Are restaurant closures good or bad for the global hide market?
Published: 15 May, 2020
With most restaurants still closed in much of Europe the slaughter has had to be cut back accordingly. Many countries are slowly starting to emerge from the lockdowns imposed by the fallout of the Covid virus, but in most cases the restaurant trade is still not back in place, and will probably one of the last industries to return to something near normal working. Adding to the problems for this trade are the lack of tourists, many countries such as Greece and Spain rely heavily upon this market to survive; but whether this industry returns this year seems unlikely, at least not in any great volume. And so, the hide supply within Europe is set to remain lower than would normally be expected for this time of year, which is no bad thing, as the demand for leather is not going to set any records (other than for poor sales), this may help to stabilise prices at a low base level; but at a point where all sections of the trade can work from. The problem is that cattle are backing up, sooner or later they need to come to the market place, it may well be that much of the beef produced will go into the export trade, to Asia, who seem to be a couple of months ahead of the rest of the world. The problem is, with an increased slaughter, will come an increased hide supply, not just in Europe but also in the U.S. Will the world be ready at that time for these extra hides in the supply chain?
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