U.S. hides are well known for their superior quality because of their thickness, strength, larger surface (so there’s more usable area), consistent quality and smooth appearance. This ensures higher quality for final leather products. Therefore, prices tend to be higher than competitors’. However, if the customer needs to manufacture top quality leather products, U.S. hides will help them achieve premium prices. One of the major U.S. hides importer noted that consistent and sufficient supply from the U.S. is the main reason that keeps him coming back for more.The US slaughters roughly 650,000 animals every week.
Some of the traders believed that the industry could encourage cattlemen to skip branding to get higher revenue. Post was told by an industry source that this would bring in an additional $3.00 a hide, about an additional $2,000 per container. However, another source informed Post that most U.S. feedlots would not be willing to stop the common practice of branding.Nevertheless, Chinese importers can still buy non-branded hides if willing to pay a premium for non-branded hides.
According to industry sources, there are a few minor issues that may delay the release of containers of American hides and skins at Chinese ports.
Reportedly, there have been minor complaints from port inspectors about leaky containers and odor.However, most American traders Post talked to stated they did not know of any port hold-ups.
U.S. exports could be impacted by China’s downscaling its tanning industry because of environmental concerns, yet China has spent much to build up the industry with substantial employment to boot.
Accordingly, USHSLA expects that 20 percent of exports of U.S. hides could shift from China to outside countries within five years as tanneries further develop. To further support this migration, U.S. industry representatives have already organized trade missions to India and Turkey and plan to visit Vietnam to further assess the market.