This week: It is probably fair to say that all expectations of the Lineapelle exhibition in Milan (September 23-25) were met. The leather industry in Italy remains the heart and brain of the global industry; most others are, at best, the arms and legs.

That is why we hope the Lineapelle exhibition will continue for a long time to come, because where else could all parts of the supply chain be brought together to give a concise overview of the situation in the leather industry?

What could be taken away from Milan? There is no need to talk about the material any more. Everything has already been said about leather, and all the different production methods, articles and qualities have been known for a long time. If you were looking for something new, and there were a few things in leather for shoes, clothing and, of course, accessories, you had to look very closely. However, this also requires a certain level of expertise and experience on the part of buyers, and this is no longer so readily available in purchasing departments.

The situation in the industry can actually be described relatively quickly. European tanners are suffering greatly from the continued exodus of their customers, from political uncertainties, changes in consumer behaviour and, of course, the fact that leather as a material has simply been unable to defend its own position. Anyone who needed further proof of this only had to look at the now remarkable number of exhibitors offering leather substitutes in the broader sense.

What are the most important findings for raw material suppliers? Certainly the large number of problems in large-scale industrial production for the automotive and furniture industries. The volume demand owing to the weak order situation will not improve in the coming months, which will undoubtedly affect raw materials.

Smaller, more agile and somewhat specialised manufacturers are also complaining about lower order books and the pressure to produce faster and more flexibly, but overall the situation there is not yet so tense. The situation is much more relaxed for niche manufacturers and for the high-end luxury segment. However, one thing should be clear to everyone after visiting the trade fair: the leather industry in Europe is at a crossroads.

Despite the importance of the trade fair in Milan, the overseas markets must not be forgotten. This is certainly good news, because even if the prices are not a cause for enthusiasm, buyer activity in Asia, and in China in particular, was quite satisfactory.

Although the focus in China is always on low-priced goods, there was at least sufficient demand for these if one accepted the bidding prices, making it possible to sell the quantities one wanted. However, price differences in Asia are no longer based on the “quality” of the hide, but only on its weight, which continues to suggest that it is more about the split than the hide and the leather.

The kill: Slaughter remains relatively subdued. Although we are already at the end of September, the weather was still very summery until last weekend. The meat industry reports good demand, but the numbers are not really picking up yet, which is probably due to reduced supply from farmers at the moment. Almost every large slaughterhouse reports difficulties in actually achieving the planned production volumes each week. Nevertheless, it is likely that postponed is not cancelled, and it is therefore only a matter of weeks before slaughter numbers increase.

What we expect: Everyone will have to take a closer look at pricing for October at slaughterhouses again. The first step will be to correct the nonsense of the past few months and find a serious reflection of the market situation for prices at slaughterhouses. It would be wise to take the risks of the coming months into account at an early stage. However, risk assessment is not a particular core competence in our industry. While the market for female livestock has found a reasonably stable footing, the discovery phase for male livestock will probably take a few more weeks.

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