Leather industry continues to feel global trade uncertainty By Arnaud Backbier The global trade uncertainty continues to impact the leather production because this uncertainty impacts the demand for cars, leather goods and shoes, aside from the existing changing nature of the use of leather as a fabric. Although we notice some stability during the last months, the demand for leather is still lower than in previous years, while at the same time there is an oversupply as, obviously, the demand for meat is strong enough. The oversupply is partly due to overall consumption patterns of meat, which are stable, but also to unique events such as the African Swine Fever in Asia which have also increased the demand for beef. Some indications say that 15% to 20% of the raw hides are not used for leather and often end up as waste – which is a waste of a by-product. Overall prices are stable at a low point for the time being. Order volumes in the leather industry continue to be under pressure and Smit & Zoon notices this of course. Like everyone in the leather value chain we need to monitor the global trade uncertainty and like every company in the chain, we have to deal with the consequences. On the other hand, we see that key brands look positively to the future, based on the fact that leather as a material has a high degree of durability, performance and authenticity. By promoting the natural benefits of leather, we continue to support our customers making new or interesting leather articles to promote their sales and of course our sales. Whereas we can debate and analyse the volatility in global trade, there is so much we can influence and prepare for what will happen. We can and will continue to improve the manufacturing of leather and make sure leather is the preferred fabric to use by brands in each segment as well as by consumers. This is a key reason why Smit & Zoon continues its drives for innovation and sustainable leather by our ZDHC level 3 certification and keeps working on new products such as based on the LIFE Biopol technology and the new Optitan range we introduce in this newsletter. Interesting for you Discover more on The leather industry 6 vital elements in Post COVID-19 era The leather industry has been in transition for some years, with many value chain partners delivering very positive results. In this blog I am describing how I see the Post-COVID-19 period in the leather industry. I will do this by highlighting six of the major elements the industry is focusing or should be focusing on, for a sustainable society. Update leather industry – April 2020 If the leather industry showed signs to pick up again in our view from a difficult 2019 then the Covid-19 virus is a new cause for uncertainty as it impacts global supply chains such as the supply chain of leather. This means for 2020 again at least for the first half year we continue to see uncertainty and yet at Smit & Zoon we continue to be tentatively positive. More and more parties in the leather industry join Leather Naturally and similar initiatives to make genuine leather again more visible. Making Leather: Recycling a Byproduct A big misconception is that animals are being bred for leather. When it comes to cow leather, that is never the case. The hides that are used to create cow leather are a by product from the meat and dairy industry. The leather industry Discover Stay informed Receive the latest company news and industry updates Subscribe Share this:
