What happened this week: The fight goes on. Tanners decided not to just surrender and defended their positions to stem the increasing threat of rising prices and today, when the smoke settled and the weapons were laid down, the results were seen. And everybody will claim victory. Tanners successfully kept the market at more or less unchanged levels and protected themselves against higher asking prices; and sellers will look at the sales made during the week and their comfortable position in combination with a low kill as a strong argument for their arguments in the near future. The week generated a fully satisfying round of sales again. Business remains focused on standard items such as medium and higher weight dairy cows and bull hides up to 40kgs. These grades have all become ‘global’ hides and with the present international price structure they can compete with their counterparts from other supplying regions, predominantly the USA.

As the US$ could not extend its rally and settled at a lower level for the moment some of the currency market influences were also softened. This only left a few hides - particularly the extra heavy or superior quality, expensive hides which still have a more regional outlet potential. With the progression of globalisation in finished leather manufacturing and the gain in technological knowledge and equipment by overseas tanners, it seems to be just a question of time before the last fortress of European tanners in the field of raw material supply will fall.

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