Abattoirs have to pay more

19 December 2005




Abattoirs were forced to improve the prices paid to farmers for cattle in November and as a consequence kills returned to near normal levels. The increased kill was matched by increased demand from Italy and prices continued to creep upwards in November. A big factor in the rise in hide prices has been the stronger dollar. During mid-November, the dollar went to 1.17 against the euro. When the dollar was 1.3 against the euro, this was given as a reason for the weakness in the market so no one should be surprised by the current rise. The big question is: will the rise in the hide market be sustained? One theory is that Italy wants Irish hides all delivered by early December because after that the dung season will have started and Italy does not want hides with large amounts of dung on them. Furthermore, tanners are wary of purchasing hides that have had the dung clipped off as the clipping action can damage the grain on the clipped hides. Another theory is that kills will be fairly big until mid-December, go quiet over Christmas and resume early in January, staying reasonable throughout January. If these theories are correct then the market will come under pressure and decline. There is another school of thought who maintain that those tanners who are doing well will continue to do well and will lead the way in paying for hides. Prices at the end of November were as follows: 36kg+…...........................…….79p 31/35.5 ..................................... 87p 26/30.5 ..................................... 90p 22/25.5 ..................................... 95p The other major topic of conversation revolves around the cull and what will happen to the hides from pre-1996 cows after the end of the over thirty month scheme. The latest rumour is that these hides will be incinerated. January 22 is the date now mooted for the end of the OTMS cull. We will await developments with interest. There was interest in doubleface skins at £2 ex yard and fellmongers at £1.60 ex yard.



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