Foot and Mouth Disease Update - 26.03.01
Because of the fast-changing nature of the Foot and Mouth Disease (FMD) crisis, which is likely to worsen over the next six weeks, predicting its medium to long term impact on the leather trade is extremely difficult.
There is little doubt it has already caused shortages of both raw materials and increases in the prices of hides and skins to tanners across the globe.
The basic situation, as of today’s date, (26.03.01) is that 607 cases have been confirmed in the UK, where the large scale burning of carcasses has begun, four cases in the Netherlands, two in France and one in Ireland. Though there are no special restrictions on the trading of tanned hides between EU member states – and the trading of hides and skins is possible with the right documentation – major problems of being experienced because of the dire raw material supply situation.
The fact that all hides and skins are being burned along with the carcasses means many tanners are being forced to look elsewhere for their supplies of hides and skins, outside the EU. To alleviate the situation, COTANCE, the European Confederation of Tanners, has called for the hides and skins of animals that have been slaughtered as a precautionary measure to be reclaimed.
Speaking to leatherbiz.com today (Monday 26.03.01), COTANCE Secretary General, Gustavo Gonzalez-Quijano said: "Though we would never argue in favour of preserving hides from herds or flocks that have been diagnosed with FMD, the price tension that currently exists within the market would be greatly reduced if we were able to reclaim the hide and skins from healthy animals.
"This would especially make sense in the UK, where the vast majority of slaughters taking place are precautionary, and the potential pool of hides and skins for use by the leather trade is large. It would also allow the farmer to recoup at least some of the cost of animal while reducing the cost of disposal. This is particularly true of sheepskins, which are especially expensive to get rid of because they must be burned at high temperatures. Of course, any such programme of reclamation would have to be properly managed, but we do not feel it is beyond the bounds of the possibilities that are open to us."
In the continuing absence of such a scheme, Mr Gonzalez-Quijano urged the European leather trade to stand firm and look to the future. "There is no doubt that the situation is extremely serious, and it is especially galling that the latest problems arrived just as we were beginning to recover from the BSE crisis. However, things will improve. From July 1 onwards, we will start to see the arrival of hides produced as part of the EC’s anti-BSE programme -and in particular the commission’s purchase for destruction scheme that provides for the disposal of all cattle reaching 30 months of age. It should also be remembered that FMD epidemics have a finite lifespan and that we will start to see the situation turn after two months, as the various measures implemented within EC-member countries begin to take effect. Though things are bad now, and might even get worse in the coming weeks, it must be remembered that this is not a permanent situation. Things will eventually improve and we will return to normal."
The secretary general also urged price restraint within the hide supply sector. "This is a very difficult time for us all, and certainly won’t be helped by our suppliers’ seeking to use the crisis as a lever to increase their prices. We all have a duty to get through this together, but get through it we will."
