Paul Batigne calls on farmers to help increase the supply of top-quality hides

31/05/2013
The French National Leather Council (Le Conseil National Du Cuir) has said that supply of premium-grade leather is limited because of a decline in the consumption of red meat in markets such as the European Union and North America. However, because demand for the highest-quality leather is strong, the organisation has said the the price of premium-grade leather has increased by about 30% since 2008, the organisation said.

In recent comments to broadcaster CNBC, the organisation’s president, Paul Batigne, suggested that this constraint in supply is one of the principal reasons why luxury brands, including Hermès, LVMH and Kering have begun to acquire control of tanneries.

“The biggest groups have adopted a strategy of integrating suppliers, in the same way as they have integrated production,” he said.

Mr Batigne went on to say that supplies of top-quality leather could increase by as much as 30% if more farmers applied best practice to the way they manage their cattle herds.

This comment won the support of Patrick Albaladejo, deputy chief executive of Hermès and the person responsible for strategic development at the luxury brand. He told CNBC: “Good quality calf skin depends on the breeding of the animal. If it is not raised in good conditions, in freedom and eating grass, it will not live a good life and the skin will not be of the quality required. Unfortunately, the quality of breeding is not necessarily going up these days.”