It goes without saying that the market is not in a uniform position. The extra heavy weights, which are entirely focused on their handful European customers, have already taken a break and prices have been corrected moderately and quietly in recent weeks. The same applies for dairy cows which had to adjust due to the dwindling demand from Italy and the fall in the value of the $. This is not overly significant, but shows a short-term break in enthusiasm at the least. It confirmed that the upholstery business is facing the strongest headwinds yet again and, without the support from vegetable tanners—which was the additional supportive factor in the last quarter 2006—demand is not strong enough to drive the market of upholstery-related hides in Europe any further. The price factor can also be seen in the continuing shift into lower price raw materials reflected in the demand and price increases of hides in South America.

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