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21 Aug 2018
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Fallen stock collection prices could rise this year
Demand has dropped for hides from the footwear and automotive industries with some collectors throwing in the towel.
Alex Black
Fallen stock collection charges could increase with hide values continuing to fall as demand drops from the footwear and automotive industries.
The National Fallen Stock Company (NFSCo) said the hide market had collapsed in recent years, with most fallen stock collectors receiving less than £10/hide. In 2014, hides were worth more than £30.
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Ian Potter, who runs NFSCo’s administration, said the devaluation may force collectors to increase service costs for bovine collections and disposals this year.
Value
“The dramatic fall has resulted in most collectors questioning the commercial value and effort in continuing to remove, trim, salt, pallet and load hides,” he added.
“Several collectors have recently thrown in the towel on hides entirely and laid off their skinning teams, while others soldier on against the odds because they do not wish to lose the valuable and irreplaceable skills that are now at risk.
“These collectors hope the market will do a U-turn, however all the signs are that the demand for leather is fragile, with synthetic substitutes gaining popularity. The uncertainty of possible tariffs as a result of Brexit also adds to the negative sentiment and culminates in a generally pessimistic outlook.”
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