September 15th
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 announced it will hold its Annual Meeting virtually from October 21-23, 2020. Meeting sponsorship opportunities are now available. Plus, effective January 1, 2021, U.S. hides exported to Kazakhstan will no longer be able to carry the health certificate for the Russian Federation. LHCA is seeking input regarding the possible implications of that decision. In addition, the fall edition of the ANPIC show in Leon, Mexico will take place virtually this November. 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 September 3 were 337,500 pieces and of wet blue were 153,300 pieces. Reported shipments of cured hides were 373,200 and of wet blue were 55,400. China was the largest buyer of cured hides and Thailand was the largest destination for wet blues. See more. For historical data, click here.
- U.S. Cattle Slaughter was 574,000 last week, down 9.3 percent from the previous week. Total cattle slaughter in 2020 is 22,200,000, 4.6 percent below 2019 levels. See more.
- USDA AMS Major Packer Hide Price Report provided prices for seven types of U.S. hides at seven price points with a spread of $4 for branded southwest cows to $30 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
- Mark your calendars -- LHCA will hold its Annual Meeting virtually from October 21-23, 2020. More details about the meeting, along with topics and presentations, will be shared in the coming weeks. Companies interested in sponsoring this event should contact Michael Schumpp.
- As of January 1, 2021, Kazakhstan will no longer accept the U.S.-Russia veterinary health certificate for U.S. hides and skins exports. The U.S. Department of Agriculture (USDA) informed LHCA that there are discussions underway to negotiate a bilateral certificate between the U.S. and Kazakhstan, though this certificate would bar the transshipment of hides/skins through other Eurasian Economic Union (EAEU) countries (Russia, Belarus, Armenia, Kyrgyzstan). Therefore, under this bilateral agreement, U.S. hides and skins destined for Kazakhstan would not be able to transit through any of the aforementioned countries. USDA and the Office of the U.S. Trade Representative are interested in learning whether a restriction on the transshipment of U.S. hides and skins through EAEU countries would pose challenges for exports to Kazakhstan. To provide feedback on this topic, contact Michael Schumpp.
- The fall installment of the ANPIC show will take place November 3-5, 2020. The event, like its spring edition, will be held virtually. More 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
- Last week, HMTX Industries LLC filed a lawsuit at the U.S. Court of International Trade (CIT) seeking to challenge the Office of the U.S. Trade Representative's (USTR) decision to issue List 3 China 301 tariffs. The suit challenges the List 3 and List 4 tariffs, alleging they were prosecuted in an untimely fashion and without statutory authorization. The suit also challenges USTR's various procedural failings in seeking comment on, and promulgating, the Lists. The suit asks the CIT to declare List 3 duties unlawful, refund any duties paid under List 3 and enjoin the U.S. Government from imposing List 3 duties in the future. A fact sheet detailing the complaint is available here.
- Officials from the U.S. and United Kingdom began their fourth round of free trade agreement negotiations last week. The talks, which are expected to extend through September 18, have entered a critical stage as concerns heighten over the future of the UK-EU trading relationship. The UK has announced steps that, if implemented, would diverge from the terms of its withdrawal agreement with the EU, complicating the chance that an agreement will be reached before the end of this year. Consequently, it is increasingly unlikely that the U.S. and UK will conclude free trade agreement negotiations before the November election in the U.S.
- U.S. Ambassador to China Terry Branstad will be stepping down from his position after more than three years in Beijing. Branstad is expected to leave his post before the U.S. Presidential Election, which will take place November 3. A potential successor has not yet been announced. Read more.
Monthly Drought Monitor - September, 2020
Intense heat, low humidity, gusty winds, and little or no rain allowed for broad-scale drought intensification in most of the central Great Plains and from the High Plains to the Pacific Coast. Conditions took a dramatic turn across the Rockies and Plains as the valid period ended, with hot and dry conditions suddenly replaced by much colder weather, and snow, in some areas. A number of sites from the central Rockies into the northern Plains saw temperatures drop from around 90 degrees F on Labor Day to near freezing, with light snow the next morning. Denver, CO went from temperatures averaging 15 degrees above normal on September 6 to 30 degrees below normal on September 8, with an inch of snowfall reported. East Rapid City, SD appears to have set a national all-time record by going from 100 degrees F (102) to reporting measurable snow in a span of 2 days. The colder and wetter weather that developed just as the period ended had little impact on drought conditions in most areas, given the hot, dry, and windy conditions that preceded it. Wildfires continued to scorch and spread rapidly across parts of California, with some quickly breaking out and expanding in part of the Rockies as well. Denver, CO went from reporting reduced visibility due to wildfire smoke on Labor Day, to reduced visibility from falling snow the next morning. Elsewhere, several inches of precipitation across interior northeastern Texas, in a swath from eastern Iowa to central Illinois, across Ohio, and in parts of Arkansas brought significant drought relief, and lesser amounts in adjacent areas brought more limited improvement, as did moderate precipitation in parts of the northern Rockies and adjacent Plains.
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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.
- Vegan leather made from mushrooms could mould the future of sustainable fashion - World Economic Forum
- Central Minnesota farm 'renegade' tackles new industry: fashion - The Star Tribune
- Calvin Klein and Tommy Hilfiger ban the use of exotic animal leather - The Beet
- Fungi leather about to hit the market - Farm Weekly