June 9th
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. The latest monthly trade data is now available, showing continued declines in U.S. hides and skins exports through April 2020, as supply chains continued to contend with COVID-19-related disruptions. Plus, LHCA will now hold its spring Board of Directors meeting on June 17 and non-Board members are welcome to participate as observers. More on these and other topics below.
We hope you stay safe and healthy.
Weekly Hides and Skins Stats
- Net sales of cured cattle hides reported for the period ending May 28 were 392,700 pieces and of wet blue were 63,100 pieces. Reported shipments of cured hides were 414,900 and of wet blue were 64,900. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more.
- U.S. Cattle Slaughter was 636,000 last week, up 21.4 percent from the previous week. Total cattle slaughter in 2020 is 13,309,000, 6.7 percent below 2019 levels. See more.
- USDA AMS Major Packer Hide Price Report provided prices for six types of U.S. hides at 10 price points with a spread of $11 for branded steers to $24 for heavy native 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
- The LHCA Spring Board of Directors meeting will take place via teleconference and webinar Wednesday, June 17, 2020, from 2 p.m. - 5 p.m. ET. LHCA staff are currently working to finalize an agenda for the meeting. 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.
- For the first time in the show's history, the ANPIC spring exhibition will be held digitally, June 11-12, 2020, from 10 a.m. to 4:00 p.m. CT each day. The digital platform facilitates business by promoting direct contact between buyers and suppliers. More than 170 companies have registered to participate. More information is available here.
- 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.
Other Trade News
- In global trade news, Vietnam's National Assembly approved the European Union-Vietnam Free Trade Agreement, paving the way for it to enter into force 30 days after mutual notification procedures are completed -- likely mid-July. Upon implementation of the agreement, EU tariffs on 85% of Vietnamese imports will be eliminated, and the EU will gradually cut its remaining tariffs on imports from Vietnam over the next seven years. Likewise, Vietnam will lift tariffs on 49% of EU imports immediately and will phase out the remaining duties over the next 10 years. Footwear and other leather goods imports will receive tariff relief. More here on the agreement.
- The second round of bilateral trade talks between the U.S. and the United Kingdom is expected to begin June 15. Negotiators held the first round of intensive talks in May. U.S. lawmakers are calling on the Trump Administration to secure comprehensive commitments for agricultural exports.
- U.S. trade plummeted in April, largely due to supply chain disruptions stemming from the COVID-19 pandemic. U.S. exports to Canada and Mexico fell significantly, though China remained a bright spot, despite concerns that President Trump was considering withdrawing the U.S. from its phase one trade agreement with China -- those public pronouncements have subsided in recent weeks, as U.S. officials now affirm that China is working to meet its purchasing commitments in the agreement. Read more here about the current trade climate.
Monthly Trade Data
U.S. hides and skins April 2020 export data is now available. Get a summary of the data here.
- Cured cattle hides exports fell 19 percent in volume and declined 27 percent in value compared to 2019. Download the data here.
- Wet blue shipments decreased 14 percent in both volume and value. Vietnam was the largest buyer by value, totaling more than $38.7 million.
- Pigskin exports increased 3 percent in volume and 6 percent in value compared to 2019. Download the data here.
Latest Updates from Real Leather. Stay Different.
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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.