Price Of Leather Gone Up Recently?

[Yanni]

We're trying to source some veg tanned leather for our bags and our agent says that since April the prices of raw hides have gone up 20% thus they are trying to sell us leather from €40 to €44 per sqm.

Is this possible that the price has gone up by that much in such a short period of time.?

What's your experience.

Thank you.

[Sylvia]

I know that Sherman Oak went up in price per square foot this year.

[terrymac]

We have had a severe drought in many of our cattle producing areas, and cattle numbers have gone down. Proucers couldn't afford to hand feed. When supply goes down, prices go up. Simple economics. I personally don't feel we have seen the highs yet, it is still coming.

Terry

[Itch]

We buy 40 to 50 hides every 4 months you really need to shop.Leather prices increased 3 times for us in the last 12 months price of fuel etc..I spend a lot of time shopping deals,auctions,and on the phone and less time in the shop.

[Denster]

Interesting. I just received an order of Hermann Oak from Weavers and the price had gone down from my previous order.

Edited September 20, 2012 by Denster

[theidealbt]

I think leather could go even higher yet, the livestock market will not be fully effected by current grain prices (with a possible run-up in early Q1 & Q2 commodity prices) until late '13/early '14 according to many leading ag-economists.

Keep an eye on your margins

[BondoBobCustomSaddles]

Interesting. I just received an order of Hermann Oak from Weavers and the price had gone down from my previous order.

Funny thing! Prices always go up when there is even a perceived reason, (i.e. the price of gas). In this case, you may be seeing the result of so many cattleman selling off large portions of their heard due to the drought. Bottom line is that eventually you will see an increase, some will just jump on the band wagon early to make the most of the situation. All you can do is monitor and be frugal in your aquisition of hides., weighing the price versus the quality.

Bob

[GrampaJoel]

Leather in general is up. But so is everything else. My food bill, gas etc...

My prices have gone up also.

Just a fact of life mostly.

Joel

[BIGGUNDOCTOR]

High cost of leather is why my Mom quit leatherworking --- in the late 70's.

Prices are all relative. I doubt that every hide goes to tanners, as I have seen trucks full of hides heading to rendering plants. The drought has many ranchers selling off their herds because they cannot afford to feed them, and the pastures are bone dry. With that being the case I could see a price drop-- IF the tanners have an over supply. The price increas may just be due to bad news, and they have the opportunity to jump on it. Kinda like the Chevron refinery fire recently, even in areas that that refinery didn't supply prices jumped overnight.

Hmmmm , what was it that Obama's minions said "Don't let a crisis go to waste."

Then again it may be because of something totally different like other rising costs of business in general.

[Denise]

The price we are paying for raw hides (fresh off the bull) has more than doubled in the last few months. We pay pretty much what the slaughter house receives when they ship a load of hides, and they don't set the price. They take what the processor gives them, I assume based on the market demand. So the processors are willing to pay more for hides for some reason, and that has to come out of someone's pocket, which eventually will be the end buyer, i guess.