Dwindling supplies to Türkiye in the aftermath of FMD
Turkish producers and importers view with some alarm the aggressive purchases by China of Australian and New Zealand raw (and pickled) leather hides and skins. Due to their insularity, these two countries remain the few, if not the only, ones unaffected by foot and mouth disease; so leather buyers are now apparently flocking there. China has itself banned skins from entering the Chinese mainland if they originate in countries which have foot and mouth cases.
Türkiye’s Leather Producers’ Association president, Mr. Turgut Kosar, has visited Australia to underline the importance of double face purchases to Turkish tanners.
Information about China’s movements are, often, coming from other countries and, due to Türkiye’s buying power for double face (20 million pieces of leather in 2001), producers are hot on the trail of the supply situation. They are nervous and apprehensive about Chinese purchases of wool-on hides on a cash-with-order basis.
The extent of China’s purchases is speculative but Australian producers
estimate (roughly) that, since the end of December 2000, 85 percent of all lamb and sheepskins and 65 percent of lambskins have been purchased by Chinese buyers. Australia produces some 6-8 million lambskins annually. "Chinese customers browse the selection quite quickly, ascertain stocks and then return home," one such producer wrote to his Turkish buyer. "Within 24 hours, I have a Letter of Credit for cash-with-order on my desk," he added. Worryingly, several
Australian producers have indicated that Türkiye must brush up its financial image before dealings commence.
In conversations with Turkish machinery and chemical producers who have Chinese customers, World Leather magazine found them somewhat more cautious in their predictions. Ozdersan’s Atilla Ozbek, who has had steady dealings with China for many years, said sales of its fleshing machinery to China are continuing and orders are steady. This firm is also selling well to Australia and other countries. Chrome salt producer, Sisecam, which opened an office in Shanghai last year to tap the Chinese market, still finds that China is a difficult place to do business.
