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The Leather Pipeline: hide waste increasing

The latest issue of our Leatherbiz Weekly electronic newsletter carries a new market intelligence report under our exclusive Leather Pipeline series.

It confirms that the rate at which raw material is going to waste now is increasing. The report points out the irony of this because the leather industry has always complained about raw material prices being too high, arguing that lowering raw material prices would be the only thing required to increase sales of leather again. 

Raw material prices are now very low, the report points out, but the demand for leather remains too weak to bring supply and demand back into balance.

In the medium term, the report speculates that the rise of non-meat alternative foods could affect the volume of cattle being slaughtered and the number of hides coming into the pipeline. “Moderately falling supply could help to rebalance the market,” it says.

Subscribers can read the full report in our Market Info section.

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