Still slow after the summer

A ripple of fear has been sent through the automotive leather upholstery sector as Ford announced that they were reducing the number of component suppliers in an attempt to reduce costs. They intend giving larger and longer contracts to the chosen few, which will be good news for some, catastrophic for other. So fingers crossed that automotive leather tanners will not be too badly hit given the huge amount of investment and effort required to compete in this particular sector.

Japan is still delaying lifting its ban on US beef imports. Their Food Safety Commission claims it needs more time to evaluate US safeguards. And in an effort to alleviate concern over BSE, the Senate has approved a $33 billion budget in preparation for a national animal identification system.

At the same time, six states have lent their support to the R-CALF petition against USDA over their move to reopen the border with Canada. This might be good news for the ranchers but it is bad news for the slaughterers.

Excel parent company, Cargill Meat Solutions have agreed to acquire Beef Packers, Fresno, California, the ninth biggest beef processors. Beef Packers are expected to expand from their current 400,000 head/year.

ACLE Shanghai took place during the month under review. While American traders were able to make new contacts and meet customers face to face, the overall opinion was that interest from Chinese tanners was definitely lower.

A well attended USHSLA seminar during the fair introduced their revised standards governing the export of North American cattle hides. Available in Chinese and English, the booklet covers the handling of claims and hide inspection standards among other things.

Exports of raw hides in the four-week period to September 22 confirmed China in first place with 870,000, followed once more by Korea with 372,800. Taiwan was in third place with 225,700, then Mexico with 131,600, Hong Kong with 96,200, and Japan with 72,600.

Thailand took 42,500 followed by Italy 18,000, Vietnam 16,100, the Dominican Republic 9,600, Indonesia 7,300 and Croatia 3,200.

At the same time Italy took 2,600 calf and 13,100 kip; Japan 4,700 kip; and Türkiye 2,000 calf and 900 kip.

When it came to wet-blues, Italy slipped out of first place, buying in only two out of the four weeks but contracting for 58,200 overall.

China took the lead with 85,500 followed by Hong Kong with 74,800 but with a cancellation reported of 7,400.

The Dominican Republic was in third place with 59,400 followed by Italy with 58,200; Mexico 50,000; Korea 30,400; Taiwan 28,700; Thailand 9,600; India 2,000; El Salvador 1,400; and Japan 1,200.

In the week ending September 15, China took 1,149,200lb of wet-blue splits and Hong Kong 1,301,200lb making a joint total of 2,450,800lb. In the first half of the month China took a total of 2,390,200lb and Hong Kong 1,613,600. During the same period Italy took 484,000lb and Mexico 92,500lb. In the week ended September 15, wet-blue split sales totalled 2,440,600lb which was 67% up on previous week.

Printer friendly version

Email this article to a friend