What happened this week: Activity was reduced during the week. As already normal during the abattoir purchasing weeks retreat buyers and sellers from the market and wait where the abattoir prices are heading. Most of the players need and hope for further reductions which are desperately needed to compensate for the erosion of prices in over the past weeks. Sales were consequently limited, but the pattern of the remaining demand was pretty clear. On the present levels light and medium weight ox/heifers as well as bulls find strong attraction from the traditional buyers in Italy and Spain and bids for this type of product were more than normal. So, sales were concluded when hides were available. Price pressure faded and at the end no further reductions were needed and buyers paid asking levels. Also kips and heavy weight calf enjoyed interest. Quite the opposite again on lighter weight calf and kips and the range between 2-14 kgs. Little or no interest and if any at very low prices on a take it, or leave it basis. In four weeks from now we are having the next Bologna

fair and it will be interesting to see if designers and tanners are continuing to ignore these hides which could be such an economical alternative, if the leather types could be sold. Interest for dairy cows in general and Asian interest in particular was almost non existent and only some spot deals in Italy could be concluded. Having said this, we have to repeat, that most productions are already cleaned up and neither sellers, but also not buyers need to take any action at present and only in the next two weeks new decisions have to be taken. The further progress of the war and also the further development of the SARS in Asia will also be momentary influencing factors of the business. Interesting was also the fact, that we have seen this week the first, but still scattered interest  for sheep and lamb from Turkey what might be an indicator, that people closer to the war are starting to prepare for the time after the war or at for normalizing conditions. Remaining general economical news were, however not very promising and in particular in Germany things do not look particularly positive for the immediate future. For moreinsight into the global

situation in the leather business we are missing the APLF which has been always a good source for information about production in the manufacturing hub – Asia – is missing. Also other fair in Asia seem now to be endangered by SARS and could fail to deliver more insight. The kill: Completely steady, but the worrying factor for us are the rapidly falling avg. weights, what is coming for us presently much sharper and more pronounced as we normally would have expected for this time of the year . We are concerned about the supply of males in April/May. What do we expect?  Also for the coming week we do not expect any surprises or changes and we still fail to find a reason why the established plateau of prices should change very much into either direction. Males and heifers are solidly cushioned by demand and the present prices levels and only dairy cows could loose some ground if demand from Asia does not surprise positively. However, with sellers being comfortably sold no extensive market action can be expected unless there are no unforeseen news which would inspire buyers or sellers to take completely new positions.