Hides, skins and semi-processed leathers : Starting with a positive mindset
How has the closure of Midland Tannery affected your business?
The tannery operated in very different markets to ourselves; as such there haven't been any significant effects.
Do you expect domestic demand for wet blue hides to grow or drop this year?
We always hope to see growth in the local market, it’s a key part of our business; and with a positive mindset we have planned for at least a similar base to 2023 with upside potential.
Do you expect international demand for wet blue/salted hides to grow or drop this year?
We expect a similar year to 2023; steady demand at the market prices. South African supply is such a small component of the global market that it's generally a price discussion rather than demand changes. Obviously increases in demand will positively affect pricing, but the nett quantity sales remain consistent.
Ditto for sheepskins?
The Dorper market is under severe pressure, across all grades. We expect the situation to stabilise soon but the final price points at which this will occur are unclear. The Merino market is holding steady, albeit at relatively low levels.
Are the wars in Ukraine and Gaza affecting those products in general or South Africa specifically?
We have been dealing with geo-political impacts for some time now. There is certainly an impact (more so with the Ukrainian conflict), we expect the situation to stabilise in Q1 of 2024.
Is disease control in SA affecting those products? No.
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