Hide demand steady amid growing global supply, gelatine plants absorbing higher number of lower grades

Benjy Lapiner…It’s critical that the leather industry gets its message across to consumers and the people who influence them.

Port Elizabeth, E. Cape, SA – On the bovine side, locally, there has been a steady demand this year, albeit at lower levels than some years ago.

The balance between our automotive, upholstery and shoe sectors have enabled us to move production between customers as demands ebb/flow within the various segments.

Last month the tannery received its LWG Gold Rating, following the investments in state-of-the-art machinery, effluent treatment and a tremendous effort by Steven Broughton, Riaan Gerber and the team at the plant. This global accreditation, coupled with the fact that we’re the biggest supplier of bovine hides and sheep skins in South Africa, mean we’re a key supplier for many customers, able to deliver a consistent, stable product meeting the global standards for sustainability and traceability.

Overseas it’s a different story. Whilst there is still a strong demand for full grain leathers; on the lower end it’s very price driven. Competing with Brazil means this production is sold at a nett loss.

We now hear that up to 30% of global hides are being converted into gelatine. The international trend means that many tanneries today sort in the lime; and based on the results push hides to either gelatine or leather based on the results. Essentially it doesn’t make sense to tan hides that will result in low grade leathers. In Africa, from Botswana and further north, a high percentage of hides go to Nigeria and neighbouring countries for consumption as food.

On the sheep skin side, the demand for wool-on skins (Merinos) used for shoe and garment linings is steady, albeit at lower prices. Hair sheep skins (Dorpers) are proving much more difficult with demand for the top grades proving erratic as the global fashion houses determine their requirements for the new seasons.

The global leather image problem needs to be challenged. It’s a topic we discuss continually. The ethical objections are ridiculous, and leather needs to be seen for what it is; a recycled, organic product. This is critical for its future in all key sectors: automotive, shoe and upholstery.

Until this message is conveyed; understood and accepted, I don’t foresee any real demand improvements. It’s simply critical, as an industry, we get this message across.