China will develop the market. Acevedo indicated that “… one of those alternatives is the construction of a slaughterhouse under a ‘Joint Venture’ scheme.”
“… From January to August, beef exports amounted to $12 million, according to figures from the Anagan.”
Poland
Polish cow, bull markets steady
Cows | This Week | Last Week 11/24/2017 |
Poland 26/27 kg* | 1.30 | 1.30 |
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Poland* | 40 kg and up | 2.25 | 2.25 |
Spain
Lamb and Sheep Market: High prices for African origins
The situation for sheep is extremely contrasted. Prices are steady for both European and African origins, but if stability for British skins means staying at the lowest level, for South African skins it means staying at the highest historic level, and the same goes for example for Nigerian sheepskins. Generally, anything not used for garment is doing fine. It’s a good time for medium/high quality leather shoes and soft leather goods. In Solofra, however, only a few companies are doing well — meaning those most connected to the basic articles of luxury brands — while the others are sadly waiting for Christmas.
*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 11/17/2017 |
Entre Fino doubleface | 11.00 | 11.00 |
Entre Fino nappa | 10.50-12.00 | 10.50-11.50 |
Merino doubleface | 14.50-15.00 | 14.50-15.00 |
Merino 80/20 1st/2nds | 14.00 | 14.00 |
Merino 2nds | 7.75 | 7.75 |
Lachaune Lechal 90/10 % 1st/2nd | 7.50 | 7.50 |
Lechal aprox 40% P+SP balance rasato | ||
100% 1st | 5.00 | 5.00 |
90/10 % 1st/2nds | 4.00 | 4.00 |
Tigrados original | 2.00 | 2.00 |
Spanish cow, bull markets stable
Cows | This Week | Last Week 11/24/2017 |
Spain* | 1.30-1.35 | 1.30-1.35 |
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Spain | 40 kg and up | 2.00-2.10 | 2.00-2.10 |
Sweden
Swedish cow, bull markets steady
Cows | This Week | Last Week 11/24/2017 |
Sweden* | 2.10 | 2.10 |
Bulls | Avg. Green Wt. | This Week | Last Week 11/17/2017 |
Sweden* | 34 kg and up | 2.45 | 2.45 |
Turkey
Tax on wet blue hits split price
Turkey’s August 17 institution of a tax on the export of wet blue hides and splits at $ 500/ton came as surprise to the country’s market. Typically, all efforts by tanners were aimed at preventing the export of wet blue hides, not splits. This could have been because because they d not know the difference between full-grain leather and splits. On the heels of the announcement, the Turkish Tanners Association asked the Economic Ministry to cancel the tax on splits, which it finally did last week.
The tax has interrupted the possibility of exports and the dropped the price of splits by about 10-20%. Sources say the price is expected to return to previous levels.
United Kingdom
UK/Irish Ox/Heifers: Five cents less
Projections have been rejected. The price drop in recent weeks was not enough, contrary to our expectations, and the latest contracts were closed at £1.25-1.30/kg for 36+ English and at €1.35/kg for the same Irish selection. A stronger sterling pushed down the values of British hides, which must deal with American competition. Italian tanneries, if they can, prefer to buy in Britain for reasons related to delivery time and average quality assured by flaying operations in British slaughterhouses, but the pressing need to adapt has won out. Alternatives are not lacking and high American slaughter figures benefit those who buy, not those who sell.
*UK prices in GBP, Irish Prices in Euros, delivered North Italian tannery, payment terms 30 days
This Week | Last Week 11/24/2017 | |||
OX/HFRS | UK | Ireland | UK | Ireland |
36.00 and up | 1.25-1.30 | 1.30-1.40 | 1.30-1.35 | 1.35-1.45 |
31.00 – 35.50 | 1.35-1.40 | 1.40-1.50 | 1.40-1.45 | 1.50-1.60 |
26.00 – 30.50 | 1.45-1.50 | 1.45-1.55 | 1.50-1.55 | 1.55-1.60 |
25.50 and under | 1.55-1.65 | 1.60-1.65 | 1.60-1.70 | 1.65-1.70 |
UK lamb/sheep markets remain flat
*Prices quoted in GBP/pce.
Category | This Week | Last Week 11/17/2017 |
Sheep skins | NQ | NQ |
Hoggets | 1.00 | 1.00 |
New season lambs | 2.00-2.20 | 2.00-2.20 |
United States
Heavy Texas Steers up $1.00
Volume in 66/68 lb.Texas steers appeared to be limited due to the fairly well sold positions of producers. There were a few sales reported at $54.00 as well as $55.00. Offerings of 74/76 lbs. were seen at $65.00 and 84 and up at $69.00 but there were not any confirmed sales reported.
Venezuela
Farmers say food shortage to worsen in 2018, note slaughter dip
The shortage of food in Venezuela will worsen further in 2018 due to lack of supplies, warned the agricultural union on Tuesday, which believes that only international aid would prevent a collapse.
“The scenario for 2018 is critical: If 2017 was difficult, having inventories left over from 2016 in fertilizers, seeds and agrochemicals, by 2018 we have nothing,” said Aquiles Hopkins, president of the National Federation of Farmers (Fedeagro).
In a speech before the parliament, with an opposition majority, he assured that “there is not a single bag of fertilizer in the country,” while the head of cattle fell from 11 million for the third time in history.
The bovine flock had only fallen to those levels “in the War of Independence and the Federal War,” in the 19th century, the leader illustrated. According to Hopkins, today the agroindustrial sector barely supplies 30% of national consumption, after contributing 70% in the past.
He cited examples such as white corn, which only covered 25% of consumption in 2017, sugar (21%) and coffee (30%), support of the Venezuelan economy before the oil era.
“There is no way to recover production if there is no international aid,” said the executive, who asked the parliament, which has an opposition majority, to support Fedeagro’s efforts so that other countries can provide technological cooperation.
Hopkins said that such assistance implies indebtedness, which requires the support of the Legislative and the government, which he blamed for not providing enough foreign currency for the importation of raw materials.
In Venezuela, the State monopolizes dollars through strict control of exchange and also the distribution of inputs for agriculture.
The socialist government faces serious liquidity problems due to the drop in the price of crude oil – which contributes 96% of foreign exchange – and the bulky service of the external debt, which led to a drastic cut in imports.
The shortage of food has reached peaks of 80% in recent years, according to the Datanálisis firm.
Hopkins complained that the delivery of inputs privilege state enterprises, including one administered by the military, with a strong presence in the government.
“We would like to see our Navy out guarding the borders, fighting extortion, kidnapping, cattle rustling and thefts of farms, and not trying to do what it does not know how to do,” he said.
Zimbabwe
Bata upgrades tannery in Zimbabwe
Bata is upgrading its tannery in Zimbabwe, including new drums for soaking, tanning and retanning, as well as a new shoe-making machine. The production facility and shoe factories are in Gweru, which has over 90,000 inhabitants in the province of Midlands. “We are replacing some of the machinery, and the machinery of the tanneries is very expensive,” the general manager of Bata Zimbabwe told the local press. The goal is to increase product quality and also the variety of production.