BSE is not over, far from it. New cases are detected on an almost daily basis, but the newspapers don’t mention it much given that the foot and mouth outbreak is far more acute. It seems to have taken on biblical proportions in the UK where the government in this election year has done too little too late. It has been more worried about the voters’ reaction to its policies, than containing the disease and safeguarding an industry.
Our industry’s difficult situation has been made worse with meat consumption down to a bare minimum and prices of the raw material soaring.
At APFL prices per sq ft of freshly offered wet-blue hides from Russia were higher than the prices of finished leather made from hides of the same origin.
It seems that experts are convinced – and hopefully have advised the EU Commission in Brussels – that processed hides and skins should not pose a risk of spreading the foot and mouth disease. Some merchants were heard to be afraid that hides recovered from condemned animals entering the market could prove to be a very destabilising factor, particularly considering that prices are already going through the roof.
And, if the market suddenly crashes, many are likely to be seriously hurt. All will remember from the recent past the many illustrious names that have disappeared.
I think that the possibility of recovering the hides and skins from foot and mouth culled animals is very remote. Although theoretically this may be possible, I believe that practically it is too far fetched. The infected animals must be killed on the farm by means of a head shot. They are not bled so the veins on the hides and skins are still full of blood, militating against good quality hide or skin.
The animals have to be flayed but it is unlikely farms can afford the equipment for a professional take-off, unless mobile units can be developed. And assuming that the trade can accept such hides and skins, hand or machine flayed, I guess they would have to be salted on the spot at the farm.
Transporting this material would again raise problems. The hides and the trucks on which they are to be moved would all have to be disinfected before they leave the farm and when they reach collection centres. Apart from the huge complications involved, the cost would probably be so high as to make the operation uneconomical.
I therefore expect we will continue to see funeral pyres of mostly healthy animals in England for some time to come. Traders can stop holding their breath; at least for the moment.
I do not understand the reasons given against vaccinating the British herds as is being done in Holland? Meat of vaccinated animals cannot be exported, but it can be consumed locally.
How much cheaper is it to burn hundreds of thousands of carcases than to vaccinate them? With vaccination, prices would be more stable, more meat and hides would be available and farmers would need far less compensation.
The present situation, however, is making the market extremely precarious. Prices are being pushed right up the mountain, with the risk that with little or no foothold we may reach the peak at any moment and drop off on the other side.
How much business is there really around? How can a tanner buy his raw supply at a higher price per sq ft than the price of the finished leathers he sells? And, even if the retailers of leathergoods can take a sympathetic view of their suppliers’ plight, they can hardly change their prices mid season after part of the orders for the season have been delivered.
This industry is between a rock and a hard place. It is haunted by reduced consumption of meat, by the problems of foot and mouth disease, BSE, and the threats of tree huggers – all just one year after things started to move in the right direction. It seems that we don’t have our fate in our own hands.
Last year the leather industry did well, very well, but that was certainly not enough to wipe out the bad memories of the preceding years. Now we are already confronted with a new crisis.
Can we cope? It seems we are attracting problems on a worldwide scale. As if all this was not enough, Türkiye have added some extra spice with their recent financial crisis, which certainly does not bode well for its leather industry. This will certainly function as an additional destabilising factor.
What can we do about this situation? I fear at this moment very little. We are far too late to influence and change decisions in the UK and I wonder if the British Government would have listened to arguments coming from our industry in the first place.
The related problems in France, Holland and Denmark will fizzle out rapidly as they seem to be contained as well as possible. They will, therefore, have very little impact on the leather market where the damage that has been done will be felt for years to come.
I am looking for an optimistic note to finish this Limeblast, but I fear I can’t find one right now. As always we’ll have to adopt a stiff upper lip and keep smiling – if that is possible.
Sam Setter
Sam_Setter@yahoo.com
