Unic puts the record straight

This is part of a letter sent all over the world by UNIC to 15,000 clients of Italian tanneries: 'Some weeks ago North Korea asked Brussels for meat from BSE-affected cattle to be used as food. Besides a little irony about emotional European consumers, one could note the perplexity about what is going on here. According to analysts the T-bone steak is bound to return to our diet. Beef sales should drop by a maximum 10% at the end of the year and then fully recover in the following months. This is what happened in the UK where, after the plunge in 95-96 due to the mad cow disease, previous demand levels were gradually recouped. The consequences for the availability of raw materials to the Italian tanners are under control. 63% of our cattle hide supplies, including wet-blue and semi-finished leather, has always come from non-EU countries. Now, this share is increasing steadily and rapidly. On the other hand, in the next two to three years the hide supplies are expected to grow as follows: The current health related problems in Europe will reduce the world's hide supplies by 1 to 2% from now to 2003. Therefore, concerns for a heavy shortage of hides are exaggerated. Foot and mouth disease will have a lesser impact, though violent in the very short term. It is an endemic disease. Last year it erupted in Brazil, Argentina and Hong Kong. It usually takes two months for things to get back to normal. The disease infects mainly pigs and sheep. Even the decrease in the supplies of these skins will have little influence on us. The main problem remains price, since demand tends to concentrate on the same markets, favouring the risk of market-cornering and thus creating tension in prices.