German Perspective - 24.9.19
24/09/2019
Environmental activists continue to gain attention [with the recent climate strikes], hoping to persuade politicians and managers to enact change. While the good intentions must be applauded it has created a situation where people and companies are falling over each other to be on the front line.
Everybody has become environmentally conscious and almost every day there are commitments published and products launched featuring beautiful new labels showing how responsible the company is. But many cannot deliver on their promises.
For the leather industry, it is getting increasingly difficult to deal with the subject. On one side, the campaigners have used mainstream media to deliver the message that the evil they see in the beef industry can be transferred to leather. On the other side, the leather industry has not been able to successfully convey to brands that leather is one of the most sustainable materials humans dispose of. All in all, a pretty miserable combination.
At the same time, we should not dismiss the noise a minority is making. With all the discussion about climate change, there is no reason to be defensive and apologetic about hides and skins and the production of leather. The consumer should instead apologise for the excessive use of plastic and the lack of interest to extend the lifecycle of many consumer products.
One has to recognise that the demand for the niche, specialty and high-end materials in all sectors from garment to shoe and from upholstery to accessories continues to be positive and untouched by the general morass. The problem is that manufacturing and environmental issues are sometimes used as an excuse to justify the more profitable use of artificial materials.
Business has continued this week in the same pattern it has for months. High-quality tanners are continuing to operate, and demand for niche leathers even seems to be growing.
Sales this week were not easy. Asian tanners wanted relatively quick shipments and continue to be aggressive on pricing. We have not been able to close the gap in all instances and were not able to meet the prompt shipping requests, which are somewhat surprising.
Cow hides and heifers continue to remain in the limelight. If they are as heavy as possible and as good as one can get, then there is enough interest to clear production. All hides have to be moved and consequently only package deals were interesting and some were concluded.
Prices were on the weak side of steady but pretty much in the small range they have been in since the summer.
The kill: The kill is rising according to the seasonal patterns and the weights remain on the high side. Females are dominating.
What we expect: We still cannot see a trigger for change. Leather demand is not strong enough for a smooth clearance of the entire production. In the coming weeks, the final decisions for the winter season will be taken and they will set the pace for the coming three to four months. Let’s hope for the best.
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