Australian hide prices have fallen, claims MLA
Australian hide prices fell in August and were more or less flat in September, according to Meat and Livestock Australia. Hide prices had reached the highest levels since the autumn of 2008 between mid-August and mid-July, but have dropped again in recent months.
According to the organisation, currency effects have played a part in this. The A$ is stronger against the US$, euro and Chinese renminbi compared with mid-April levels.
However, the main reason for the price decline is that there are fewer hides available domestically because of heavy rainfall, herd rebuilding and a positive seasonal outlook across the eastern states. Added to this, tanners have been holding off, waiting to see whether raw material prices would come down.
Medium-weight (180-220kg cwt) green cattle hides are averaging $23 per hide in NSW and $28 in the south, with most categories around 15% cheaper than the mid-April peak. Processed hides are 5% cheaper than in mid-April, with wet blue hides (23-27kg) averaging $62.
