Hide shortages `exaggerated` - Italian Tanners` Council
The president of the Italian Tanners Association UNIC (Unione Nazionale Industria Conciaria), Giuseppe Walter Peretti, has written to all 15,000 clients of the Association to clarify its standpoint on the present hide shortage situation.
In the letter, Mr Peretti states that the situation is ‘under control’ and that the disease-related problems currently affecting European hide supplies should only reduce the world’s supply of hides by 1% to 2% between now and 2004.
"The concerns for a heavy shortage of hides are exaggerated," says the president. "Though foot and mouth disease will have a severe impact in the short term, it is an endemic disease. Brazil, Argentina and Hong Kong all had outbreaks last year and it usually only takes two months for things to get back to normal.
"According to our analysis, the T-bone steak is bound to return to favour. We estimate that beef sales will drop by a maximum of 10% during 2001, before making a full recover in the following months. In fact, this is what happened in the United Kingdom where, after the BSE crisis of 1995-96, levels of demand gradually returned to normal.
"63% of our members’ hide supplies, including wet-blue and semi-finished leather, have always been sourced from non-EU countries. Now, that share is increasing all the time."
The main problem concerns price. The fact that the tanning industry sources from a relatively small number of markets means that price distortions can quickly set in."
