South Africa – slow recovery following export ban
Published: 12 Jun, 2019
Green hide sales last week were at fundamentally unchanged prices compared to a couple of weeks prior, at ZAR1.72/kg (about US$¢12/kg). With this as an average price, it can be surmised that a number of hides were sold for few US cents per kilo. If not for economic considerations, the raw numbers indicate that there is little margin left for further large reductions, as zero value is now quite near.
Dorperlambskins at the abattoir seem to be slowly moving away from their long-running bedrock price at ZAR30/skin, with the average price last week at ZAR36.67/skin. However, it seems too early to call it a change in the trend, as brief departures from the bottom were observed in the recent past, followed by a return on previous levels. As for merinos, the reported breakthrough with the Chinese customs, if confirmed, should allow for a gradual return to normality in the trade, after the ban following an outbreak of foot-and-mouth disease was recorded in the country.
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