June 16th

Leather and Hide Weekly

The Leather and Hide Council of America (LHCA) continues to monitor developments related to the COVID-19 pandemic, and is available to support members navigating this rapidly evolving situation. Earlier today, LHCA announced that its popular and successful inaugural global student design competition will be held annually, thanks to strong international interest in the contest and support from partner leather organizations abroad. Plus, LHCA will hold its spring Board of Directors meeting this Wednesday, June 17, and non-Board members are welcome to participate as observers. Also, additional guidance is now available regarding the U.S.-Mexico-Canada Agreement, which will enter into force in two weeks. More on these and other topics below.

We hope you stay safe and healthy.

 

cows

 

Weekly Hides and Skins Stats 

  • Net sales of cured cattle hides reported for the period ending June 4 were 757,800 pieces and of wet blue were 135,200 pieces. Reported shipments of cured hides were 430,100 and of wet blue were 92,300. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more.  
  • U.S. Cattle Slaughter was 658,000 last week, up 3.5 percent from the previous week. Total cattle slaughter in 2020 is 13,971,000, 6.4 percent below 2019 levels. 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 $9 for Colorado branded steers to $24 for heavy native steers.  See more.

Industry Updates

  • LHCA confirmed that beginning September 2020, the popular 'Real Leather. Stay Different.' global student design competition will become an annual event open to eligible students at participating universities. The competition, which was launched earlier this year, aims to find the next generation of outstanding fashion and design students, and to promote the use of sustainably-sourced, natural leather. The competition, which awards prizes ranging from work placements with leading fashion brands including Mulberry, was coordinated by industry associations in China, Italy, Taiwan and the UK. More than 800 entries across three categories of apparel, footwear and fashion accessories were received from students at 25 leading fashion and design colleges and universities. Read LHCA's announcement here.  
  • The LHCA Spring Board of Directors meeting will take place via teleconference and webinar tomorrow, Wednesday, June 17, 2020, from 2 p.m. - 5 p.m. ET. LHCA members who are not on the Board of Directors, but are interested in participating as meeting observers, should contact Stephen Sothmann or Michael Schumpp to register.   
  • LHCA President Stephen Sothmann will present our ethical duty to use leather during the upcoming "Why Leather - The Genuine Facts" webinar, focused on leather's value to the automotive industry. The webinar will take place Thursday, June 25, from 8 a.m. to 9 a.m. ET. Click here to register to attend the webinar. 
  • The North American Meat Institute continues to share guidance documents and other resources for industry on its COVID-19 response webpage. The page includes the latest guidance from the Centers for Disease Control and Prevention (CDC) regarding face coverings, employee screening and positive test result protocol, among other pertinent resources. CDC and the Department of Labor issued guidance specific to the meat and poultry processing industry in order to facilitate ongoing operations and support the food supply, while also mitigating the risk of spreading COVID-19. The guidance is available here.  

 

cows

 

Other Trade News

  • The U.S.-Mexico-Canada Agreement (USMCA) is set to enter into force July 1, 2020. As LHCA receives clarification regarding USMCA's specific provisions and procedures, such as the question and answer below regarding claims for preferential tariff treatment and certification of origin, it will share guidance with members.
    • Question: From what I understand, the NAFTA certificate of origin will not be required under the USMCA. Is there a new process that must be followed or some kind of new process or documentation that you know of that will need to be filed in order to export to Canada and Mexico?
    • Answer: There will no longer be a formal certificate of origin requirement for USMCA preferential treatment. Instead, the exporter, importer or producer must make a certification that the traded goods meet the requirements for USMCA treatment as set out in the agreement text here. Rather than a prescribed form, the certifier can make this claim on a commercial invoice or other document (no specific format) provided the certifier meets the nine minimum data elements listed in Annex 5-A. Additional information will be published by U.S. Customs and Border Protection in advance of USMCA's entry into force.   
  • The Animal and Plant Health Inspection Service (APHIS) announced a protocol that will allow the use of U.S.-origin bovine ingredients and most imported ingredients in pet food exported to China. The U.S. and China signed the pet food protocol on April 13, and the certification requirements were finalized May 21. The protocol became effective yesterday, June 15, but there is a two-month transition period in place to ensure companies currently exporting pet foods can comply with the new requirements. The requirements will be posted here, and facilities must meet China's Ministry of Agriculture and Rural Affairs requirements for product registration.
  • The Pacific Maritime Association (PMA) has agreed to the International Longshore and Warehouse Union's request to schedule its June monthly eight-hour stop work meeting during the day shift on June 19 to allow ILWU members to participate in Juneteenth activities. Stop work meetings are permitted under the coastwide contract, and locals are required to notify PMA in advance. Terminal operators and shipping lines at West Coast ports have been notified of the change, and most terminal operators will reopen for the night shift that day. PMA emphasized that cargo handling at West Coast ports will not be disrupted. More here.

    

Monthly Drought Monitor - June 11, 2020

 

U.S. drought Map

A strong upper-level ridge developed over the Southwest at the beginning of June, and expanded east to the southern Great Plains. 7-day temperatures (June 2-8) averaged more than 10 degrees F above normal across much of the southern to central Great Plains until a strong cold front arrived on June 9. From June 6-8, a vigorous upper-level trough progressed east and resulted in varying amounts of rainfall and much cooler temperatures from the Pacific Northwest to the northern Rockies and northern Great Plains. Around the periphery of the upper-level ridge, mesoscale convective systems with severe thunderstorms and locally heavy rain (more than 2 inches) occurred from the Upper and Middle Mississippi Valley southeast to the mid-Atlantic. After spending multiple days stationary over southern Mexico, Tropical Storm Cristobal tracked north across the Gulf of Mexico and made landfall in southeast Louisiana on June 7. The heaviest rainfall occurred to the east of its landfall. 7-day precipitation amounts (ending 12Z June 9) exceeded 5 inches, with locally higher amounts from the Mississippi Gulf Coast east to the Florida Panhandle. A weak surface low remain located across the Gulf of Alaska at the beginning of June. The most widespread rainfall (more than 1 inch) occurred across southeast coastal Alaska, while scattered convection raised wildfire concerns over the interior of Alaska. Rainfall was suppressed across Hawaii this past week, while heavy rainfall occurred well west of Puerto Rico during the first week of June.     

Latest Updates from Real Leather. Stay Different.

westwood

 

World renowned fashion designer Vivienne Westwood has launched a new initiative that shuns the use of plastics and other non-recyclable materials and embraces real leather for its sustainable, natural properties. Check out her new project here. The Real Leather. Stay Different. Student Design Competition also continues to pick up steam globally, with contests in China, Taiwan, Italy and the UK. Get all your design competition news at chooserealleather.com. Plus, check out our video here showcasing the first round of competition in China.     

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.