Looking at the development in recent weeks it seems to us that we have created ‘market islands in the sea’ and there is now less equality than ever before for groups of European raw material producers. For example, it is clear that the privileged hides for cutting and vegetable use are taken predominantly form France. These have gained tremendous momentum, dragging a number of potential substitutes with them, which has propelled levels above their traditional outlets. As another example, some standard dairy cows that would normally end up in the upholstery tanners have found homes at price levels their regular buyers cannot afford. There are plenty more examples and this has managed to destroy a lot of the ‘market order’. This happens once in a while but it is hard to believe that it could actually become a permanent problem. It is also fairly obvious that non-regular players have pushed the market in some categories by supplying a customer base which would not otherwise have been supplied by standard suppliers at this point in time, mainly for financial reasons.

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