Processors in Ireland were inconvenienced to a certain extent but did not lose out financially to any great degree. Extra care and diligence was required with documentation but otherwise goods moved normally.
All of this turmoil added to what was already a difficult trading time during July and August. Demand for hides was decidedly low key and stocks built up everywhere. Italian tanners took a long summer break but there was some interest from other parts of Europe.
Concern over pollution in the run up to the Beijing Olympics has resulted in the Chinese authorities closing down certain tanning areas to reduce effluent discharge and this resulted in delays in opening L/Cs.
At the Shanghai fair the interest was primarily for low quality hides and anyone with plenty of cheap pieces were the most popular people in town. The fair appeared to have evoked mixed reactions from exhibitors with some pronouncing themselves satisfied with demand and others markedly gloomy about future demand running up to the Olympics.
However, Italy did return with news of reasonable orders secured by tanners and the UK and Irish market booked hides at July prices. There were some small sales in August at lower prices to move on stock but in early September Irish prices strengthened and the gap between Irish and English 36kg+ narrowed to 3/ 4p.
Prices at the beginning of September were as follows:
36kg+ ……………………………………………. 80p
31/35.5kg ………………………………………. 86p
26/30.5kg ……………………………………….. 94p
22/25.5kg …………………………………..… £1.05
and cows went for £25.
The skin market has been badly hit by foot and mouth with China banning import of skins shipped from July 12. This has resulted in a number of containers being returned to the UK which will have to be resold and as a result doubleface were being offered at US$6.60 delivered China and fellmongers at US$5.00. The skin market is in for a torrid time.
Difficult summer for traders
What a summer! Foot and mouth returned to the UK in what appears to be an accidental leak from a testing site near London. It is still unclear as to who was at fault over this but it is quite clear that the UK hide and skin handlers have had to pay a heavy price for which there will be no compensation.