Perhaps everything had become a little bit too easy. In the good old days it was standard practice to ask if the client had a valid import licence before shipping goods out. With no problems for a long time, most shippers including ourselves, had become used to booking and shipping as soon as the schedule was approved with the client without double-checking on the day of shipping that there was an import licence. The lesson from last week is certainly to make sure that the import licence is in the hands of the official importer before the goods leave the port of shipment.

We had a two-fold market this week. The European fresh hide business offered sufficient excitement in spite of the uncertainty about the situation in China. Everything was on hold until Wednesday, because nobody wanted to take decisions before knowing how if hides from Germany would reach China. After the shipments were sorted out, the trade returned to the discussions about what kind of business can still be done. In Germany the biggest problem continues to be the abattoir prices. Abattoir prices for most categories, in particular cows, have been pushed too far and despite better prices and better business, they do not reflect present market levels.

We have had an intense dispute about the value of heavy bull hides for the automotive industry. There is a lot of political strategy involved and positions have drifted too far apart. Sales this week were limited to European buyers. Prices were stable or slightly firmer for males. Due to the firm levels in the US also, some trials of males were booked in Asia, but prices do not match European levels. However, covid-19 stops tanning in Europe again it might be a good idea to have an alternative in place.

The kill: Despite all the complaints, the kill in our region is good and normal for the time of year. Corona could shut abattoirs down and so one has to live from week to week.

What we expect: Next week the usual fight with the abattoirs will go on. It all depends on the levels. If prices are not adjusted to the global price structure and asking prices are too high, there will be little chance of sales. The time window until Christmas closes quickly and so some care is needed.

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