At the peak of the market back in 2014, best quality large Victorian hides were worth up to $110 each. Good quality, machine-pulled large hides (from cattle 350kg carcase weight or heavier) in Victoria last month averaged just over $20/hide, while the same category in NSW averaged $17 in June, and just under $10/hide in Queensland. High levels of hide production out of North and South America.Īustralian hide prices in June fell a further 10-20 percent for all categories on the month prior, and are now 50-90 percent below where they sat in June last year (see MLA graph below).Increased environmental regulation in China, which has forced thousands of small ‘backyard’ tanneries to close.Large end-customers like footwear manufacturer Nike, which plans to remove leather altogether from its products, replaced by synthetic materials made from recycled plastics.A slowdown in luxury car manufacture, with a 10-15pc reduction in the past 12 months. The development of much more ‘convincing’ synthetic leather products.Global economic and trade issues, including the US/China tariff war.Hide values in Australia have now slipped well below their previous lowest demand-point, seen during the 2007 Global Financial Crisis, trade sources said on Friday.īeef Central filed this report on the poor state of the hides market and the reasons behind it last year, but prices and outlook have continued to deteriorate since then.īecause of the popularity of leather in the fashion world (handbags, shoes and accessories) the luxury motor vehicle trade (leather seats) and the furniture market, the state of the leather market is often seen as a litmus test for the world economy.Ī number of factors are impacting values: THE global market for cattle hides continues to plummet to new depths, driven by a range of powerful supply and demand factors – the latest of which is the trade standoff between the US and China.
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