November 10

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 Associated Press and other major U.S. media outlets have declared former Vice President Joe Biden the winner of the 2020 U.S. Presidential Election, defeating President Donald Trump. President-Elect Biden's victory will likely have implications for trade and agricultural policy. Also, the European Union today will impose higher tariffs on $4 billion worth of imports from the U.S. in response to a long-running transatlantic trade dispute over aircraft subsidies. Major U.S. hide, skin and leather exports to Europe are not subject to these higher tariffs. Plus, the latest monthly export data is now available. 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 October 29 were 401,800 pieces and of wet blue were 70,300 pieces. Reported shipments of cured hides were 374,900 and of wet blue were 200,300. China was the largest buyer of cured hides and Italy was the largest destination for wet blues. See more. For historical data, click here. 
  • U.S. Cattle Slaughter was 647,000 last week, up 1.4 percent from the previous week. Total cattle slaughter in 2020 is 27,401,000, 3.7 percent below 2019 levels. See more.
  • USDA AMS Major Packer Hide Price Report provided prices for five types of U.S. hides at five price points with a spread of $7 for branded southwest cows to $34.25 for butt branded steers.  See more.

Industry Updates

  • International Leather Maker will host a webinar tomorrow, November 11, at 8 a.m. ET, to discuss the results of, and future plans for, Leather Naturally's METCHA campaign. To register for the webinar, click here. 
  • The University of Northampton Institute for Creative Leather Technologies announced a new 12-week online leather training course, starting January 13, 2021. The course is ideal for those new to the industry and for those looking to improve their skills and increase their knowledge about the leather value chain. The course costs 500 GBP, and is 300 GBP for students. For more information, and to register for the course, contact Marc Gummer. 
  • The second draft of the Leather Impact Accelerator 1.0 is now available for public review and feedback. Public comments on the draft are due December 1, 2020. The Leather Impact Accelerator is a benchmarking program that recognizes and rewards best practices in the leather value chain. It uses benchmarks to address animal welfare and deforestation/conversion-free at the farm level, to determine the societal and environmental impacts of leather processing and t0 set expectations for traceability. To learn more and submit comments, click 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.  

Latest Updates from Real Leather. Stay Different.

autumn_boots

 

Is your leather look more London, Paris, Milan or New York? Take our latest quiz to find out which style most closely reflects your personality. There are no wrong answers. Plus, check out this season's most sought-after leather boots. Get the latest news from Real Leather. Stay Different. here. And, don't forget to:

 

Other Trade News

  • Former Vice President Joe Biden has defeated incumbent President Donald Trump in the U.S. Presidential Election, according to the Associated Press and multiple major news outlets. Democrats retained control of the U.S. House of Representatives, while the balance of power in the U.S. Senate depends on the outcome of two forthcoming runoffs in the state of Georgia. The outcome of the election is likely to result in changes to U.S. trade and international policy, though more details will be shared as they emerge over the coming months. The public policy and government relations team at the firm Kelley Drye has developed an analysis of the election results and their policy implications. The analysis was last updated on November 6, prior to President-Elect Biden's victory, though the report projected a Biden win.
  • Effective today, November 10, the European Union (EU) will impose higher tariffs on $4 billion worth of imports from the U.S. as part of a long-running transatlantic dispute over aircraft subsidies. The new tariffs include an additional 15 percent duty on large aircraft, and an additional 25 percent tariff on numerous other goods, including some U.S. leather handbag and suitcase exports to the EU. The preponderance of U.S. hide, skin, and leather exports to the EU are not subject to the tariffs. Read more. 
  • Denmark last week announced it will cull its entire mink population, including breeding stock of up to 17 million, after a mutation of coronavirus found in the animals spread to humans. More information is available in this report.
  • The U.S. Department of Agriculture Economic Research Service (ERS) issued a report featuring a range of policy simulations examining the economic implications of the European Union (EU) Green Deal's Farm-to-Fork and Biodiversity Strategy on global agricultural production. The ERS warns that the 10-year plan of targeted reductions in the use of land, antimicrobials, fertilizers and pesticides would lead to a decline in EU agricultural production and would decrease the region's competitiveness in domestic and export markets. More here.  

Monthly Trade Data

U.S. hides and skins September 2020 export data is now available. Get a summary of the data here.*

  •  Cured cattle hides exports fell 16 percent in volume and declined 28 percent in value compared to 2019. Download the data here.
  • Wet blue shipments decreased 29 percent in volume and 32 percent in value. Italy was the largest buyer by value, totaling more than $73 million. 
  • Pig skin exports increased 6 percent in both value and volume compared to 2019. Download the data here. 

*Please note, monthly and weekly export data often diverge. As a result, the figures in the links above may not align with the data presented in the weekly hides and skins statistics reported in this newsletter. LHCA is aware of this issue and is working with USDA and Customs to recalibrate the monthly data to more accurately reflect weekly figures.  

leather pile

 

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.