September 8th

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 recent edition of the Daily Livestock Report underscores the decline in the live steer byproduct value, driven by lower hide prices, relative to the live steer price, finding a significant downward trend in the last few years. In addition, LHCA announced it will hold its Annual Meeting virtually from October 21-23, 2020. Meeting sponsorship opportunities are now available. Plus, a new podcast featuring LHCA President Stephen Sothmann discusses animal welfare and the leather industry. More on these and other topics below.

We hope you stay safe and healthy.

 

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Weekly Hides and Skins Stats 

  • Net sales of cured cattle hides reported for the period ending August 27 were 357,300 pieces and of wet blue were 141,000 pieces. Reported shipments of cured hides were 383,500 and of wet blue were 133,100. China was the largest buyer of both cured hides and wet blues. See more. For historical data, click here. 
  • U.S. Cattle Slaughter was 633,000 last week, down 3.2 percent from the previous week. Total cattle slaughter in 2020 is 21,626,000, 4.4 percent below 2019 levels. See more.
  • USDA AMS Major Packer Hide Price Report provided prices for three types of U.S. hides at four price points with a spread of $12 for heavy Texas steers to $27 for butt branded steers.  See more.

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. 
  • The September 1 Daily Livestock Report details the erosion of the live steer byproduct value relative to the live steer price. According to the report, the byproduct value recently fell to 7.4% of the live steer price, down from one year ago, when the byproduct value totaled 8.7%. On an annual basis, the percentage as dropped each years since 2016, when it was 9.4%. The declines have largely been driven by lower hide prices. Read more here.  
  • LHCA President Stephen Sothmann joined National Cattlemen's Beef Association Beef Cattle Specialist Julia Herman and American Foods Group's Vice President of Food Safety and Quality Assurance Ashley Lembke in the latest ILM podcast episode to discuss animal welfare and the leather industry. Download and listen to the episode 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.  

 

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Other Trade News

  • The Office of the U.S. Trade Representative (USTR), U.S. Department of Commerce (Commerce), and U.S. Department of Agriculture (USDA) jointly prepared a report outlining the Trump Administration's plan to address threats that increased imports pose to American producers of seasonal and perishable fruits and vegetables. The report outlines multiple actions that USTR, Commerce and USDA intend to take to support American producers. Last month, LHCA joined a letter urging USTR against any actions that would provoke retaliation against U.S. agriculture exports to Mexico. 

Monthly Trade Data

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

  • Cured cattle hides exports fell 23 percent in volume and declined 30 percent in value compared to 2019. Download the data here.
  • Wet blue shipments decreased 29 percent in volume and 31 percent in value. Italy was the largest buyer by value, totaling more than $56.6 million. 
  • Pigskin exports increased eight percent in volume and seven percent in value 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 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 the weekly figures. 

Latest Updates from Real Leather. Stay Different.

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Renowned stylist Mike Adler penned a new post for our Leather Loves series highlighting the trendiest leather pieces for the upcoming Autumn/Winter fashion season. Check out his post for key insights and must-see styling tips. Also, get the latest Real Leather. Stay Different. Global Student Design Competition news here. And, don't forget to:

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.