An overview of Germany’s leather industry for 2002
According to a recent report released by the German Leather Federation (VDL), the country’s leather industry increased its total turnover 5.1% to Eur632 million ($739.6 million) during 2002.
During the period, leather exports rose 5.8% and 47% of all production went for export. The employment figure in
The German consumer market was weak during 2002 and sales of footwear and leathergoods declined 10 to 15%. The VDL cites the introduction of the Euro and lower disposable incomes caused by increased social costs and taxes and a rising unemployment rate for the overall decline.
German tanners concentrated on the high-end outdoor, childrens, luxury, specialised footwear and leather goods markets during the year due to increased production costs, particularly in the environmental field. Over the past few years the cost of raw cow hides and calf skins has risen making it difficult for leather manufacturers to stay in the market and maintain cost covering prices.
Tanners also focused production on bovine and calf upper leathers, vegetable leathers for soles, bonded leather, raw hides and wet blue/crust, as well as leathergoods, saddlery and suede leathers for uppers, linings and bags.
The VDL stated that it expects hide supplies to be in short supply over the next three years and said that prices will be stable to firm due to falling red meat consumption and declining EU farming subsidies.
For 2003, the projected growth rate of the German economy has been cut to 0.5% and it is anticipated that with the rise of the Euro against the dollar, exports will become increasingly difficult.
Production of bovine leather is expected to increase to 14 million square metres while the production of calf leather for the shoes and leathergoods sector is expected to struggle due to high price levels and falling demands.
The German Leather Federation released its overview of the leather industry to coincide with the Lineapelle Leather Fair, held
