May 5th
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. A new analysis by LHCA finds that U.S. cattle hide value has declined significantly in the wake of COVID-19, representing approximately 1% of a steer's total value -- likely the lowest value on record. On a more positive note, the Federal Maritime Commission last week published a Final Interpretive Rule issuing guidance regarding the reasonableness of detention and demurrage charges assessed by shipping lines and marine terminal operators. Plus, LHCA President Stephen Sothmann will speak about our ethical duty to use leather in a pair of upcoming webinars. 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 April 23 were 322,800 pieces and of wet blue were 127,300 pieces. Reported shipments of cured hides were 408,600 and of wet blue were 61,600. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more.
- U.S. Cattle Slaughter was 425,000 last week, down 8.6 percent from the previous week. Total cattle slaughter in 2020 is 10,564,000, 4.2 percent below 2019 levels. See more.
- USDA AMS Major Packer Hide Price Report provided prices for eight types of U.S. hides at nine price points with a spread of $1 for branded cows to $23 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
- A new analysis from LHCA finds that U.S. cattle hide value has declined significantly in the wake of COVID-19, representing approximately 1% of a steer's total value -- perhaps the lowest hide value as a proportion of total animal value on record. Traditionally, hides, on average, contribute 6 to 8% of the total value of U.S. beef cattle. The analysis also points to a precipitous decline in hide value as a percentage of a steer's total by-product value. The hide's once-dominant share of a steer's total by-product value has fallen dramatically from 50% a few years ago to near 20% in the latter half of April 2020. The analysis 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.
- LHCA is collecting stories from members that are taking steps to make a difference in response to COVID-19 -- companies that are producing face masks, for example, or taking other actions, big or small, in the global fight against the virus. We'll share your stories in upcoming Real Leather. Stay Different. materials. To be featured, send a description of your company's efforts to Michael Schumpp.
- LHCA President Stephen Sothmann will provide an overview of the U.S. meat industry in a webinar sponsored by Brazilian Leather. The webinar will take place this Thursday, May 7, at 4 p.m. ET. Register here.
- LHCA President Stephen Sothmann will present during the upcoming "Understanding raw materials for the tanning industry" webinar, set to take place May 13 at 9 a.m. ET. The webinar is organized by ILM in association with theSauerReport, and is sponsored by LHCA. Click here to register for the free webinar.
- LHCA President Stephen Sothmann will present "Our Ethical Duty to Upcycle Cattle Hides from Meat Production," as part of APLF's webinar series. The presentation, which will be moderated by Hidenet's Vera Dordick, will take place June 2, 2020, at 7 a.m. ET (7 p.m. HKT). To register for the free webinar, click here.
Other Trade News
- On April 28, the Federal Maritime Commission (FMC) published a Final Interpretive Rule issuing guidance regarding the reasonableness of detention and demurrage charges assessed by shipping lines and marine terminal operators under the Shipping Act. The rule provides that carriers and terminals should not charge detention, demurrage, or per diem under the law when it is not possible for the shipper or trucker to pick up or return a container within the 'free time' window. Examples of this would include when a terminal is shut due to weather or labor issues, when no appointments are available, when the terminal or carrier won't take empties, when containers are still on ships or in stacks, and when the container is held for government inspection, among other reasons. The rule applies to both import and export shipments. Challenges exporters face, including rolled bookings due to vessel and schedule changes and ocean carrier changes to container return cutoff dates, could be considered within the scope of the rule. The rule's provision encouraging notice of cargo availability will also serve to improve efficiencies at ports and throughout the entire U.S. freight delivery system. Furthermore, the rule's language promoting transparent and clearly defined demurrage and detention terminology would provide consistency and clarity to importers and exporters alike. This memo from the Meat Import Council of America summarizes the rule's main provisions.
Latest Updates from Real Leather. Stay Different.
Looking for something light but durable enough to withstand the unpredictable spring weather? Check out these five knockout leather jackets to consider adding to your wardrobe this season. The Real Leather. Stay Different. Global Student Design Competition also continues to heat up in China and Taiwan. 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.