Poor market for sheepskins, hides steady

Dialogue with Cape Produce Co. MD Greg Feinberg

Are there any issues with sheepskins in terms of quality and availability?
Quality and availability are both relatively steady (based on the usual seasonal variations). The primary issues on both lines are market related (demand vs supply) with both Merinos and Dorpers experiencing unprecedented market challenges.

Are there any issues with cattle hides in terms of quality and availability?
No issues; it’s a largely steady environment with minor fluctuations on an ongoing basis.

What is the market for pickled Dorper skins like in Italy, Turkey and China?
Extremely poor across all geographies. The demand for sheepskins has plummeted with abattoirs in some areas now paying the tanneries to remove their product. Essentially the costs of production have risen to such an extent; coupled with the low demand and subsequent pricing - that raw material values have (in some cases) actually inverted. In SA, we are still managing to provide a return to our customers; but prices are definitely subdued.

What are your markets for wet blue hides, and what is the market like?
We have an established supplier base that we have been working with for years. We continue to process and supply our customers on a regular basis.

How has the closure of Midland affected the market?
This is more a question for the leather tanneries as they were supplying product into the SA finished market from my understanding.

Have electric vehicles affected the automotive leather market, and to what extent?
Again; this needs to be answered by the automotive tanneries; I really don’t have the insight to offer an opinion.

What is happening with SHALC?
It still definitely exists as an umbrella entity; and based on discussions I’ve actually had recently is hopefully something that will become more relevant and active in the near future.