David Peters: Raw material surplus has created a new market dynamic
31/07/2018
He warns that the current situation means that some low-grade hides are no longer economically viable as the cost of processing them is “far greater” than the value that can be achieved when selling them. This situation would have been “impossible to comprehend” just five years ago, according to Mr Peters.
“The residual burden of these low-grade hides must be absorbed by the remaining selections,” he says, which means packers must figure out what percentage of their production is unsellable and balance their costs on the remaining sellable hides.
Mr Peters does offer some positive news, however, suggesting that the fall in hide prices could prompt designers and brands to “rediscover” leather as a material. The lower prices also take away the key appeal of substitute synthetic materials, as they cease to be a more cost-effective alternative.
This ties in with another issue our regular contributor raises in his latest piece; why is it that man-made materials seem to be immune to criticism, especially in the face of strong evidence of their harmful impact on the environment?
To find out Mr Peters’ thoughts on this, read the full column, which can be accessed by subscribers for free on our blog page.
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