OTMS scheme ends

July was very quiet in terms of business done due to the UK tanners going on holidays at the end of July/early August. Italy is also on its traditional holidays in August and the phones are dead. Stocks of hides are building up around the country and prices are under pressure from the few buyers still in the marketplace. Green hide prices rose during July as slaughterhouses dug their heels in and held out for higher prices on reports from America about increased hide prices. However, in the current market, it is not possible to convert the green prices into profit so we either need the market to lift or pull back green prices again. The interesting news this month is that the over-thirty-month scheme (OTMS) will end, although the final details have yet to be agreed as to testing etc. But the essence of the decision is that the salted hides from OTMS cattle will be available for export again and the expectation is that this kill will be handled by all processors as part of their normal kill rather than at dedicated plants. The UK tanners have developed their own markets for these cow hides which, prior to the BSE outbreak in 1995, went mainly to Italy in wet salt, and it will be fascinating to see how the low prices will rise when we can operate in a free market situation again. It is expected that the UK tanners will continue to source the majority of these hides for their own production. Prices for hides at the end of July were as follows: 36kg+ ................................... 86p 31/35.5kg .............................. 87p 26/35.5kg .............................. 95p 22/25.5kg ........................... £1.10 Cow hides went for £24.50 salted on the run. Lambskins have been scarce so far this year and numbers will continue to be low for the rest of the season. This has caused skin handlers to chase any skins available and has kept pressure on the green price, particularly in Ireland where prices have been consistently high all season, and will continue because of the low kill. Irish doubleface sold for £8.20 delivered Türkiye at the end of July and Turkish tanners were complaining that the price was too high.