New Zealand: Skin prices fall again in November
The ANZ New Zealand Commodity Price Index has shown skin prices falling in November for the third consecutive month. Skins again showed the largest decline among New Zealand’s export commodity prices, registering a 14.3% fall. The latest dip comes after prices reached a peak in August and represents a shift from a two-year trend of steady price increases since the historic lows of 1999.
According to the ANZ report, high levels of stocks have been built up in this period over the whole leather chain from tanners to retailers, leaving the sector currently at a virtual standstill. Asia now holds large stocks of finished leather. Another factor is the weakening of the US market over the past 7-8 months – a problem exacerbated by the terrorist attacks of September 11. The prospects for cattle hides are better than lamb and sheep pelts as tehy have a greater range of end uses, including shoes, bags and upholstery.
For other commodities, the ANZ report blamed protectionist policies by the US, Japan and European Union (EU). For example, the move by the EU to increase export subsidies on skimmed milkpowder, whole milkpowder and butter meant that export prices in all three suffered significant falls in November, while lamb and beef exports proved more robust.
