A difficult month for traders

Published: 06 August, 2007

May proved to be almost as difficult for hide traders as April. Tanners complained and moaned about everything from weights to shapes to flay, to fat to dung and finally to a fall in the value of splits.

It would appear that the increase in hide prices in 2006 by around 14% over 2005 has now taken its toll and the markets are adjusting downwards. The main reason for the increase in the market in 2006 was believed to be demand from shoe tanners after quota import restrictions into the EU from China were lifted in 2006.

Upholstery manufacturers have been struggling to live with the increased prices for the last 18 months and it now looks like the correction in the market will continue into the summer.

The summer holidays are now beginning to feature in planning schedules and there is a feeling that the tanners will use their holidays to further increase the downward pressure in the market place.

Despite cattle numbers starting to decline towards the end of May it was felt that even a sizeable reduction in kill would not stop the downward trend because the American kill had begun in earnest and there were plenty of hides available for European tanners with a strong euro in their pockets to buy US dollar based raw hides.

Prices in May fell back a little to the following levels:

36kg+ ……...................................................... 82p

31/35.5 …...................................................…. 91p

26/30.5 …….................................................. £1.01

22/25.5 …..................................................… £1.10

and cows were back to £28.50.

On the lambskin front the market was depressed with no risk of buyers from Türkiye taking the new season doubleface lambskins. The pattern of kill for the new season lambs has followed the pattern of recent years in that the lamb in Ireland has come on line at virtually the same time as the UK.

Consequently the advantage enjoyed by Irish doubleface sellers has been eroded as large volumes of UK doubleface have hit the market at the same time as the Irish sellers were making their first offers.

Irish doubleface sold at £3.80 delivered and UK doubleface sold at £3.50.

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