Germany – Business uncertainty
Published: 18 Mar, 2020
Uncertainty about the immediate future is currently the dominant theme in discussions between sellers and their European counterparts. Request to delay deliveries, especially programmed ones, are rather common. As it stands, the business is not experiencing disruptions at the moment, but everyone is preparing for the different scenarios that the spread of the Covid-19 may bring about, including the protracted closure of frontiers between states. The other main theme under discussion is the short-to-medium term impact of the crisis on leather demand: at this point, with the spread of the virus still on the rise, any answer appears little more than pure speculation.
The few bids that sellers receive, especially from China, are at lower levels than before and in some cases substantially lower. Although the price of hides has managed to hold so far, pressure is bound to increase.
Just like hides, beef demand does not seem to have felt the consequences of the crisis yet, but also in this case it is unclear for how long the current balance will hold. The average carcass weight is in the higher range. For further information click here.