April 28th
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. LHCA this week joined more than 300 organizations requesting that the Trump Administration delay duty payments for imports to the U.S. to ease the economic impact of COVID-19. Moreover, the Office of the U.S. Trade Representative on Friday informed Congress that the U.S.-Mexico-Canada Agreement will enter into force July 1, 2020. 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 16 were 715,500 pieces and of wet blue were 56,900 pieces. Reported shipments of cured hides were 358,800 and of wet blue were 63,900. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more.
- U.S. Cattle Slaughter was 469,000 last week, down 6.6 percent from the previous week. Total cattle slaughter in 2020 is 10,159,000, 1.9 percent below 2019 levels. See more.
- USDA AMS Major Packer Hide Price Report provided prices for nine types of U.S. hides at 10 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
- U.S. Ambassador to China Terry Branstad underscored the importance of the U.S. hide, skin and leather industry's partnerships in China in a video shared on the Real Leather. Stay Different. WeChat account.
- LHCA President Stephen Sothmann issued a statement on contract sanctity following a recent increase in the cancellation and renegotiation of valid contracts due to the invocation of "force majeure" in response to the COVID-19 crisis. Sothmann, in the statement, called out the erroneous use of "force majeure" in many of these instances. Read the statement 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 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.
- LHCA extends our deepest condolences to the family, friends and colleagues of Charles Wolff, who passed away this weekend at the age of 86. Charles was president of A.F. Gallun and Sons Tannery in Milwaukee, WI and dedicated much of his life to the leather industry. His obituary is here. A memorial service will be planned once COVID-19 related stay-at-home restrictions ease.
Other Trade News
- LHCA signed a coalition letter requesting that President Donald Trump build upon his Administration's recent decision to delay duty payments on certain imports to the U.S. in March and April. Specifically, the organizations encourage the President to extend the duty deferral program to cover imports in May and June. The organizations also urge the President to expand the program to postpone the due dates for all duties and fees, including imports subject to Section 232, Section 301 and other tariffs. Read the letter here.
- The U.S.-Mexico-Canada Agreement (USMCA) is expected to enter into force July 1, 2020, after the U.S. became the third country to notify the other Parties that it had completed its domestic procedures to implement the agreement, marking the final step necessary before the USCMA can take effect. More here.
Monthly Trade Data
- Monthly Livestock Slaughter Report is now available. March 2020 cattle slaughter totaled 2.92 million head, up 10 percent from March 2019. Get a summary of the data here.
- Cattle and calves on feed for the slaughter market as of April 1, 2020, totaled 11.3 million head. The inventory was five percent below April 1, 2019. Read the report here.
Cattle on Feed - As of April 1, 2020
Latest Updates from Real Leather. Stay Different.
One man recently turned his passion for leather into a profession by founding an independent luxury leather brand. Read his story here. The Real Leather. Stay Different. Global Student Design Competition 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.