Some cow hides have become worthless due to curtailment of car manufacturing
With car manufacturing greatly curtailed in Europe, some cow hides have become worthless, which is further reducing cattle prices.
But “serious devaluation of finished livestock prices, as key market channels and certain EU markets are effectively closed, and the mix of sales through retail outlets is skewed heavily towards lower value cuts” was the main market impact identified by Irish beef processors due to the Covid-19 pandemic.
Market analysts said hide sales are falling fast.
Some abattoirs are making space to store hides longer than would normally be expected, hoping for prices to recover.
However, this can have a detrimental impact on hide quality, and hides or skins might end up with a disposal cost rather than a market value.
Unmanageable build-up of hides can adversely affect abattoir operations.
The hide market had already been under pressure for some months, but Covid-19 concerns pushed prices lower.
Many sheepskins were already worthless even before the Covid-19 pandemic.
