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Cow hides for sale melbourne7/30/2023 ![]() Processing hides to salted stage in Australia could now cost between $10 and $15 when transport from regional meatworks to processing facility, and then to the container terminal at the port were included. The cost of processing (salting) hides in Australia was also going up, because of the environmental management issues associated with responsibly disposing of the salty brine left over after treatment, he said. “That’s a debate that’s going on at the moment.” Cost to handle hides rises “It can become a bit of a least-loss situation,” Mr Barker said. In the current market, the cost of consigning lower quality hides to landfill could in some cases be higher than the cost of selling them into the leather processing market, and meatworks did not have the ability to stockpile hides during periods of poor prices. Rendering might provide a partial solution, but it would be difficult to render really large numbers of hides.” It’s not that easy or cheap to get rid of a hide, in an environmentally responsible way. “Some hides producers have done some investigations, and have come back with some alarming figures. But there was still a cost attached to disposing of hides in landfill. Mr Barker said the subject of destruction of lower quality hides had been scrutinised in industry circles this year, in order to try to rebalance supply and demand. If there were any positives at all in the current market, it was that buyers were ‘at least still prepared to buy hides,’ but that price be uneconomic, he said. The reality is that buyers could pay more, but don’t have to, because they have no demand pressure on them, and they’re getting offers on hides from all round the world.” This time, they are continuing to buy, but only at very low prices. ![]() Normally what happens is that hides users just stop buying. “This year’s price correction has been different. “There’s been big corrections seen in hides values before – the GFC era and the Asian currency crisis in 1997 – but in the past, hides prices have always come good again, after the slump,” Mr Barker said. Some buyers had walked away from purchase deals as the hides market continued to decline during 2018. “Hides value used to be a factor in what cattle were worth to a meat processor, but today it is becoming insignificant in the scheme of things,” he said. “Go back 20 years or so, and cattle hides were worth about 10 percent of the overall animal value,” Mr Barker said. Lighter weight Queensland hides could now be worth as little as US$8.50 into China, while Victorian, better quality smaller hides were making US$20-$25. Bigger Queensland hides had gone from $50-$60 back to US$15-$20 over the same period, after starting the year around $35. ![]() The best large hides out of southern Australia that were worth up to US$110 at the peak of the market back in 2014 are today worth less than US$40. He said when production costs (transport, salting, grading, packing in containers and shipment to port) were taken into account, some Australian hides were breakeven, at best, when sold at current rates. Some categories were now lower than the last major hides downturn during the Global Financial Crisis, when the market bottomed out in 2009. Hides trader and industry consultant Ross Barker said Australian hides today were as low as he had ever seen them in his 30 years in the business. The Northern Cooperative Meat Co singled-out declining hides value for mention in its annual results reported on Beef Central last week – with the processing company logging a $7 million loss for its financial year ended June 30.īeef Central last scrutinised the reasons behind the falling hides market in this story – “Global hides market a complex business, but China still drives the bus” – back in February, but prices have continued to deteriorate as the 2018 year has unfolded. In both examples, transport costs to ship the hides to sites further south for salting and preparation had made sales of lesser quality ticky hides for leather production uneconomic, at current market prices. Declining new luxury vehicle sales is one of the factors behind slower demand for cattle hides for leather
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