July 6, 2021

Leather and Hide Weekly

 

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July has already been a busy month on the trade front, as efforts continue to address shipping issues at U.S. ports and as the Office of the U.S. Trade Representative engages in dialogues with key trading partners in North America, Asia and Europe. LHCA continues to advocate on behalf of the U.S. hides, skin and leather industry in these and other pertinent policy discussions. Also, an upcoming webinar will address how increasing transparency and improving traceability in the global leather and textile industry impacts sustainability. Plus, the latest hides, skins and leather trade data through May 2021 is now available, showing considerable growth in value and volume for key industry exports compared to 2020. More on these and other topics below. Please note: The next Leather and Hide Weekly will be sent on Wednesday, July 14.

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Weekly Hides and Skins Stats 

  • Net sales of cured cattle hides reported for the period ending June 24, 2021, were 964,300 pieces and net sales of wet blue were 114,300 pieces. Reported shipments of cured hides were 351,900 and of wet blue were 154,800. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more. For historical data, click here. 
  • U.S. Cattle Slaughter was 623,000 last week, a decrease of 5.7 percent from the previous week. Total cattle slaughter in 2021 is 16,706,000 head, up 5.5 percent from the same period in 2020. See more.
  • USDA AMS Major Packer Hide Price Report provided prices for one type of hide at one price point -- $57 for butt branded steers. See more.

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Industry Updates

  • The National GS1 Traceability Advisory Group is hosting a virtual open industry briefing session titled, "Global Traceability and Sustainability for Textiles and Leather." The webinar, which will be held July 20, 2021, will discuss how improving transparency and traceability has become a priority for the textile and leather industries to manage value chains more effectively, identify and address labor and human rights violations, combat counterfeits, reduce environmental impacts and handle reputational risks, while embracing more sustainable production and consumption. Maria Teresa Pisani from the United Nations Economic Commission for Europe will lead the discussion, along with key Australian textile and leather industry representatives. Registration is available here.
  • The Sustainable Leather Foundation (SLF) will host two in-person workshops July 12 (Santa Croce) and 15 (Arzignano) in Italy that will introduce attendees to ways the organization is supporting the global leather industry. Workshop participants will learn about SLF's Transparency Dashboard, Audit Standard and Collaboration Hubs. More information, including registration details, is available here.  

Latest Updates from Real Leather. Stay Different.

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Looking for inspiration to freshen up your summer look? In a recent blog post, renowned stylist Mike Adler shares some of his favorite leather accessories that perfectly complement your favorite summer outfit. Whether you're grabbing a nice lunch with friends, scaling mountains or relaxing on the beach, these looks are sure to turn heads. Get the latest news from Real Leather. Stay Different. here. And, don't forget to:

 

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Monthly Trade Data

U.S. hides and skins May 2021 export data is now available. Get a summary of the data here.

  • Cured cattle hides exports rose 70 percent in volume and 48 percent in value compared to 2020. Download the data here.
  • Wet blue shipments increased 2o percent in volume and 18 percent in value. China/Hong Kong was the largest buyer by value, totaling more than $47 million.
  • Pig skin exports decreased 12 percent in volume and 4 percent in value compared to 2020. Download the data here.

 

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Other News

  • LHCA joined a coalition of more than 170 organizations in sending a letter to House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy expressing strong support for key elements of the Trade Act of 2021 that were included in the U.S. Innovation and Competition Act recently passed by the Senate. "As companies in the U.S. continue to recover from the global pandemic, we continue to call upon the Administration to resolve the ongoing trade war with China," the coalition wrote in the letter. "To date, U.S. Customs and Border Protection has collected over $92 billion in tariffs from U.S. companies who import products from China. These taxes increase the cost of doing business in the United States and risk exacerbating increasing concerns regarding inflation." Read the letter here.
  • U.S. Customs and Border Protection (CBP), Department of Homeland Security and Department of Treasury published an interim final rule amending the CBP regulations covering preferential tariff treatment and related customs provisions in the U.S.-Mexico-Canada Agreement (USMCA). This rule implements USMCA provisions related to general definitions, confidentiality, import requirements, export requirements, post-importation duty refund claims, drawback and duty-deferral programs, general verifications and determinations of origin, commercial samples and penalties, among other areas. These implementing regulations should not substantially impact LHCA members conducting business in Canada or Mexico. 
  • The U.S. and Taiwan held their 11th Trade and Investment Agreement Framework (TIFA) Council meeting. During the meeting, U.S. officials emphasized the importance of the U.S.-Taiwan trade and investment relationship, and expressed a desire for stronger and more consistent engagement moving forward. The two sides also agreed to convene meetings of several TIFA working groups, including an Agriculture Working Group and Technical Barriers to Trade Working Group. The readout of the meeting is available here. Taiwan is a top 10 market for U.S. hides, skins and leather industry exports. 

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.