What happened this week: Our last weeks idea, that this week would be quiet and relaxing proved to be entirely wrong. Sales were active and busy throughout the week and activity continued until the very last moment on Friday. Apart from the regular and program businesses which needed to be still concluded this week, we had plenty of inquiry and sales predominantly for low grade materials. Also interest and inquiry for dairy cows from Asia was seen, but due to the weak USD and the general market uncertainty we decided to pass and to postpone most of the interest into January. Not really a great risk from all what one knows today as the market does not seem to be very vulnerable for the time being. It seems, that it does not require too much wisdom to expect the reopening of the market early 2003 on similar levels than today. About the leather business you get plenty of different opinions. While many consider the demand for leather shoes worldwide

to be stagnant or slow, there is a lot of information, that things are globally still reasonable. Nike’s recent results and order book for the first quarter 2003  were not bad at all, German newspapers reported a growth of shoe sales in the CIS of more than 20 % for 2002 and expectations for similar figures in 2003. With the Asian countries being as well back on the growth track and American and UK consumers seemingly immune against economical risks one can not be entirely pessimistic about 2003. Only the unresolved problem with Iraq could change matters completely. That consumer demand needs further stimulation by lower prices has to be accepted and reflects also in the price pressure we have seen recently and the strong demand for more economical hides. Some people even mention, that the top quality, luxury end has finally determined price levels - at least of their components – as a factor to be finally considered. So, at least for some time,

avg. price levels for leather will remain under pressure. If, however the intension to stimulate demand will be successful, we might eventually end again in the classical contradiction of our trade. Raw material supply is not sufficient and the margin situation is getting even worse. The kill: Finally the kill started to ease and numbers declined throughout the week. Next week will only see sporadic slaughter and the total number for the next two coming weeks will be very small. We are curious to see how the numbers are going to develop from week 02/03 onwards. What do we expect? No changes for the coming weeks. May we take this opportunity to wish all our friends and regular readers a Merry Christmas and a

  very, Happy, Healthy, and

     Prosperous New Year

2003       !