Slaughter down on higher inventory

The inventory was 2% up on February 1, 2007, but 1% lower than February 1, 2006, and was the second highest February inventory since records began in 1996.

Export sales of raw hides for the four weeks under review showed China yet again in pole position with 780,200 (692,700) hides.

Hong Kong was in fifth place with 114,000 (40,200), giving the region a combined total of 894,200 (732,900).

Korea again came in second place with 424,799 (442,000), followed by Taiwan with 226,900 (78,599). Mexico took 150,300 (78,000).

Vietnam came in sixth with 70,300 (33,300) followed by Japan with 57,700 (68,400).

Thailand purchased 54,300 (49,200); Italy 46,500 (133,100); Türkiye 32,700; India 4,400 (3,300); Canada 2,100 (2,300) and Tunisia 700.

 In addition to the raw hides, kip trade showed Hong Kong  as the biggest customer taking 23,200. Italy was in second place with 6,800 (31,000).

Japan came next with 5,500 (1,100); with China taking 4,700 (2,600); India 4,600 (7,500) and Mexico 1,500 (2,500).

China and Hong Kong took a combined total of 27,900 kip.

Weekly sales of wet-blue for export showed Taiwan buying 81,700 (15,500) followed by Hong Kong with 70,700 (64,100) and the Dominican Republic with 70,200 (58,600).

China dropped to fourth place with 69,200 (83,600) and Mexico took 68,100 (57,700).

In sixth place, Korea contracted for 49,500 (10,800) followed by Italy with 32,000 (72,600).

Vietnam purchased 10,400 (35,700); Canada 5,800; and Germany and India both took 2,000; Thailand 1,500 and El Salvador 1,300. 

China's combined total with Hong Kong amounted to 139,900 (147,700). Hong Kong also purchased 1,731,000lb of wet-blue splits and China 1,186,000. Taking a cancellation of 67,300lb by Hong Kong into consideration, the combined total arrives at 2,849,700lb.

In third place, Korea accounted for 665,000lb. Taiwan was reported as taking 256,900lb but there was also an adjustment of 126,000lb.

Kills remain firm despite record prices

Ireland

Kills in Ireland in February remain firm despite record prices paid to farmers for cattle by abattoirs. In the last eight weeks, the cost of live cattle has risen by almost 25%. Such a dramatic rise in prices has not been witnessed in recent times.

As a consequence beef processors have been casting around frantically to improve their returns from all of their products. Naturally the hide is viewed as fair game in the effort to get a better return.

The processors feel that the hide salters and/or tanners should give more money for the hides and there have been difficult telephone calls for some weeks as the hide salters could not afford to increase their returns.

Indeed we have witnessed a steadily declining market over the past few weeks and hide prices should have fallen in line with the market.

This has resulted in negative margins for hide handlers in January and February. This cannot continue and there was evidence that green hide prices were starting to come back at the end of February.

The biggest difficulty experienced by processors and traders in recent times has been the general slowing up of payments by tanners to suppliers. It started off as a problem with Italy but has now spread all across Europe and China.

It is always a great source of concern when this happens and puts a great strain on cash flow requirements in our business. Those abattoirs that sell their hides green still want to be paid in seven days and those who salt or chill their own hides find themselves caught up in an uncomfortable position, especially those who have started to handle their own hides in recent times.

Stocks of hides are not building up in the system as everything is moving, but on a market drifting down. There is nothing on the horizon to indicate that the slide might stop in the near future, never mind the prospect of firming prices.

Prices at the end of February were as follows:

36kg+     73p

31/35.5kg 81p

26/30.5kg 87p

22/25.5kg 98p

Cows went for £24/26 depending upon weight.

Skin prices in Ireland were firmer due to seasonal large size and weight of wool. Good quality Irish skins went for £2.95/3.20 and English skins went for £2.40/2.50.

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