March 24th

Leather and Hide Weekly

As more states issue stay-at-home orders and move to close "non-essential" businesses to help curb the spread of Covid-19, the Leather and Hide Council of America (LHCA) is closely monitoring developments related to these guidelines and is working to collect as much information as possible to assist members. We provided general information in the Industry Updates section below, but we continue to encourage members to communicate with their local and state authorities for clarification regarding the implications of a directive for their operations. LHCA is available to support members as they navigate this process. More on this issue 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 March 12 were 458,800 pieces and of wet blue were 94,600 pieces. Reported shipments of cured hides were 323,200 and of wet blue were 165,000. China was the largest buyer of cured hides and Italy was the largest destination for wet blue. See more. 
  • U.S. Cattle Slaughter was 653,000 last week, up 3.2 percent from the previous week. Total cattle slaughter in 2020 is 7,328,000, 1.9 percent above 2019 levels. See more.
  • USDA AMS Major Packer Hide Price Report provided prices for five types of U.S. hides at six price points with a spread of $3 for branded cows to $34.50 for heavy native steers.  See more.

Industry Updates

  • With more states moving this week to close “non-essential” businesses in the wake of Covid-19, LHCA will continue to provide as much information as possible to help you navigate this issue. Last Thursday, the Department of Homeland Security released this memo, which gives guidance to state agencies as they make their determinations as to what will be considered “essential” businesses. Note that food and agriculture companies are specifically identified as essential, as well as transportation companies, and those companies supplying the Defense Department. The Guidance explicitly includes meat packing companies and renderers, and we believe the interpretation, in many cases, also extends to hides and skins processors, leather tanners, and other companies supplying those industries, but the final determination will be made on a state-by-state basis. Please contact LHCA President Stephen Sothmann or Associate Director Michael Schumpp with any questions. The following links provide important updates regarding about Covid-19, including information to assist businesses deemed "essential." 
  • North American Meat Institute Latest Information 
  • American Trucking Association Transportation Information
  • Resource for Businesses Deemed Essential    
  • For those LHCA members who have not yet completed your membership directory survey, please be sure to do so at your earliest convenience. We will soon be publishing the association's updated membership directory on the new LHCA website, and want to ensure we have the most current information for your business. If you have questions about the survey, please contact Michael Schumpp. 
  • LHCA has decided to hold its Spring Board of Directors Meeting via teleconference/webinar only. The meeting, which was scheduled to take place April 23-24, 2020, in Washington, DC, will no longer be held in-person. LHCA encourages those members who made travel arrangements to attend the in-person meeting to cancel those plans as early as possible to recoup any expenses incurred. LHCA will follow up in the coming weeks with a new schedule of events, including teleconference/webinar details for the Executive Committee, Board of Directors and committee meetings. Most of the meetings will still be held on April 23 and 24, but some committees may convene earlier that week. In the meantime, please contact Stephen Sothmann or Michael Schumpp with any questions about the meeting.
  • Many outdoor and athletic brands are seeking suppliers that are Certified Berry Compliant. If your company is Certified Berry Compliant, please contact Hisham Muhareb at American Events, Inc./The Materials Show with your contact information and a short profile of your company, along with a list of your products. 
  • The APLF-Leather, Materials+ and Fashion Access show, which had been postponed until June 1-3, 2020, in Hong Kong, will now be further postponed, due to concerns regarding the Covid-19 pandemic. Show organizers are considering alternate dates, and we will share more information once it becomes available. 

 

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Other Trade News

  • USDA released a third public GAIN report that includes a translation of Frequently Asked Questions, issued by China's State Council Tariff Commission, regarding the country’s tariff exclusion process that opened on March 2, 2020. Only Chinese importers may apply to receive tariff exemption using a product's eight-digit HS code. LHCA members are encouraged to work with their Chinese importers and customers to apply for the tariff exclusion. 
  • LHCA joined 66 other associations in urging the Federal Maritime Commission to adopt expeditiously the Proposed Interpretive Rule addressing fair demurrage and detention practices at the U.S.'s maritime ports in response to growing challenges posed by the COVID-19 pandemic. "The imposition of detention and demurrage charges when equipment cannot be returned or containers cannot be picked up during the free period, for reasons beyond the control of the shipper, receiver or motor carrier, render U.S. exports less competitive in the global markets, and imports more costly for US consumers and manufacturers," the organizations contend in the letter. More here.
  • The U.S. has temporarily closed its northern border with Canada and southern border with Mexico to non-essential travel to curb the spread of COVID-19. The Trump Administration said the partial border closures do not apply to lawful trade and commerce. Read more.

Monthly Trade Data

  • Monthly Livestock Slaughter Report is now available. February 2020 cattle slaughter totaled 2.58 million head, up five percent from February 2019. Get a summary of the data here.    
  • Cattle and calves on feed for the slaughter market in the U.S. as of March 1, 2020, totaled 11.8 million head. The inventory was slightly above March 1, 2019. Read the report here. 

Cattle on Feed - As of March 1, 2020

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Latest Updates from Real Leather. Stay Different.

Leather Shanghai Street

 

The Cambridge Satchel is the perfect leather accompaniment to add to your style arsenal. Check out how it travels from the drawing board to you via the workshop floor. Also, the Real Leather. Stay Different. global student design competition continues to ramp up in China, Taiwan 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.