Big hide suppliers can afford to wait
24/06/2014
“Suppliers today are trying to meet budgets, price targets and long-term revenue stability,” the report says. “To achieve this they have become involved in added-value chains.”
As a result, these large suppliers of meat have decided not to become too affected by the decline in raw material demands from tanners in the past quarter. From their long-term perspective raw material demand will see temporary declines from time to time, but in the long run it will always stabilise.
Raw material and leather demand will not decline, even if production and raw material demands are relocated, the Market Intelligence report concludes. The big suppliers are waiting for the low season to pass and for tanners to return to the raw material market when they have to replenish their inventories to meet consumer product demand. They are convinced that leather can be sold at the price levels that they consider to be fair and have put into their budgets.
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