The market leader for over 150 years
According to Les Echos , the French news source controlled by LVMH group - the lockdown has led to a huge surplus of hides. About 3 million are in stock now as despite the pandemic people were still eating meat and slaughterhouses were still working , even if at slower pace. Demand for hides is weak and there is a massive export market (about 50% production is exported normally) to Italy, China and Spain. As President of CNC Frank Boehly comments “ sales to these countries dropped 30-35% January -April, all while national tanneries were revising order quantities”.
Storage is now causing a problem as there is not enough demand to get through stock quickly, which means , with no refrigerated space available to hold the hides, salt might have to be used. However this can cause defects and would then negate the hides being used by the fashion industry.
A request has been made to the government to build refrigerated warehouses, but this would still take 6 months even if approved.
