Tanners resist prices

Kills finally started to increase in September and prices came under pressure from tanners because China did not take up the expected quantities of hides booked during the Shanghai fair, and hide sellers had volume that had to be moved. The market was further affected during September when the expected interest from Italy, as the Italian tanners returned from vacation, did not materialise. As a consequence wet-blue suppliers to Italy experienced reduced orders and some of the UK producers cut back on their input which left additional hides to go on to the market. The beef processors in Ireland suffered from a strike by farmers who refused to take lower prices for their cattle and all plants in Ireland were shut on September 27. A number of plants also closed voluntarily for a second day because they could not sell beef into the market and make a profit based on the price demanded by the farmers. Sometimes the Irish farmer believes that the market price does not apply to them. The fact remains that there is serious over capacity in slaughtering plants in Ireland and the farmer is getting a good return in market terms for his cattle. The problem is that the farmers are giving too much money for their raw material, ie the young calf that they are buying, known as store calf in the trade, and because of this they make it very difficult for themselves to make a profit. Despite the higher kill and supposed lack of demand from some quarters the fall in hide prices has been gradual rather than dramatic. However, if kills continue to be 40,000+ in October and November and UK wet-blue producers remain quiet then the pressure downwards will gain momentum. Worldwide cow production has increased and the biggest falls in prices have been on cow hides. The seasonal kill in the UK has kicked in and plants that were killing 800 cattle per week in the last week of August were killing 2,000 per week in the last week of September. Prices for hides at the end of September were as follows: 36kg+…................................... 80p 31/35.5….................................. 89p 26/30.5….................................. 95p 22/25.5…................................. 1.00 Cows went for £17 salted ex-yard. Shades of 1998 appear to dominate the doubleface market in Türkiye. Renegotiation of containers on the dockside were common place in September and it was difficult to get a price quote from a Turkish tanner in early October. Once again the folly of having only one market for doubleface skins, and dealing in that market without secured methods of payment, has been proven. Fellmongering skins fell to £2.50 ex-yard in early October.