April 13th
Leather and Hide Weekly
LHCA released its latest report, which summarizes key 2020 U.S. hide, skin and leather industry trends and data, and presents thoughts on the year ahead. The impact of shipping issues, new U.S. Administration policies and ongoing global marketing efforts are discussed, among other pertinent topics. Plus, LHCA is holding its Spring Board of Directors and Strategic Planning meeting this week. There is still time to register for tomorrow's Board Meeting session. All LHCA members are welcome to participate. More on these and other topics below.
Weekly Hides and Skins Stats
- Net sales of cured cattle hides reported for the period ending April 1, 2021, were 399,900 pieces and net sales of wet blues were 64,100 pieces. Reported shipments of cured hides were 367,900 and of wet blues were 119,800. China was the largest buyer of cured hides and Vietnam was the largest destination for wet blues. See more. For historical data, click here.
- U.S. Cattle Slaughter was 641,000 last week, an increase of 5.3 percent from the previous week. Total cattle slaughter in 2021 is 9,004,000 head, down 2 percent from the same period in 2020. See more.
- USDA AMS Major Packer Hide Price Report provided prices for six types of U.S. hides at six price points with a spread of $23 for branded southwest cows to $50 for butt branded steers. See more.
- The USDA price report is a snapshot of the market. For real time hide market prices, please consult our friends at Hidenet, The Jacobsen, The Maxfield Report, or The Sauer Report.
Industry Updates
- LHCA's spring meeting is off to a great start, with additional Committee meetings slated for today. LHCA members who have not already registered to attend tomorrow's Board of Directors and Strategic Planning Meeting can still do so at the link below. The meeting will be held virtually using the Cisco Webex platform. The meeting is restricted to LHCA members only. More information is available here.
- The U.S. hides and skins market experienced further price declines throughout 2020, and export values fell compared to 2019. The onset of the COVID-19 global pandemic injected unprecedented uncertainty into the U.S. cattle and beef markets in the spring of 2020 and exacerbated existing market challenges faced by the animal by-products industry. The consequences were particularly acute for the U.S. hide and leather industry, which was already contending with weaker global demand and declining prices. Although the expansion of the U.S. cattle herd has appeared to stall, slaughter is expected to remain relatively stable – though growing at a slightly slower pace – providing ample hides to the market in 2021. However, the U.S. industry will closely monitor the influence of macro-level factors, including the ongoing global response to COVID, the status of existing trade disputes, and the policies of the new U.S. Administration, on its ability to grow and compete in the year ahead. Read LHCA's full report analyzing the U.S. hide, skin and leather industry in 2020, along with industry projections for 2021, here.
- The Leather Research Laboratory at the University of Cincinnati is hiring a senior research associate, who will be responsible for coordinating research studies involving leather tanning (novel tanning agents/processes), assist in the root cause analysis of industry problems (generally cured hides & wet blue/wet white hides), help formulate specifications and recommend test protocols to address field complaints experienced by clients and assist with the creation and presentation of the educational content that the department offers. Applicants are required to have a Bachelor’s Degree in a relevant field and 3+ years tannery experience. We offer an attractive compensation package, including base salary and excellent benefits (e.g., retirement, medical/dental, tuition remission), and relocation assistance, if required. The University of Cincinnati, as a multi-national and culturally diverse university, is committed to providing an inclusive, equitable and diverse place of learning and employment. As part of a complete job application, you will be asked to include a Contribution to Diversity and Inclusion statement. For more information and to apply, click here.
- Africa Leather and Leather Products Institute, in conjunction with the Government of Ethiopia, announced that the 36th International Union of Leather Technologists and Chemists Societies Congress, and the 5th World Leather Congress, will be held jointly November 1-5, 20201 in Addis Ababa, Ethiopia. The events will be presented both in-person and online to provide an opportunity for global attendees, unable to travel due to COVID-19, to participate in the the meetings. More information is available here. Meanwhile, the All-African Leather Fair will take place December 3-6, 2021, in Addis Ababa, Ethiopia. Plus, the UK's Society of Leather Technologists and Chemists 2021 Conference will be held virtually April 24, 2021, and is free to attend. Registration details are available here.
Latest Updates from Real Leather. Stay Different.
The leather industry has made significant progress in recent years to create a transparent supply chain that should provide confidence to consumers, brands and retailers in the leather goods they purchase and sell. The industry has taken great strides to adopt more efficient, less resource-intensive production techniques, and to source raw materials that adhere to high quality standards. Interested in learning more about the leather industry's efforts to produce one of the world's most durable, sustainable and natural products? Check out our latest blog post here. Get the latest news from Real Leather. Stay Different. here. And, don't forget to:
Monthly Trade Data
U.S. hides and skins February 2021 export data is now available. Get a summary of the data here.
- Cured cattle hides exports rose 27 percent in volume, but declined 3 percent in value compared to 2020. Download the data here.
- Wet blue shipments decreased 16 percent in volume and 23 percent in value. Vietnam was the largest buyer by value, totaling more than $16.8 million.
- Pig skin exports decreased 41 percent in volume and 31 percent in value compared to 2020. Download the data here.
Other News
- President Joe Biden designated Federal Maritime Commission (FMC) Commissioner Daniel Maffei as FMC chairman, replacing Michael Khouri, who will continue to serve as a commissioner. Last fall, Maffei co-authored a letter to ocean carriers, warning them not to discriminate against U.S. exporters. Maffei also supported FMC's fact finding investigation and rule on detention and demurrage. Read more here. Separately, U.S. Transportation Secretary Pete Buttigieg pledged to help resolve the ongoing dispute between ocean carriers and U.S. exporters over container pricing and availability.
- The Office of the U.S. Trade Representative (USTR) last week released the 2021 National Trade Estimate (NTE) Report, the agency's annual summary of trade barriers U.S. exports face in foreign markets. Key barriers detailed in the report include import policies, such as tariffs, import licensing and customs barriers, technical barriers to trade and sanitary and phytosanitary measures. The report finds that import bans and high tariffs constitute some of the principal barriers impacting hides, skins and leather trade. The report is available here.
Leather News
Each week, we will share relevant leather news below. Some of the articles may cover our products, and the industry, unfavorably, but we still believe it is important to share the different ways in which leather is presented in the media. If you find articles that you would like to see included, please send them to mschumpp@meatinstitute.org.