When is the price right?

The announcement that Michell had decided to lose its plant in Portlaw in the Republic of Ireland came as a surprise to all of us in the hide business here in Ireland when we first heard it. However, when we look at the changes in Ireland in the last year, really it should have been no surprise at all. For too long the slaughterhouses were overpaid for their hides and, naturally, they were happy to keep taking the money. However, this shortsightedness may yet rebound on some of the plants, especially those who have started salting their own hides and marketing the hides themselves. A number of them have already learned a lesson when some of them were hit by claims from Italian tanners in September and October. They think they can keep quiet about this and that no one knows they were caught out but we live in a gossipy little world and word does get out. The plants will learn their lesson and eventually, after a lot of pain (and a lot more than they expect), they will learn the hide business. Meantime, they are offering hides at below market prices in an effort to get into the market and, as a result, are continuing to depress a market which is already in decline. The weaker US dollar and lack of orders, allied to the Christmas break and Chinese New Year, will cause the market to continue to drift downwards until January at least. Prices at the end of November were as follows: 36kg+ ……….........… 73-76p 31/35.5kg …….......... 72-82p 26/30.5kg ….........…. 82-85p 22/25.5kg ….........……… 95p Cows were under serious pressure due to big kills and low demand. The price at the factory gate was expected to fall to £15-£16 ($26-28) in December. Lambskins remained steady in November with Poland coming into the market and a lack of interest from Türkiye. Doubleface went for £5.80 ($9.98) ex yard and fellmongers for £3.80 ($6.50). Skin handlers in Ireland were trying to secure production and began to pay more for the raw skins than they are worth. If this continues, the skin traders will end up the same way as the hide people, Ronans, Irish Hide and Skin and Michell, ie closed.