Bulletin

Following on from the slaughter of up to 65,000/head of cattle to mark the celebration of the festival of Eid, the realism of the world slump in raw material prices has hit home in a disastrous way. 

Trading in Argentina continues to be difficult. As of December 2015 the export tariff of 15% was imposed on raw and wet-blue material, this was supposed to have been reduced to 10%, but there appears to no clarity as to whether this actually took place.

The winter sheep slaughter levels have now dropped to such a low level that some abattoirs have taken a seasonal shutdown, while most of the other abattoirs are operating on a shorter working week, so as to reduce production.

DSM, a Dutch health and nutrition company, is said to be imminently filing for Brazilian registration of a new feed additive for cows that can cut methane emissions by around 30%.

There is definitely the feeling that the recent heat in the hide market may be starting to cool off. The emphasis seems now to be about maintaining prices rather than trying to push for more, a case of careful what you wish for!

In western parts of the world, beef consumption per capita has been falling for many years. Canada, U.S. and Australia are all predicted to have falls on average of 3% by the year 2024.

Shoe upper tanneries continue to lead the way with inquiries for hides. Over the past two weeks the buying by these tanners has kept the fed steer hide market very buoyant. 

In the hide trade for the past two years, you would have been forgiven for thinking the world was in a serious recession.

Wet-blue prices seem to have stabilised over recent weeks. With the raw material having also stabilised following a long period of price reductions. It seems both suppliers and end use tanners have found a common price ground.

Sales in the Far East have reportedly reduced both in numbers and volume compared to the previous week, with much of the interest still only for the better grade hides.