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End customers are demanding transparency and traceability

For a variety of reasons, the leather industry has long resisted the introduction of new technologies that would significantly improve transparency and traceability throughout its supply chain, from meat processors all the way to tanneries selling finished goods and the end customer. 

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Continuing export demand for U.S. wet-salted hides

Cattle and calves on feed for the slaughter market in the U.S. for feedlots with capacity of 1,000 or more head totalled 11 million head on May 1, 2017. Up 2% compared with May 1, 2016. U.S. processors are shipping more salted hides and less tanned material according to the latest data. 

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Hide business comes under pressure

The hide business came under pressure in late January and February due to a combination of falling selling prices and rising green prices. The falling sales prices were due to the upcoming Chinese New Year shut down combined with US dollar weakness after a recent strong run. In general, heavier hides were traded at $5 less per hide. Demand from Italy has remained weak and at lower prices so the only show in town has been effectively the Chinese.

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