Leatherbiz Market Intelligence 03.12.24

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TUESDAY, DECEMBER 03 2024

Leatherbiz Market Intelligence executive summary:

• Expectations of major structural change in the leather industry in Europe in the early part of next year seem well founded

• Strategy and, above all, financial strength will probably be the dominant decision-making criteria for the future of many European companies

• Tariffs proposed by the president-elect of the US will probably also play a major role in this

• It must be clear to everyone that the introduction of these tariffs will lead to a backlash

• This will mean a burden on entire supply chains.

MARKET INTELLIGENCE

Macroeconomics

Announcements by the US president-elect to introduce further tariffs on countries including free-trade-agreement partners Canada and Mexico have generated great interest. Considering the far-reaching consequences, the decisions that follow the inauguration of the new president will be of great importance. Inflation and currency may not go the way expected.

Entire supply chains are up for grabs and if tariffs are imposed as planned, this is likely to trigger significant changes and shifts in production and supply chains.

For the most part, the stock markets were relatively unmoved by the political and economic events. The inflation rates in the US and Europe were slightly above 2% and therefore in line with expectations. The political instability in Europe was only reflected on the stock markets there to a very limited extent. In China, the government’s measures to stimulate the economy do not yet appear to have met with a particularly favourable response from citizens and companies.

The oil price has changed very little. The gold price barely managed to defend its value at the $2,600 per ounce mark.

The US dollar continued its rise, but did not make any further direct progress towards parity with the euro. With the end of the year approaching, investors may not be willing to trigger any further major changes at the moment. However, this may change again towards the end of the year with the market becoming thinner and end-of-year transactions having more influence.

Market Intelligence

There is a clear sense that most players are slowly but surely making their way to the

end of the year without expecting major changes.

Company takeovers in Italy by luxury brands and semi-state-owned Chinese companies show that many leather companies have by no means given up. There have also been some surprising management changes and some companies have reported on their business development. The results of the international luxury groups in particular were dominated by bad news, but smaller brands can always demonstrate that rays of hope are possible. If these rays of hope are possible, it also means that if you understand the tastes and interests of customers and meet them with your products, it is still possible to sell successfully, despite all the negative vibes. This also applies to leather products.

Whenever there are relatively few facts available, the rumour mill flourishes. Speculation is growing on a daily basis, especially in Europe, as to which paths some well known companies might take in the future. The leather supply chain is famous and notorious for its rumours and speculation, but to be honest, the last few years have been rather quiet in this respect.

We will not take part in rumours and speculation in individual cases, but at least this much can be said: we have been expecting major structural change for some time and the more time passes, the more we are convinced that we are right in our expectations. Strategy and, above all, financial strength will probably be the dominant decision-making criteria for the future of many European companies, from meat production to consumer goods. This includes automotive companies and the changes that they are likely to face in 2025.

The tariffs proposed by the president-elect of the US will probably also play a major role in this. Even if everyone is now focusing on

the likely tariffs on imports to the US, it must be clear to everyone that the introduction of these tariffs will always lead to a backlash. This means not only bilateral burdens on trade and the exchange of goods, but also possibly a burden on entire supply chains, the length and structure of which are probably not yet clear to everyone at the present time.

This could also have an impact on the leather industry. It is possible that this will start with agricultural products, in this case beef and hides, and then the chemicals that form the basis of all production in the chain.

If you want more examples of the major structural changes that are already public today, just think of the planned takeovers in the meat industry in continental Europe. The same applies to the chemical industry, where a number of companies are also involved in products for the leather industry. To complete the major influences, we only need to look at the European automotive industry and its suppliers. It must be clear to everyone that major tectonic changes in any industrial chain are not possible without corresponding adjustments along it. You can resist the pressure for a while, but in principle everyone has to face up to the realities and ask themselves what consequences there will be for their own companies.

Decisions in the leather industry will be made from completely different perspectives. On the one hand, there are traditional, small and medium-sized family businesses and, on the other, larger industrial companies, some of which are financed by private equity. Financial and human resources, strategy and patience are very unevenly distributed. However, as much as we rack our brains about it, we are unable to come to any really reliable conclusions about what might happen in the coming months. It is quite possible that the decisions made by US politicians will also have a not inconsiderable influence on this.

A few weeks before the end of the current year, it is probably not particularly bold to expect changes in 2025. Politically as well as economically, it is difficult to remember a turn of the year in which there were so many unanswered questions as there are this year.

For the leather supply chain, one topic that we have mentioned so often is always at the forefront. Nowadays, leather is an optional material and no longer a must-have material. There is also no doubt that leather is the superior material in many respects for making many products. Anyone who takes quality, durability and therefore sustainability and environmental friendliness into account

when making a purchase decision cannot ignore leather.

The conclusion from this is that there must be a potential market of several billion people who do give thought to materials in their purchasing decisions. Informing them and focusing their attention on leather must be the main task. The leather industry is unlikely to succeed in reaching consumers directly, but it can do so via the manufacturers of finished products. As bad as the mood in many consumer goods markets may be at the moment, and lengthy as the process of persuasion may be, there are few real alternatives to this strategy. It is encouraging to note that there are always developments that open up changes and new possibilities. New tanning processes that supplement or complement traditional and classic tanning processes with mineral salts or vegetable tanning agents are attracting attention and interest. However, the main task must remain to bring this

message to the consumer and make the information widely available on the consumer markets. The tools for this are well known and the successes of those who use these tools are often quoted and usually admired, but unfortunately our industry is not characterised by a particularly high level of commitment and creativity in this sphere. The classic methods of explanation in lectures or old-style written commentaries rarely make an impact beyond the inner circle of those involved. Now, unfortunately, these methods hardly work at all, despite all the efforts. Waiting for others to solve the problem for you is obviously not an effective way either.

Perhaps we should take a look at those on the internet who are already involved in promoting consumer goods and their materials. Among those active in this sector, the number of people concerned with the quality of materials and workmanship is increasing. In this context, the dismantling of shoes and bags to examine their

Excellent –Bisphenol optimized syntans to achieve high leather quality

construction has become popular. In some cases, some manufacturers and brands may not particularly like this. This is understandable from a business point of view, but it serves the cause if it is done with a certain amount of expertise and seriousness. In addition, every manufacturer should be interested in being able to justify why they manufacture their products in the way they do and what value this represents for the buyer.

For someone who buys fashion, brand and image, the corresponding price share and the real quality of the product are of less importance. For someone who expects a high counter-value and utility value from their product, the expectations are different. However, many people today are far removed from manufacturing and are therefore less and less able to judge the quality of materials and workmanship. It can be a great help to them to offer an overview of what they can expect for their money. There is huge potential here and you certainly cannot just work with instructional videos and lectures on social media to reach people. Anyone who can mix reliable information with a good dose of entertainment has a better chance of reaching many people.

There must be many different ways to do this and the eternal argument that the leather industry would not be able to finance appropriate marketing activities is simply not true. We are already seeing the first signs of this and will continue to follow developments with great interest. We also hope that no serious mistakes are made because these could be very damaging.

We also see little movement in the split market. Everything that needs to be said about this has been said in recent months. The collagen and gelatine industry is facing major changes, mainly in terms of relocation of production. Costs and availability of raw materials are becoming increasingly important and the meat industry is thinking more and more every day about how to find other marketing channels.

We can also dispense with any further analysis of sheepskins for the time being. If anything, they are beginning to recalculate the prices of certain types of wool, which will enable them to achieve a good and fair price for wool. There is virtually no interest in leather but if wool prices continue to develop positively, there is a chance that some sheepskins and lambskins could be used again. Otherwise, business in this sector will remain limited to the few known niches.

From a non-European perspective, we expect little change in the coming weeks. Christmas is only four weeks away and experience has shown that activity tends to end a week earlier. The only exception is when the order situation is excellent; then, work has to continue until the last day and the interruption is perceived as a burden from a business perspective. This is not the case this year. With the Chinese New Year coming relatively early this year (January 29), the slowdown period is actually a bit longer.

Sales of cured cattle hides for the period ending November 21 were 390,800 pieces. The figure for exports of wet blue was 66,500 pieces.

The most recent reports on hide prices showed Colorado branded steers weighing 66-68 pounds at $20 per piece, and heavy Texas steers weighing 60-62 still at $17 per piece.

As they have for many weeks now, cow hide prices remained at $14 for northern dairy cows, $13.50 for south-west dairy cows, $7 for northern branded cows and $6.50 for southwest branded cows, with weights of 50-52 pounds in each case.

The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.

Cattle markets USA

It is fitting that the strength in the cut-out has been with the ribs. At holiday season, whether the actual holiday or just a family get together, a prime rib roast is something special. Consumers are feeling better about the economy and their lives and this translates into choices at the meat counter.

Larger show lists sent futures lower in early week trading. The increase in show-list sizes should not be surprising following a very small holiday slaughter. Some sellers might have agreed to prices steady with last week but buyers were not interested and sellers are reluctant to sell any cattle at lower prices. Strength in the box prices was reported early Monday.

The strength this past week in negotiated fed cattle prices was surprising but carcass weights posted a large decline and beef demand was good. Fed supplies are shortening as holiday demand improves. Most sales last week were at $190 but the range was between $189 and $193, which was $2$5 higher. Dressed prices were mainly $295$300, with most sales at $296.

The replacement market has been on a rampage with each day bringing higher prices. The nosebleed prices of yesterday are quickly replaced with new benchmarks as competition forces many operators to overpay to play. New grazing opportunities are finding many wondering if backgrounding cattle is really necessary when price levels foreclose any margin. Many farmers who previously bought their own inventory of cattle are deferring to recruiting customers to stock their wheat fields. Cattle feeders are now looking at break-evens from $190-$200 with futures in the mid $180s. Cattle inventories in the feedyard are at a 25-year high but as short supplies of replacement surface, the direction can only be downward.

Imports of cattle from both Mexico and Canada are factors in our stocker and feeder supplies. The discovery of screwworm in Chiapas, a Mexican state bordering Guatemala, has caused a disruption and temporary closing of the border. This anxiety is joined with unclear plans for tariffs on imported cattle

Actual Slaughter Under Federal Inspection

from Mexico. The normal flow from Mexico is not a huge number but enough to impact prices in a time of dwindling inventories. Mexico crosses around 100,000 head a month to the US and we are at the tail end of the largest volume seasonally.

Corn prices were flat to open the week. There is much uncertainty about trade policy under the new administration. The early tough talk on tariffs may be posturing or may be real. Corn basis levels in Guymon, Oklahoma, are at $1.10, basis the December contract.

GERMAN PERSPECTIVE

This week: It remains the case that the last quarter of the current year in no way corresponds to usual developments. The challenges lie much less in processing sales and responding to enquiries than in ensuring that all contracts are processed on time. Logistics is a big problem. Shipping companies seem to have abandoned all planning; what was known for many years as reliable conference shipping has now fallen

LATEST HIDE AND SKIN PRICES FROM GERMANY

back to what used to be called tramp shipping. Ships come and go as they please, deadlines are not met, booked shipments are cancelled at short notice and the handling in the ports leaves more than a little to be desired. All at the expense of the person paying for the party, of course. By all accounts, things are not expected to get much better in the first quarter of next year either. The Chinese New Year with its interruptions in the ports in Asia is always a challenge even in normal years. How will the shipping companies deal with it this year? We’ll find out in eight weeks’ time.

Otherwise, the market is becoming increasingly divided into two worlds. In Asia, leather production still seems to be relatively constant and stable. However, most customers, especially in China, are firmly convinced that the one-way street of prices is far from over. For cowhides in particular, buyers in social media messaging groups have obviously decided to try and reduce prices significantly once again. This is somewhat at odds with what is being reported from other supplier countries.

In Europe, the year is slowly coming to an end. The delivery programmes, which are traditionally planned in advance and coordinated with fixed delivery dates, are being adhered to and ensure that production is largely secured until week 51. The possible connections from mid-January are not yet being discussed and this may not actually happen for another two weeks.

The work on logistics and administration is very challenging, while sales activity is rather manageable. As a result, there were only a few sales to Asia last week and once again the real interest was in heavier, male hides, whereas only very aggressive price offers were seen for the classic female hides. These were hardly worthy of further consideration and therefore no real and serious business negotiations took place.

The kill: Only in terms of slaughter are we

seeing a normal final phase of the year. It is raining a lot, the temperatures are appropriate for the time of year and the meat business appears to be satisfactory, nationally and internationally. Prices for live cattle are still at a very high level, which is good for the farmers, but possibly more difficult for the margins on meat sales. The kill remains very high, in line with the time of year.

What we expect: The majority of tanners in northern China are definitely trying to drive down the prices of raw materials significantly. The argument is always to point to the falling prices for splits, but then it has to be said that it is really worrying if the decision to buy really only depends on how much money you get for the split. Normally, the grain is actually the part that exerts the main leverage on the costing. Depending on customer stock levels, waiting times may well be extended again in Asia.

LONG READ Beast To Beauty

The ultimate green machine

Michael Jordan has been named as the owner of the first one-off coach-built Battista from Automobili Pininfarina – but does he know he is sitting on Olivenleder?

WhenOlivenleder’s head of sales Thomas Lamparter, read the news that the owner of the Battista Targamerica, the first one-off coach-built model from Italian carmaker Automobili Pininfarina, had been revealed as US basketballer Michael Jordan, it instantly took him back to his youth. “He was one of my idols, his dunks legendary and probably still unmatched today,” he says. “Just to be sure, I quickly checked with Automobili Pininfarina to confirm: yes, it’s Olivenleder that ‘His Airness’ is now sitting on.

From that moment on, I went through the day with a satisfied grin, feeling like I could dunk myself.” Pininfarina is an Italian car design firm and coachbuilder, founded by Battista "Pinin" Farina in 1930 and has since been run by his son and grandsons, although Indian multinational Mahindra Group acquired 76% stake for ¤168 million in 2005, and its headquarters are now in Germany. While automotive remains an important sector –building cars for customers including Ferrari, Alfa Romeo and Maserati – Automobili Pininfarina also designs high-speed trains, buses, yachts and private jets and consults on interior design, architecture and graphic design.

When Pininfarina presented the Battista Targamerica for the first time at the US- based Monterey Car Week this summer, the identity of the owner was unknown. However, a social media post in October revealed “dear friend” Michael Jordan had placed the order at the car show in 2023. The renowned car collector

and NBA star is the first billionaire sporting personality, earning a share of the profit from each Nike Jordan shoe since their launch in the 1980s. A renowned car collector, Mr Jordan already owned a Pininfarina Battista, but wanted to add a new level of personalisation to his next car, rumoured to be worth around $2.5 million.

Seminal moment

Hand-built by the atelier’s artisans in Cambiano, Italy, the car’s body was reengineering to suit the roofless profile and was inspired by one of the most famous oneoff cars designed by Pininfarina – the 1986 Ferrari Testarossa Spider, created for Gianni Agnelli to mark his 20 years as chairman of Fiat. The exterior is delivered in a silver gloss, detailed with blue accents along the bodyside and aero wings in front of the rear wheels.

Battista Targamerica shares the crown as Italy’s fastest road-legal car with the Automobili Pininfarina Battista. It can

accelerate from 0-100 km/h in less than two seconds – faster than a Formula 1 car – and has a top speed of more than 300km/h. No more than 150 examples of Battista will be individually hand-crafted at the workshop in Cambiano.

Sale stalled

A rare 1958 Ferrari Coupe was all set to be sold at a Christie’s Paris auction this November. With its links to actress Angelina Jolie, it was initially estimated to sell for between ¤600,000 and ¤800,000, but it is understood that the vehicle was removed from the auction pending an investigation into its legal ownership, with plans for inclusion in a future sale.

One of only 353 models produced, the 250 GT PF Pininfarina is notable not just for its rarity but also for its luxurious red leather interior. The striking upholstery, complemented by gloss black accents, creates a visually captivating contrast that enhances

the car’s sleek design. The craftsmanship of the interior is further highlighted by classic black-and-white dials and a wooden steering wheel, evoking the elegance of the era's automotive design. With an odometer reading of just 6,424 miles, the car is in excellent preserved condition.

The Ferrari 250 GT is powered by a 3.0-litre V12 engine that delivers 217 bhp and was capable of reaching a top speed of 143 mph at the time of its release. This particular model has also been showcased at the prestigious Concours d’Elegance in Antibes, where its proportions and design attracted considerable attention.

Paolo Dellacha, CEO at Automobili Pininfarina, said: “This is a seminal moment, delivering our first coach-built one-off vehicle to a client. Battista Targamerica, like no other vehicle before, demonstrates the infinite possibilities our highly skilled team can design and engineer. Our world-class artisans have delivered something truly special – the first electric open top hypercar designed

specifically to a very exacting client’s own specification.”

Olivenleder

Automobili Pininfarina has been working with Olivenleder for many years; the plantbased tanning agent adds sustainability credentials to some of the world’s most sought- after vehicles. It is made from a vegetable concentrate based on an olive leaf extract. Traditionally, Mediterranean farmers have burnt the leaves after harvesting the olives, but Olivenleder provides them with an extra income source. The company is keen to point out it does not see traditional tanning methods as worse – simply that the Olivenleder produces a product of comparable quality with the added benefits of being made from a previously wasted material. The product is not “less harmful” it says, but is 100% biobased and circular.

In February, Italy-based leather chemicals group Silvateam bought a majority stake in Wet-Green, developer of the patented Olivenleder technology. Silvateam said the

new alliance would be “a new North Star” for sustainable innovation in the leather industry. “This partnership sends a clear signal to the industry: the future lies in sustainable, plantbased solutions,” it commented.

For the Battista Targamerica, Michael Jordan chose supple tan leather, with a black leather steering wheel and dashboard. The headrests are bespoke, featuring an embossed Automobili Pininfarina ‘F’ logo, alongside unique decor and design details.

A bespoke tailored luggage set has also been made, finished in the same tan leather as the upholstery and embossed with a Battista Targamerica silhouette – a reflection of Mr Jordan’s ‘jet- set’ lifestyle and proving how important leather is in imparting luxury at the highest specifications. Does he also know about the Olivenleder process? This part is unclear, but as Mr Lamparter says, “Even if he may not quite know what he’s sitting on ... well, it’s enough that I know.”

NEWS ROUND-UP

Champions of Best Practice

(LCA) for leather. This will ensure that hard data and continual improvement in our processes and systems best position us for a future continual in our processes and best us for a future where sustainability is a key driver for commercial decision making where is a driver for commercial decision making.

This ISP consists of four strands.

• The provision of the most accurate information about leather, sustainability and production.

• The championing of best practice at every point in the supply chain.

• The willingness to address the hard issues our industry faces.

• The sharing of information with members, manufacturers, consumers and the media.

Today we look at best practice.

U.S. Government environmental standards, and those of our supply chain’s animal care, rank among the world’s highest and assure buyers of U.S. hides and leather that they have been produced to exemplary standards in all areas including animal care, ESG and sustainability.

Building on our standards, we are now firmly established as one of the global champions of best practice. We accelerate the adoption of new standards and promote them in the U.S. and around the world.

Examples of recent industry developments championed by L&HCA, for example, reducing the use of water through the use of polymer balls, with an added benefit of speeding the tanning process.

Meanwhile filtration techniques have become more sophisticated and will easily remove chromium (III) for reuse. And evaporation is now being used for the removal of salt while coagulants can be added to the water which bind with waste to leave a sediment which can be safely disposed of.

Best practice does not stop at the border.

We do not just promote this framework domestically. We actively promote it worldwide. The more trusted leather is, from wherever it originates, the better it is for the U.S. leather industry and for the planet.

From trade communications to our global Real Leather. Stay Different. program reaching 100s of millions of consumers and influencers worldwide, our work today is repositioning leather as the material of choice for tomorrow.

Visit our website today to find out more USLeather.org

SLF partner meeting to address key industry challenges

The Sustainable Leather Foundation (SLF) will hold its Annual Partner Meeting on December 3, at the University of Northampton. The event will be available both in person and virtually, offering access to a broader audience.

The meeting will feature updates on the Foundation’s recent work and presentations on critical issues facing the leather industry. Key speakers include Gustavo GonzalezQuijano, Secretary-General of COTANCE, who will present findings from the "Pisa Study," exploring the impact of the EU Deforestation Regulation (EUDR) on leather production and trade.

Kevin Latner, Vice-President of the Leather and Hide Council of America, will discuss sustainable leather production, with a focus on waste reduction and science-based solutions.

Dr. Oluwaseyi Omoloso, Senior Lecturer at the University of Northampton, will introduce the Leathertrace Bangladesh project, aimed at implementing digital traceability systems to enhance sustainability in Bangladeshi tanneries.

Hans W.J. van Haarst, Corporate Director of ESG at SHV Holdings, will provide insights into preparing for CSRD and CSDDD compliance. He will discuss the challenges and opportunities these regulations present, stressing that compliance is crucial not only for large companies but also for smaller players in the supply chain.

Katie Kutskill,Business Operations and Strategy lead for the Is It Leather? global campaign, will also give a presentation addressing common misconceptions in the leather industry and how to better communicate the sector’s potential for sustainable growth.

The event is open to all stakeholders, including non-partners, providing

insights into regulatory changes and sustainability initiatives in the leather industry. Registrations are currently open.

Spoor nominated for Global Change Award

Traceable leather supplier Spoor has been nominated for the prestigious Global Change Award (GCA) 2025.

Dubbed “The Nobel Prize of Fashion,” the award, launched by the H&M Foundation in 2015, recognises changemakers driving innovation to decarbonise the fashion industry and create a socially inclusive and environmentally positive future.

The GCA aims to propel the textile industry towards net-zero emissions through sustainable solutions across four key areas: sustainable materials and processes, responsible production, mindful consumption, and groundbreaking wildcard innovations. Since its inception, the programme has awarded grants totalling ¤8 million to 46 innovative projects, with ¤200,000 granted to each of 10 annual winners.

Spoor expressed delight at the nomination, sharing their surprise and gratitude on social media. Winners of the 2025 Global Change Award will be announced in April.

Dr Martens posts half-year loss

Dr Martens reported a pre-tax loss of £28.7 million ($37.3 million) for the six months to 29 September 2024, down from a £25.8 million ($33.5 million) profit a year earlier, citing rising costs and weak U.S. wholesale revenue.

Despite the challenges, autumn-winter trading showed improvement across all regions, driven by strong direct-to-consumer sales and a refreshed marketing strategy. The company also accelerated cost-cutting, targeting £25 million ($32.5 million) in savings by FY26, mainly from job cuts, and reduced inventory and debt.

Maintaining its FY25 guidance, Dr Martens highlighted progress in its turnaround efforts and confirmed Ije Nwokorie as the incoming CEO from January 2025, succeeding Kenny Wilson. Mr Wilson noted promising signs ahead of the peak trading period.

Image shows the Dr Martens 1460 lace-up boot in soft leather.

University of Northampton and SLG win national KTP award

The University of Northampton, through its Institute for Creative Leather Technologies (ICLT), alongside the Scottish Leather Group, won the prestigious Technical Excellence award at the Innovate UK Knowledge Transfer Partnership (KTP) Awards.

The accolade recognises the university’s collaborative project with the Scottish Leather Group, which focused on using forestry industry waste to extract vegetable tannins for tanning and retanning processes.

The project advanced sustainability by replacing bisphenol-containing chemicals with bio-based alternatives and contributing to the development of ISO method 11936 for

bisphenol testing. This achievement highlights the university’s leadership in innovative and sustainable leather production methods.

The KTP Awards celebrate exceptional collaborations between academia and industry, showcasing impactful innovations across various categories.

Gucci expands leather production ownership

Gucci has acquired 100% of the Colonna Group, a key leather supplier, through its subsidiary Gucci Logistica.

The move increases its previous 51% stake, held since 2019, and includes three major tanneries: Marbella Pellami, Conceria 800, and Falco Pellami, all based in Santa Croce sull’Arno.

The acquisition aligns with a broader trend of luxury brands, such as Zegna and Prada, verticalising supply chains to enhance quality and sustainability. Gucci, with its long history of leather investments, aims to strengthen control over production processes, central to

QUAKER COLOR A STEP AHEAD IN AUTOMOTIVE FINISHING

its growth strategy.

This step also supports local craftsmanship and underscores the importance of direct supply chain management in meeting the evolving demands of the luxury market.

British Airways’ new first seat features leather by Muirhead

British Airways has introduced a new Firstclass seat, highlighting British craftsmanship and sustainability as part of its £7 billion ($9 billion) investment in customer experience.

The seat, set to debut in 2026 with the airline’s A380 retrofit programme, features leather supplied by Muirhead, a division of the Scottish Leather Group.

Muirhead, based in Glasgow, is known for producing low-carbon leather using locally sourced materials and sustainable manufacturing processes. The leather forms a key component of the seat, which has been designed to provide a modern luxury experience with features including a wider

Supplying innovative finishes to the automotive industry for over six decades
Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century

and longer seat, a 32-inch 4K TV, and enhanced privacy.

The project involves manufacturers across the UK and Ireland, with Muirhead’s contribution reflecting British Airways’ emphasis on quality, durability, and environmental responsibility in its cabin designs.

Funding secured for UK's first micro-scale vegetable tannery for hides

Cotmarsh Tannery CIC has been awarded funding to create the UK's first micro-scale vegetable tannery for cattle hides, alongside an educational space promoting regenerative systems in food, fashion, and craft.

The project is backed by the Farming in Protected Landscapes (FiPL) fund through the North Wessex Downs National Landscape.

This initiative builds on a decade of sustainable farming and craft innovation by founders James and Katie Allen. Their vision integrates farm-raised hides into ethical fashion and fosters education on regenerative

practices.

The FiPL funding, bolstered by local support and strong community backing, highlights the significance of these projects for the region and beyond. Cotmarsh Tannery CIC is now set to deliver transformative benefits for sustainable farming and crafts in the UK.

Leather helps Puma sustainable materials strategy

Sports company PUMA has been ranked in the highest "Leading" tier of the 2024 Material Change Index by non-profit Textile Exchange, recognising its sustainable materials strategy.

Out of hundreds of companies assessed, PUMA was one of just 11 to achieve this status, improving from the second-highest "Scaling" tier in 2023.

“We are very happy to be ranked as ‘Leading’ and will use this as an opportunity to further strengthen our materials strategy,” said Anne Laure Descours, PUMA’s Chief Sourcing Officer.

sourced from certified tanneries, and 99.2% of its cotton was certified or recycled. Nearly 65% of polyester came from recycled materials, and PUMA scaled up its use of recycled cotton and textile waste for products like football jerseys under its RE:FIBRE initiative.

The Material Change Index highlights progress in sustainable sourcing and circular practices, supporting the fashion industry’s goal of reducing greenhouse gas emissions by 45% by 2030.

COTANCE reissues appeal for conclusion of EU-Mercosur FTA

Europe’s leather industry representative body COTANCE has joined almost 80 associations to call on European Union authorities to conclude and ratify a proposed trade agreement with Mercosur.

After 20 years of negotiations, Mercosur and the EU reached agreement in principle on a free-trade agreement in 2019, but the terms of the agreement have not been finalised.

In 2023, 99.7% of PUMA’s leather was

Mercosur’s members are Argentina, Brazil, Paraguay and Uruguay. Seven other South American countries are associate members.

Addressed to the Presidents of the European Parliament, European Council, European Commission, and Hungarian Presidency of the Council and shared with the Mercosur Presidency, the statement highlights that over ¤159 billion in goods and services was traded between the EU and Mercosur in 2022, with mutual investments approaching ¤380 billion. Together, these economic ties underpin millions of jobs on both continents. The associations highlight the importance of the EU-Mercosur agreement, emphasising that it can help mitigate the challenges posed by geopolitical instability and supply chain disruptions.

The joint statement calls on policymakers to take immediate steps toward ratification, positioning the EU and Mercosur to advance their mutual competitiveness in a changing and challenging global landscape.

In January, COTANCE was one of 23 associations making a similar appeal.

Signatories also include Brazilian footwear manufacturers association Abicalçados, The European Automobile Manufacturers’ Association (ACEA) and the European Footwear Confederation (CEC).

Scholarships for environmental law master’s programme

TheVeneto region tanning cluster Il Distretto Veneto della Pelle in collaboration with Acque del Chiampo Spa Società Benefit and Ca’ Foscari University of Venice, has announced two scholarships for the 27th edition of the First Level Master’s Degree in Environmental and Land Law. Each scholarship, valued at ¤3,800, covers the full cost of tuition.

The programme, offered by the Department of Economics at Ca’ Foscari University, focuses on constitutional, administrative, environmental, and territorial law, providing practical tools for managing environmental

challenges. Applications are open until 16 January 2025.

According to Acque del Chiampo, the scholarships aim to support advanced training in sustainability, with the programme preparing graduates for roles in consultancy, public administration, and environmental management.

Quimser continues ZDHC progress Spanish leather chemical manufacturer

Quimser has achieved Level 3 certification under the Zero Discharge of Hazardous Chemicals (ZDHC) programme in 2024, following its Level 1 certification in 2022 and successful completion of Level 2 requirements.

This certification ensures compliance with the Manufacturing Restricted Substances List (MRSL) version 3.1, confirming that Quimser’s products meet safety and environmental standards set by the ZDHC initiative.

Quimser told Leatherbiz that they are continuing to research new raw materials with natural origins to develop more ecological alternatives. The company is also focusing on increasing product competitiveness and quality, aiming to offer its products to LWG tanners. This involves making a significant investment but is seen as essential for business growth in a slow and challenging market. Additionally, Quimser is working to streamline its product range to enhance production efficiency and reduce resource consumption, including electricity, gas, and petrol.

Sales demonstrate strong demand for ‘exceptional handbags’ Auction

group Christie’s presented two online sales of luxury handbags: Unlocking the Orange Dream: Handbags From an Important Private Collection, featuring a European private collection of 200 pieces, primarily by Hermès, and Handbags Online: The Paris Edit, offering a curated selection of Hermès bags alongside iconic pieces from brands including Chanel, Louis Vuitton and Dior.

Together, the two sales achieved nearly ¤5 million, with a 98% sell-through rate, including 67% of lots surpassing high estimates. The sales attracted 532 buyers and bidders from 49 countries.

The highlight of this series was Unlocking the Orange Dream, which achieved in ¤2.6 million. This marked the third collection sale organised by the Handbags & Accessories department at Christie’s, and the second one held in Paris. It showcased the exceptional quality of the pieces and the growing global demand for high-end handbags.

Additionally, Handbags Online: The Paris Edit also performed strongly, totalling ¤2.4 million. These sales saw great success with an international audience, drawing 874 registrants and 171 first-time participants.

Lucile Andreani, head of handbags and accessories at Christie’s Europe and Middle East, said: “The strong results of these two

sales, both in terms of sell-through rates and the number of registered bidders from around the globe, highlight the growing enthusiasm for exceptional handbags.”

Tuscan leather suppliers the focus for Kering’s water targets

Luxury group Kering claims to have become the first company globally to adopt science-based targets for land and freshwater after participating in a year-long pilot with the Science Based Targets Network (SBTN).

Encompassing the group’s direct operations, including Kering-owned tanneries and factories and upstream suppliers, its first freshwater quantity target initially focuses on the Arno basin in Tuscany, where most of the group’s tanneries and supplier tanneries are located.

For the SBTN pilot, Kering used its in-house environmental impact assessment tool, the Environmental Profit and Loss account (EP&L), to assess upstream pressures on nature, added to water scarcity and water use pressure and biodiversity data from outside sources.

The group has now set a target to reduce water use in the Arno basin by 21% by 2030. This target applies to both the group’s direct operations and its suppliers.

Kering is preparing to set similar targets for other material basins, as part of its water strategy, which will be unveiled in the coming months.

The group has also said SBTN has provided an opportunity to strengthen Kering’s existing deforestation- and conversion-free commitments, notably to include more detailed land use change assessments associated with the group’s sourcing of leather. It will also focus on promoting regenerative practices and enhancing biodiversity in sourcing regions, including Olive Leaf’s Grass project, focused on sheep wool and leather in South Africa.

The group said: “The substantial work Kering dedicated to the pilot enhances the group’s Biodiversity Strategy and enables the setting of ambitious, science-based targets. SBTN’s focus on localised impacts and targets has encouraged Kering to think more about

place-based measures and strategies, which will now feature more prominently in its strategies going forward.”

Kering owns Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735 as well as Kering Eyewear and Kering Beauté. In 2023, Kering had over 49,000 employees and revenue of ¤19.6 billion.

Dr Luis Zugno appointed Chair of Leather Naturally management board

Dr Luis Zugno has been named Chair of the Leather Naturally Management Board, succeeding Debbie Burton, who steps down after six years of service.

Luis, who joined the board in 2020, has led educational initiatives, including the widelyused Guide to Modern Leather Making. He brings over 30 years of leather industry experience and currently serves as Global

Innovation Manager at Buckman International and Executive Secretary for IULTCS.

Outgoing Chair Debbie Burton expressed gratitude for her time on the board, highlighting collaborative achievements like updates to bovine leather data in the Higg MSI. She urged continued support for Leather Naturally’s educational mission.

Dr Zugno commented, “It’s an honour to lead this organisation. Thank you to our members and supporters for their dedication. Keep tanning!”

A replacement for the vacancy left by Debbie Burton will be announced soon.

Ford to cut 4,000 jobs in Europe

Automotive group Ford has announced it will cut 4,000 European jobs, citing weak demand for electric vehicles (EVs), insufficient government support, and competition from subsidised Chinese rivals. The layoffs, representing 14% of its European workforce, will primarily affect Germany (2,900 jobs) and

Britain (800 jobs) by 2027.

Ford Europe’s Peter Godsell said high costs and declining EV demand require “decisive action” but warned of potential further cuts if conditions worsen. German unions oppose the plans, calling for talks and threatening industrial action.

The move comes as Ford faces a 17.9% drop in European sales this year and calls for improved EV incentives and charging infrastructure. The restructuring follows earlier cuts and the upcoming closure of its Saarlouis plant in 2024.

Assomac prepares for 2024 general assembly

Italy’s tanning and footwear technology manufacturers’ association Assomac will hold its 2024 general assembly in Milan on November 29, with the city Museo delle Culture as the venue.

Following a private session in the afternoon, an open event will take place in the late afternoon and evening.

Following speeches by current Assomac president, Maria Vittoria Brustia, and other senior figures from the organisation, there will be a keynote from author and Massachusetts Institute of Technology fellow Cosimo Accoto.

Senior appointments at LVMH

Luxury group LVMH has announced a change to the job title of its chief people officer, Maud Alvarez-Pereyre. On December 1, she will become executive vice-president for human resources. She will also become a member of the group’s executive committee. Ms Alvarez-Pereyre joined LVMH in 2004 and has held a range of senior roles in human resources across its brands.

It has also announced that Cécile Cabanis will become the group’s chief financial officer on February 1, 2025.

Ms Cabanis arrived at LVMH earlier this year. She joined as deputy finance director after a long career in senior finance roles at consumer products group Danone.

Recycling leather waste through 3D printing

TheECOFAP project is tackling the challenge of recycling leather scraps from footwear manufacturing, much of which is currently sent to landfill.

Led by AIMPLAS, the Plastics Technology Centre, in collaboration with Pikolinos, Evatalking, and the Footwear Technology Centre of La Rioja (CTCR), the project is supported by Spain’s Ministry of Science and the EU Next Generation funds.

Spain’s Valencian Community, which produces 65% of the nation’s shoes, generates approximately 3,500 tonnes of leather waste annually. ECOFAP aims to transform this waste into new materials for use in 3D printing, particularly for footwear components like soles and heels. This approach aims to reduce waste, lower the industry’s carbon footprint, and aligns with increasing demand for customisation in manufacturing.

The project focuses on breaking down leather scraps into particles smaller than 10 microns, enabling them to be combined with polymers to produce 3D-printable filaments. This process, though technically demanding due to the elastic nature of collagen fibres in leather, represents a significant step towards sustainable innovation in the footwear sector

Industry leaders urge ongoing caution over EUDR

After the announcement that the European Parliament voted on November 14 to approve the proposed postponement of the European Union Deforestation Regulation, industry leaders have said leather-sector companies still need to keep a watchful eye on the situation.

On October 2, the European Commission proposed postponing the application of EUDR for 12 months. This would mean the traceability obligations that EUDR will impose on tanners and hide traders in the European Union would apply from December 2025 for large companies and from June 2026 for smaller ones.

The European Council, which consists of senior ministers from all 27 member states of the European Union, met on October 16 and agreed to the proposal. This seemed to leave the vote in the European Parliament as the only remaining hurdle to negotiate before confirmation of the extra 12 months’ preparation time for EUDR.

The Commission, the Council and the Parliament are the three executive bodies of the European Union. The Commission proposes legislation, the Council and the Parliament approve it and then the Commission implements it.

In the case of EUDR, the positive vote in the Parliament on November 14 appears, potentially, to have triggered an extra complication.

This centres a new proposal that should make EUDR implementation easier for companies sourcing from suppliers in countries where deforestation is not a problem. The suggestion is that there should now be a new category of countries that pose ‘no risk’ of deforestation in addition to the previously announced categories of ‘low’, ‘standard’ and ‘high’ risk.

Because this is new, it requires further discussion among the three bodies. Contacts in the European Commission have told World Leather that the key is to draw up a formal text for the ‘no-risk country’ proposal and for the Council to approve this extra idea. Because of this, there are now concerns about this work taking place before the original EUDR deadline, December 30 this year (for larger companies).

Leather industry leaders have said companies need to continue paying attention to this because there is a chance that time will run out before the formal approval process for the postponement is complete. And there is a chance EUDR could come into application before 2025 after all.

Stahl divests wet-end leather business

Manufacturer of speciality coatings for flexible materials Stahl has announced the sale of its wet-end leather chemicals business to Syntagma Capital, a private equity firm based in Brussels. The divestment includes the transfer of 428 employees, the complete wetend portfolio, and manufacturing facilities in Italy and India.

The transaction is expected to close in the first half of 2025, pending regulatory approvals.

According to Stahl, this sale aligns with its strategy to focus on speciality coatings. Founded in 1930 as a leather finishing company, it has since diversified into coatings for various flexible materials. It has made recent acquisitions in packaging coatings in North America and Europe.

CEO, Maarten Heijbroek, has said the move will allow Stahl to enhance its innovation and sustainability efforts. Leather finishing remains

integral to Stahl’s business, now led by Andrea Ceretta as group director for leather finishing. The divested unit will operate independently with Xavier Rafols as its CEO. It will focus on leveraging the expertise that Stahl has built up in the leather industry, with an emphasis on innovation and sustainability.

ASIA

Urgent call for safety training in Savar tanneries

Arecent

study on the Savar BSCIC Tannery Estate has called for mandatory safety training to address critical gaps in worker safety. Many workers lack adequate Personal Protective Equipment (PPE) and awareness of proper protocols, increasing risks of chemical burns, respiratory issues, and injuries.

The study, presented at a discussion organised by the Centre for Policy Dialogue

12 - 14 MARCH 2025

(CPD) and Friedrich-Ebert-Stiftung (FES) Bangladesh, recommends practical safety training, regular assessments, and refresher courses. It also highlights the need for stronger regulatory oversight, better waste management, and safer machinery.

Dr Khondaker Golam Moazzem of CPD noted that despite global growth in the leather market, Bangladesh’s leather exports declined by 1.74% in FY2023. Keynote speaker Tamim Ahmed stressed that improving worker safety is vital for reducing hazards, protecting workers, and enhancing sector productivity and competitiveness.

Pulcra chemicals hosts Indonesian workshop

Pulcra Chemicals, in collaboration with its partner Karyawiosa, recently hosted a twoday leather training workshop at Politeknik ATK Yogyakarta in Indonesia.

With the guidance of Pulcra’s expert Ali Çelik, the event focused on advancing sustainable practices and fostering innovation in leather processing through education and collaboration.

The workshop provided a platform for 48 participants, including students, teachers, and tannery professionals, to explore new approaches to sustainable leather production. Hands-on trials centred on shoe upper manufacturing encouraged participants to think beyond conventional methods and critically assess chemical usage in leathermaking processes.

As part of the initiative, 18 students will now begin year-long practical training in tannery factories, gaining real-world experience in applying sustainable techniques. An additional group of 20 first-semester students is set to join this programme next year.

Pulcra Chemicals views this workshop as a significant step towards preparing the next generation of leather professionals. By equipping students and industry stakeholders with the skills and knowledge to innovate responsibly, the initiative reinforces the company’s commitment to shaping a sustainable future for the leather industry.

Apex Tannery signs new agreements with footwear exporters

Bangladesh-based Apex Tannery Limited has announced plans to renew agreements with three footwear exporters— FB Footwear, Footbed Footwear, and Nuovo Shoes (BD)—to supply finished leather. The company expects these deals to bring in annual sales of around $132,800 (Tk16 crore).

While the new agreements show promise, Apex Tannery continues to face challenges, with its latest financial results showing losses similar to the previous year. The company has also decided to distribute a 5% cash dividend to its general shareholders, amounting to $59,787 (Tk72.03 lakh), while sponsordirectors will not receive payouts.

Founded in 1976, Apex Tannery is an exportoriented business, supplying leather to markets in Europe, China, and South America.

Leather could benefit from COP29 methane declaration

Secretary of the International Council of Tanners, Dr Kerry Senior, has said he spent an interesting and busy couple of days at the COP29 United Nations Climate Change Conference in Azerbaijan in late November.

He said afterwards that there had been a keen focus in the discussions he witnessed on financing for adaptation and mitigation in the agri-sector. One specific objective to come out of these discussions is a new commitment to reducing methane emissions from organic waste, and in particular from food waste. Food waste accounts for 20% of all methane emissions, delegates heard.

Thirty nations endorsed a new declaration committing to tackling this. The 30 signatories represent 50% of global organic waste emissions. Among the comments was the idea that lowering methane emissions can be “our emergency brake in the climate emergency”.

Dr Senior commented: “The impact of these policies for leather remains to be seen. Livestock will be an obvious target for reducing methane emissions. But minimising organic waste emissions may draw attention to the issue of hide disposal and the need to maximise their use. What better way to do that than to produce leather?”

This message ties in perfectly with new analysis that the Leather and Hide Council of America has carried out of the environmental footprint of hides that go to waste. In a detailed article on the subject in the new issue of World Leather, LHCA senior vice-president, Kevin Latner, explains that previous calculations on the impact of abandoned, unused hides are hugely inaccurate.

Previously, there was acceptance that one tonne of wasted hides would generate emissions of around 850 kilos of CO2equivalent. His new analysis suggests the true figure would be 13,000 kilos. He also suggests that as many as 130 million hides may go to waste every year. “Choosing not to turn those hides into leather generates emissions of more than 40 million tonnes of CO2e per year,” Mr Latner says.

Dr Kerry Senior has said the leather industry must find a way “to have its voice heard and to have policy-makers understand the climate positive benefit of avoiding hide waste”.

He has called for senior representatives of the global leather industry to work as hard as possible to put this message across to political and business leaders at the next COP conference.

COP30 will take place in 2025 with Belem in Brazil as the host city.

Bangladeshi shoe manufacturers hopeful of rebound

Exports of shoes from Bangladesh between July-October reached $229 million, 9% more than in the same period last year, according to the country’s Export Promotion Bureau (EPB).

Omar Faruque, company secretary of leather footwear exporter Apex Footwear, told

local paper The Daily Star that orders from the US and Japan had increased, and this trend is likely to continue.

The paper claimed some brands are shifting manufacturing from China due to rising production costs there.

Nasir Khan, managing director of manufacturer Jennys Shoes, added: “We are hopeful that the rising trend in leather footwear exports will continue if the interim government cooperates and removes export issues like unnecessary licensing and certification each year.”

AMERICAS

Revamped leadership aims to steer Michal Kors to growth

Capri Holdings, owner of Versace, Jimmy Choo and Michael Kors, has reorganised its leadership so group CEO John Idol will become CEO of Michael Kors and Philippa Newman will be promoted to chief product officer.

Ms Newman joined Michael Kors 14 years ago and is currently president of accessories and footwear.

In the new role, she will oversee merchandising, production, licensing and design across all product categories, in partnership with chief creative officer Michael Kors.

She said: “I am confident that by consolidating design, merchandising, production and licensing under a unified team we can more effectively execute our strategies, including delivering more targeted product to different consumer cohorts, in order to return Michael Kors to growth.”

Mr Idol said: “This reorganisation reinforces Michael Kors’ plans to engage and energise both new and loyal consumers, create exciting fashion and core products with compelling value, improve store productivity and return our wholesale business to growth.”

Earlier this month, Capri and Tapestry’s merger was blocked by the US Federal Trade Commission, which said it would be bad for consumers. Tapestry has agreed to reimburse Capri Holdings for expenses incurred to the tune of around $45 million.

‘No winners’ as Trump promises big tariffs

Incoming US president Donald Trump has said he will impose 25% tariffs on goods coming from Mexico and Canada from his first day in office (January 20), as well as an additional 10% (at least) on China.

Automotive leather tanners could be affected: many carmakers and manufacturers assemble cars and make components in Mexico, which are then sent over the border to be finished or sold in the US.

Figures from the Mexican Automotive Manufacturers Association show the combined exports to the US from the top 10 carmakers totalled around 1.3 million vehicles between January and July this year.

When Trump was last in power, he imposed

high tariffs on China, which retaliated with similar tariffs; these have mainly stayed in place.

In 2022, the Footwear Distributors & Retailers of America asked the Biden administration to repeal tariffs on Chinese footwear to give relief to the household budgets of US families. Around 70% of US shoes are from China, with measures costing US consumers an additional $7 billion per year, it said at the time.

The Leather and Hide Council of America (LHCA) has also previously called for a review of trade policy with China and to remove tariffs on exports and imports between the two countries.

In the first nine months of 2024, China imported 710,000 wet blue hides from the US with a value of $67.5 million.

A Chinese embassy spokesperson told Reuters that “no one will win a trade war or a tariff war”.

Zschimmer & Schwarz Brazil Achieves ISO 14001 Certification

Zschimmer & Schwarz, a supplier of leather auxiliaries, has achieved ISO 14001 certification for its operations in Brazil.

This certification, an internationally recognised standard for environmental management systems, demonstrates compliance with environmental regulations and the implementation of measures to reduce environmental impact and improve resource efficiency.

ISO 14001 provides a framework for organisations to enhance environmental performance, optimise resource use, and promote sustainable practices. This achievement reflects Zschimmer & Schwarz Brazil’s adherence to the standard's requirements and its efforts to align operations with sustainability goals.

Amazon hailed as saviour for USmade leathergoods company US-based leather jacket brand Reed Leather has unveiled its latest collection of coats, biker wear and accessories, featuring “butterysoft leathers that are as durable as they are luxurious”.

Reed Leather’s story began in 1950, when Holocaust survivors Mr Silver and Mr Reed arrived in Detroit with a vision to build a better life. Starting in a basement workshop with their wives, they turned their leatherworking expertise into a flourishing business. Their first big break came when a buyer placed an order for 300 jackets.

Reed grew to supply leather jackets to over 11,000 retailers at its peak, running two fullscale factories and employing hundreds of workers.

However, the rise of fast fashion and economic turbulence in the early 2000s posed significant challenges for Reed. Determined to preserve the company’s Detroit roots, CEO Nati Mazor partnered Amazon to connect directly with customers. The company downsized operations but kept some of its manufacturing in Detroit, whilst other

products are imported to reduce the pricepoints.

“Amazon gave us the platform to showcase our products to a global audience while staying true to who we are,” said CEO Nati Mazor. “Buying leather online is not easy, you need a lot of trust. I think Amazon gave us that trust so that customers felt confident. It’s allowed us to grow without losing our soul or our commitment to Detroit.”

Kiss the Ground increases grants to boost regenerative agriculture

Kiss the Ground, nonprofit championing regeneration and soil health, has announced $500,000 in farmer grants to help them to transition to regenerative practices.

The initiative, the largest in the US-based organisation's 11-year history, also aims to connect consumers to food and farms through storytelling and marketing.

Evan Harrison, Kiss the Ground CEO, said: "Since 2013, we've built strong, direct relationships with farmers passionate about regenerative agriculture. Now, we're bridging this gap by amplifying farmers' voices through storytelling and providing crucial financial support. This approach is vital to our impact, driving the transition of millions of acres to regenerative practices and creating lasting change in our food system."

Kiss the Ground works with 100 farms in the US and encourages consumers to support local regenerative agriculture.

PrimeAsia reports sustainability progress

for 2023

Leather

manufacturing group PrimeAsia’s 2023 Sustainability Report outlines its progress and challenges in advancing sustainable practices within the leather industry.

With manufacturing facilities in China and Vietnam, the company achieved a 43% reduction in water usage over five years, saving more than 425 million litres in 2023. Recycled water usage reached 60%, aided by investments in water treatment systems and rainwater capture initiatives.

The report also highlights the establishment of a corporate carbon footprint baseline of 303,649 tonnes of CO2 equivalent, which will inform the development of Science Based Targets.

While it did not meet its energy efficiency goals due to market conditions and disruptions, its Vietnam facility sourced 64% of its energy from renewable sources, including solar panels and biofuels, with plans for further expansion in 2024.

Efforts in waste management included diverting hazardous waste to recycling plants and piloting projects to repurpose leather scraps into recycled materials. The company also contributed over 3,000 hours to community service activities, such as environmental clean-ups and social support initiatives.

PrimeAsia’s sustainability strategy, "Sustaining Excellence, Preserving Tomorrow," focuses on operational excellence, circularity,

climate action, and social impact, with targets such as achieving full supply chain traceability by 2030.

Reflecting on these efforts, CEO Jonathan Clark stated, "Sustainability is not just a buzzword; it is a core component of our operational ethos and a key driver of our success." The report underscores PrimeAsia’s commitment to balancing environmental innovation with industry leadership and community engagement.

MethaneSAT data reveals higher emissions levels

Preliminary data from MethaneSAT, a satellite designed to monitor methane emissions, has revealed significantly higher emissions from key oil and gas production basins than previously reported.

The images, which cover regions including the Permian, Uinta, and Appalachian basins in the US, as well as basins in Turkmenistan and Venezuela, highlight emissions from both large and smaller, dispersed sources often missed by other satellites.

The data shows that methane emissions in the Permian Basin are at least nine times higher than the industry's 2030 target for methane loss reduction. In the Uinta Basin, where infrastructure is older and more prone to leaks, methane emissions were observed to be approximately 9%, a rate ten times higher than that in the Appalachian Basin.

These findings are in contrast to existing methane inventories, with emissions in the Permian Basin observed to be three to five times greater than estimates by the US Environmental Protection Agency (EPA) in their 2020 inventory. Similarly, emissions in the South Caspian Basin were found to be more than 10 times higher than reported in the 2022 EDGAR emissions database.

Total emissions in the observed regions range from 50 tonnes per hour in the Uinta Basin to 420 tonnes per hour in the South Caspian, surpassing estimates in both US and global databases. This highlights the need for more accurate methane tracking in the oil and gas sector.

McDonald’s and partners aim to reduce cattle’s impact

McDonald’s USA and Lopez Food are aiming aim to reduce the greenhouse gas emissions released per pound of meat produced by using a seed from agricultural technology firm Syngenta.

Enogen corn increases feed efficiency in cattle and thereby helps reduce emissions intensity compared with other corn, according to Syngenta.

The seed contains an enzyme that quickly converts starch to usable sugars, delivering more available energy to cattle while being easily digestible, it added.

Justin Wolfe, president of Syngenta Seeds, said: “We’re convinced improving the sustainability of the global food system can be accelerated through innovation and collaboration.”

Solar energy success for Ecuadorean tannery

Aleather manufacturer in Ecuador, Curtiduría Tungurahua, has begun using renewable solar energy.

The company, based just outside the city of Ambato, launched a project to instal solar panels of the roof of its tannery in August 2023. It announced on November 16 that the renewable energy plant was already working, providing power to its production team.

Chief executive, Gonzalo Callejas, explained that the solar energy project was “a significant milestone” in the company’s wider sustainability strategy. But he added: “The main motivation for installing solar panels is independence. At the moment, we are totally dependent on the services and facilities that the state makes available to us.”

He said that Curtiduría Tungurahua has calculated that the solar energy project would allow it to lower its greenhouse gas emissions by approximately 2,500 kilos of CO2equivalent per year.

AFRICA

Small-scale farmers could benefit from JBS’s Nigeria deal

Food and tannery group JBS has signed a memorandum of understanding (MoU) with the government of Nigeria to invest in developing supply chains for food production.

The Brazilian group will invest $2.5 billion over five years. The agreement outlines the construction of six plants: three for poultry, two for beef and one for pork.

JBS said it will try to develop local supply chains, providing support to small producers and promoting sustainable agricultural practices.

Nigeria’s population is expected to reach 400 million by 2050, up from its current 250 million, according to the United Nations.

OCEANIA

Australian beef industry predicts windfall from US shortfalls

The US cattle herd has shrunk this year, with lower slaughter creating a shortfall in lean beef in the American market.

Industry body Meat and Livestock Australia said the fact the US herd is at its lowest level in decades has opened up opportunities for exporters.

From January to October, US cow slaughter declined 15% to total 4.7 million head. Heifer slaughter remained constant at 8.3 million head. As well as creating demand for increased beef from overseas, if the US reduces its beef exports, this could also mean its traditional markets, such as Japan and China, will look elsewhere for product, it suggested.

Tim Jackson, MLA global supply analyst, said: “Although it is unclear when rebuilding will commence in the American cattle herd, it’s clear that movements in the herd will have global impacts. This could potentially reduce global supply and provide opportunities for Australian exporters.”

Australian cattle herd destocking

with record slaughter rates

Australia's cattle herd is officially in destock, with the female slaughter rate reaching 52.2%, according to ABS data analysed by Meat & Livestock Australia (MLA). Last quarter’s slaughter hit 2.24 million head, the highest since 2015, with national rates up 6% from the previous quarter and 17% year-onyear.

MLA’s Stephen Bignell attributes the destocking to herd stabilisation after years of rebuilding, with producers reducing older breeding cows.

Beef production set a quarterly record of 690,694 tonnes, up 7%, supported by improved carcase weights averaging 308.2kg. Producers earned $4.26 billion for slaughterready cattle, the highest on record. Slaughter is on track to meet MLA’s 2024 projection of 8.18 million head.

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