What happened this week: This week had only few aspects in it. As far business and sales activity was concerned it could be called quiet. Some business could be concluded. Mainly males and ox/heifers which demonstrates, that the shoe upper business in Europe is somewhat better and is confirming the information we got already from several tanners over the past weeks. Upholstery tanners remained pretty quiet and the other large customers are still consuming their purchases made some weeks ago. Overseas buyers were almost absent. Some interest in low grades was seen and at least also price inquiries for dairy cows, what we take as a sign for interest and potential business in the coming weeks. With the firmer USD a bit of the price pressure has been lifted from our market and prices for many categories look even more attractive now. However, most of the sales were effected this week in Europe and countries like Spain were the most active players in the past days. Prices required still a bit of adjustment – if one was ready to sell – the lighter weight hides. On heavies it was still possible to

move material at steady money.  Impressive is the amount of hides offered out of the Eastern bloc. It seems, that many sellers still dispose of inventories from the summer and like often were not willing to accept the market reality until the very end. With the seasonal slaughter now also starting in this region, suppliers have to find homes for the material. With the reduced interest from their standard markets (Spain, Italy etc.) over the last weeks they are now searching for new homes. Talk of the week, however were the problems in the trades which ended in the notice, that a wetblue plant in Ireland is going to cease production, a Spanish tanner went into Chapter 11 and a German finishing plant is facing financial unrest. All a result of the trouble seen for some time and the structural changes so often talked about. We are afraid, that this might just only be the beginning. On the positive side however, we notice also a lot of tanneries who are enjoying a good order book and taking full advantage of the reduced raw material prices to widen their margins. So, its not bad for all, but there is no room for everyone in Europe anymore. It doesn’t need too much courage and prophecy to predict, that financial issues will be a dominating factor still for

some time. Banks and credit insurers will notice the general problems and if we see some more problems 2003 could be remembered as another year of crisis in the industrial history. Abattoir price weren’t fixed yet, but it seem that hopes for any significant adjustments have to be buried.  The kill: Steady now on the seasonal high levels. In our area not going up nor going down. The only positive are the slightly rising average weights which help a bit with the calculations. From what we can gather, will the kill last at least for some more weeks on the present levels. Rumours were heard, that another large German abattoir group has been sold to a foreign investor, but is still needs confirmation. What do we expect?: As boring as it is, we don’t expect big changes until a clear picture for the Asian demand emerges. As we said a week ago, there is still no sign for a rebound in the market and it seems, that prices will just sidestep for a while with fluctuations by the individual position of the buyer and the seller. The USD rate is a bit supporting the European market  without having the force to turn it. European tanners are almost covered for the rest of the year, except some spot demand here and there. New impulses need to be triggered by the Asian tanners in abt. 3-4 weeks.

Dairy cows

15/24,5 kg

22,5/23,5 kg

13/22 kg

20/21 kg

€ 1,75

Steady

25/29,5 kg

27,5/28,5 kg

22/27 kg

25/26 kg

€ 1,52

Steady

30/+      kg

33,5/35,5 kg

27/+   kg

29/31 kg

€ 1,30

Steady