The price of pig hides in China has increased by over 20% in recent months and tanneries are now beginning to become concerned that orders will dry up as foreign buyers become discouraged by the inflated costs. Although, the industry itself is forecasting that prices will fall, tanners remain nervous.

Pig hides have risen since August and the latest market intelligence forecasts that the price will continue to rise due to the shortage of pig hides and the increasing price of pork.

Whilst, most tanneries are still operating at a 10% profit margin, passing the increased cost on to the buyers, some have reduced production or switched to sheep or cattle hides. However, certain tanneries are suffering the consequences, as they are tied up in contracts with overseas buyers that were settled earlier in the year at a fixed price.

 

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