German Perspective - 08.10.19
08/10/2019
The show was once again a fascinating firework of beauty, elegance and fashion and another proof of what leather can be if it is treated and manufactured in a sophisticated and competent way. Although most people came to sell hides or leather – this is the purpose of the event after all - a lot of time was spent discussing the future of leather and the outlook for businesses along the supply chain. Seminars were held, opinions exchanged, visions presented, but there was little concrete progress. There is one common view: the industry has not yet discovered a common strategy for protecting the future of the use of this valuable by-product.
It is not easy to come to a general conclusion about the fair. Most clients and exhibitors we talked to complained about a reduced number of visitors and the declining volume of business. On the positive side, many were reporting very decent interest, even if there was still no sign of a real turnaround in leather’s fortunes (this cannot be a surprise considering the media attention of the past six months).
Hardly anyone, except possibly the luxury brands, has agreed on a clear strategy on how to deal with the present situation. You can stick to leather and try to handle the media issues or you can turn away from it and promote alternative materials, except that these may not be available yet in the volume and variety you need, plus, most of them involve using plastic.
We don’t know if we are correct, but we see a strong underlying trend for any kind of non-metal tanned leathers. Coming to the main concern which is the business in the volume of sales including the plans for the winter season. We found reasonably stable interest from the regular customers. They were not willing to guarantee full-size quantities for the coming six months, but overall they expect stable production. In general the seasonal rise of leather production can also be felt. This means that after being in the doldrums since spring we are returning to more normal activity again.
The main obstacle is still finding an appropriate quality-price ratio. Low grades are considered to have zero value and top-quality material is expected at average price levels. It’s a difficult equation. Despite all the concerns and problems, Lineapelle was not bad as far as sales were concerned. It was all very carefully selected, with new destinations, specific requirements and limited volumes, but adding all the numbers together, it was not one of the worst exhibitions in our history.
The majority of the interest came from shoe and other side leather tanners and even some sheepskin customers were back on the buyers’ list. Being able to do special selections helped sales. Prices were mostly steady and additional sales were possible here and there with a discount.
The kill: The kill continues to be on the low side for the season. There is sufficient cattle in the market, but slaughterhouses are complaining about insufficient sales. The weather is expected to get a lot colder, which should push farmers to get rid of animals and might boost sales through lower prices.
What we expect: Not a single problem has been solved, but the market is on its way to more balanced conditions. Don’t dream of higher prices, though.
| Type | Weight range | Avg. green weight | Salted weight | Avg. weight salted | Price per kg green weight | Trend |
| Ox/heifers | 15/24,5 kg | 22,0/23,5 kg | 13/22 kg | 20/21 kg | € 1,20 |
Stable |
| 25/29,5 kg | 27,5/28,5 kg | 22/27 kg | 25/26 kg | € 0,65 | Stable |
|
|
Dairy cows |
15/24,5 kg |
22,5/23,5 kg |
13/22 kg |
20/21 kg |
€ 0,65 |
Stable |
|
25/29,5 kg |
27,5/28,5 kg |
22/27 kg |
25/26 kg |
€ 0,50 |
Stable | |
|
30/+kg |
33,5/35,5 kg |
27/+kg |
29/31 kg |
€ 0,45 |
Stable | |
| Bulls | 25/29,5 kg | 27,5/28,5 kg | 22/ 27 kg | 25/26 kg | € 1,15 |
Pressure |
| 30/39,5 kg | 36,0/37,0 kg | 24/34 kg | 31/33 kg | € 1.15 |
Pressure |
|
| 40/+ kg | 45,0/48,0 kg | 34/+kg | 38/40 kg | € 1.05 |
Stable |
|
| Thirds | 15/+kg | 25,0/27,5 kg | 13/+kg | 24/26 kg | € 0,25 |
Stable |
| Thirds bulls | 30/+kg | 38,0/40,0 kg | 24/+kg | 33/36 kg | € 0,40 |
Weak |
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