Excellent –Bisphenol optimized syntans to achieve high leather quality
experimentation and creativity, is in many areas redundant with the legislation already in force and therefore acts as a brake-pad.
Leather manufacturing companies in Europe that seem always to have a new audit looming in the minds of its employees and, at the same time, to prioritise standard industrial processes over flexibility can hardly survive in global competition. Nevertheless, even in these leather manufacturing companies there are many who support certification and see it as an effective means of improvement. But if certification brings efficiency gains that fall short of the associated cost increases, then some serious thought is needed.
To avoid any misunderstanding: certifications and legal requirements are not the only problem, but must also be seen in context. If all certifications were abolished and the legal requirements and bureaucracy relaxed, it would not solve the European leather industry’s problems tomorrow. The damage is simply already far too great and can no longer be changed quickly. Rapid changes could only come about if there were parallel developments in competing overseas markets that could bring the European leather industry back onto an even footing.
In addition to the problems in the leather industry itself, we also have to deal with a supply chain problem. A sharp decline in leather processing and weak sales markets in Europe have at least the same negative impact on the chain, which means that at the moment the leather pipeline in Europe can only be summarised as follows: Murphy’s Law applies! Murphy’s Law states that everything that can go wrong will go wrong.
For the raw materials markets, this means that the current downward spiral will continue. The large producers are still trying to counteract the trend with a fragmented sales policy. This means defending prices for the better qualities in specific markets and for customers with special characteristics, and seeking interim solutions (storing, for example) for surpluses in production, rather than trying, through pricing, to place the goods on the markets. For lower-quality categories, production into collagen is the order of the day at the moment.
In Europe in particular, the supply bottleneck for lime splits has opened up this alternative market. In fact, it changes relatively little. Previously, the leather industry bought hides for leather production and gave the splits to the collagen industry and now the system is simply reversed with slightly different signs and the fact that a large proportion of the hides are only worked up to the liming stage and then leave the production chain. For the hides that still have to be split for the special sections of the collagen industry, a use for the grain must be found. If no use can be found for the leather, there are still the options of gelatine or biomass. In any case, the hides have been processed and disappeared physically from the market for the time being. In addition to the surplus
from the current high level of slaughter, it is said that many salted, old goods are also being disposed of.
The big question now is how long this channel will remain open. The question arises because rumour has it that large quantities of salted splits from South America are on their way to Europe and will arrive here at the beginning of 2025. This would close the short-term supply gap for the time being and the demand for splits here in Europe would at least be covered for the time being. Without an improvement in the demand for leather, this would lead to an oversupply of goods in Europe again.
Basically, we would then be back at a similar point to 2008 and during and after the coronavirus crisis. At these times, we also had a similar market situation and historically low prices. Each time, it was optimism and the large production capacity in China that took the opportunity to secure cheap raw materials, support prices and bring the markets back into a certain equilibrium. Without a general increase in demand for leather and without the use of the production capacity in China, it is difficult to see a trend reversal in the foreseeable future. One question remains unanswered, namely whether the alternative use of cowhides in other areas can relieve this supply pressure.
We do not need to talk about the split market at this point. We have already explained the special situation above. In China, prices for lime splits are currently falling, whereas the market for wet blue splits remains stable at low levels
The situation on the sheepskin market is also currently not eventful. We are hearing from China that there is definitely interest in lamb and sheepskins, but only at very low and non-cost-covering prices. The issue here is not so much the production of leather, but rather the recovery of wool, as prices for coarser wool have recovered significantly in recent months. However, one problem remains: even for this raw material, it is not possible to achieve cost-covering revenues for the producers.
There are only two weeks left until the end of 2024. Of course, war and the resulting misery are much more important than developments in the leather market, but it has to be said that overall this does not end on a particularly positive note. For many leather producers, it has been a year of disappointment and great difficulty, and the hopes repeatedly expressed for an improvement have not materialised in most cases. Many will probably use the break over the holidays to think intensively about alternatives for the future. We will also be checking whether we have overlooked anything in recent months that could dispel our fundamental concerns.
US PERSPECTIVE
Sales of cured cattle hides for the period ending December 5 were 255,000 pieces.
Actual Slaughter Under Federal Inspection
* The Thanksgiving holiday in the US was on November 28, 2024, and on November 23 the year before.
The figure for exports of wet blue was 68,300 pieces.
The most recent reports on hide prices showed Colorado branded steers weighing 64-66 pounds at $20 per piece, and heavy Texas steers weighing 60-62 up by $1 to $18 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 south-
west 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
This week began with more surprises. Packers bought cattle in Iowa for $195.50 live – up by $0.50 from last week’s top. Futures fell after a strong opening. Little or no
information supported the sell-off. Some suspect traders are sceptical that box prices can hold in a post-holiday environment. Cattle owners in the south will attempt to gain parity with the north this week. Show lists in all regions were sharply lower but packers will be buying for a holiday-shortened Christmas week.
The cut-out opened the week posting continuing gains. Holiday demand is good and the box prices seem on firm footing. The grind will receive less attention and the middle meats will be more in demand. Ribs are posting new highs for the year. Next week retailers will gauge clearance on the shelves and plan for restocking following Christmas in preparation for the New Year.
The runaway demand of the past few weeks seems to have tempered. Many people could not make the numbers work and pulled out of the overheated market. Moreover high prices attracted a lot of cattle to the markets. Some of the calves planned for the market next year were marketed early. The sudden
change had been driven by new grazing opportunities following generous rains. The jump in calf prices has caused some operators to opt out of this year’s stocker programme and take cattle in for grazing. Squeezed margins at the stocker level have opened negotiated pricing for the grazing that is running from $0.65 cents to $0.85 cents with care sometimes included and sometimes not.
Cattle inventories in the feedyard are at a 25-year high but as short supplies of replacement evolve, the competitive environment will leave some pens empty.
Imports of cattle from 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 closure of the border. This anxiety is joined with unclear plans for tariffs on imported cattle from Mexico. The implications for flows from Mexico is not a huge number but is 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. Border officials promise a restoration of normal crossings by year end.
Corn prices were flat. Grain dealers are now pricing off the March contract. Corn has moved to $4.40 where it has found a ceiling and has difficulty breaking through to the upside. The barrier is early estimates of more corn acreage this coming spring. Corn basis levels in Guymon, Oklahoma, are at $1.10, basis the March contract.
GERMAN PERSPECTIVE
This week: Anyone who still needed proof of the difficulties in the leather industry was once again provided with sufficient facts last week. Of course, other geopolitical events took centre stage and overshadowed the banalities of day-to-day business. Nevertheless, this could not be used as evidence of calm in the market.
Even though every year in December companies tend to be preoccupied with the break for the holidays and preparations for the year-end results, it is noticeable this year that the slowing down has happened earlier and is more intense than usual.
There is a general sense of worry everywhere and most conversations are not centred on the issue of raw material procurement, but rather on the concerns that many have for the coming year. A recovery in leather demand is not expected for the coming months, at least in Europe, and this means that the question of planning production is becoming more difficult from week to week.
Further reductions are hardly possible, for purely technical reasons, and many leather manufacturers are reporting that with the current level of orders, no further raw materials will need to be purchased or processed for some time. The current stocks are sufficient for the time being. This is simply not possible in many factories, which is why there is still a basic demand.
However, it is also true that there are already some companies that have spoken out against further production of raw materials for the first few weeks of 2025. The solution that some believe they have found is the current demand for raw material for the collagen industry. Owing to the reduced regular production for the leather industry, which normally ensures the supply of this sector with the split, alternatives had to be found at short notice. As was the case a few years ago, the processors of splits for collagen are now acting as buyers for bovine hides.
Some suppliers see this as a welcome opportunity to clear stocks of questionable quality and others to avoid the need for salting, storage and market risk. The only question that remains is how long this demand will be maintained and how quickly and to what extent the split raw material can be sourced from other regions. In any case,
LATEST HIDE AND SKIN PRICES FROM GERMANY
the current quantities that are being processed for these purposes in the short term are quite remarkable and take some quantities off the market.
Real business in the leather industry was extremely quiet last week. There were various bids from Asia, but these were far below the current market prices. However, any negotiation on prices was doomed to failure and sales here were therefore almost negligible this week. Interest was once again focused on the heavier goods in which, even in China today, the best calculation can be found in the total revenue for split and leather.
The kill: At least we can report normal levels in beef production. The kill remains very high and, owing to the Christmas holidays, we expect production to remain high for another week. Many slaughterhouses are also using this year to give their employees a longer break.
What we expect: We can’t really think of anything that could move the markets in the coming weeks. Buyers will certainly only be interested in really attractive offers or opportunities and the rest really don’t seem to have any interest in major changes until the end of the year. This is certainly no way to escape reality, but it is highly unlikely that any great rush would change anything. At some point in the first few weeks of the new year, we will have to seriously analyse the markets, because it is not really about a week or a month, but about the real balance between supply and demand for the first half of 2025. There are indications that we will have to deal with a situation that has never been seen before in history. This will probably lead to far-reaching changes in the structure of the hide and leather business.
NEWS ROUND-UP
Hat trick and more for Boxmark
At the end of November, Boxmark Leather's three fully integrated leather production facilities located in Argentina, Feldbach, and Jennersdorf underwent an audit by the Leather Working Group (LWG) and received the "Gold" certification. This certification acknowledges their compliance with high standards in ecological and resource-efficient leather production.
Additionally, the company has been
shortlisted for the Crystal Cabin Awards. A joint entry by Boeing, Adient Aerospace, Botany Weaving, and LanzaTech featured Boxmark leather, which is recognised for its sustainable leather innovation that helps reduce the environmental footprint of aircraft interiors.
The 2025 Crystal Cabin Awards shortlist includes over 50 entries across seven categories. The awards, held on 8 April 2025 in Hamburg during the Aircraft Interiors Expo, recognise innovations that improve passenger comfort, safety, efficiency, and sustainability in aviation.
Next destination for Blazy will be Chanel
Bottega Veneta’s announcement that it has appointed Louise Trotter as its new creative director, replacing Belgian designer Matthieu Blazy, almost coincided with an announcement from Chanel that Mr Blazy is to become the artistic director for its fashion business.
it in 2025 and will take responsibility for all of its accessories, haute couture and ready-towear collections.
The company’s chief executive, Leena Nair, described Matthieu Blazy as “one of the most gifted designers of his generation”. She said his vision and talent would “reinforce the energy of the brand”.
Equipment next priority for UK micro tannery
Cotmarsh Farm is making significant progress toward establishing Cotmarsh Tannery, the UK's first micro-scale vegetable tannery for hides.
Construction of the main tannery building has begun, with the owner, James Allen, noting the project's rapid advancement. Once the building is completed, the installation of machinery will commence.
Chanel has explained that Mr Blazy will join
Currently, several essential pieces of equipment are needed, including a refurbished full-size flesher, a refurbished fullsize shaving machine, and a steam boiler. Mr. Allen told Leatherbiz that the decision to acquire full-size machines is part of a strategy to develop a regional hub, allowing other tanners to utilise the facilities without having to invest in their own equipment.
Bottega Veneta names creative director
Kering-owned
Bottega Veneta has appointed Louise Trotter as creative director, following on from Matthieu Blazy, who has held the position for three years.
Ms Trotter is currently the creative director of high-end French brand Carven, and will join Bottega Veneta at the end of January.
Leo Rongone, CEO of Bottega Veneta, said: “Louise’s aesthetic seamlessly combines exquisite design with sublime craft and her commitment to cultural advocacy aligns beautifully with our brand vision. Through her sophisticated lens, Bottega Veneta will continue to celebrate its heritage while preserving modern relevance.”
Ms Trotter’s previous roles include creative director of Lacoste.
Kering’s brands also include Gucci, Saint Laurent, Balenciaga, Alexander McQueen and Brioni. In 2023, the group had 49,000 employees and revenue of €19.6 billion.
Money talks in Tuzla
Further reasons have emerged for a shift in production from the Tuzla tanning cluster in Turkey to the one at Bursa, 100 kilometres away.
The Tuzla leather cluster was the first of a whole series of modern leather manufacturing clusters that the authorities in Turkey have established in the twenty-first century.
Tuzla was picked for its proximity to Istanbul. It is around 40 kilometres from the city’s Taksim Square to the Tuzla site.
Earlier this year, tanners complained that higher labour and water-treatment costs in the region around Istanbul were making leather production at Tuzla too expensive, prompting a number of manufacturers to
concentrate on Bursa instead.
Now an even more pressing financial incentive for making this move has emerged. The space that leather manufacturers have acquired at Tuzla is in demand and tanners have begun renting out their buildings there to logistics operators and to companies in other manufacturing sectors.
Because it makes financial sense for tanners to rent out their facilities in Tuzla and move their own production to Bursa, current production output there has increased to 1,300 tonnes of wet blue hides per day, with industry commentators saying this is increasing day by day.
Market momentum ‘extremely negative’, UNIC says
Italy’s national tanning industry body UNIC has reported that, in the first nine months of 2024, the industry there experienced a fall of 8.5% in production volumes and of 4.1% in revenues, compared to the same period last year.
Full-year figures for 2023 show that Italian tanners produced nearly 99.5 million squaremetres of finished leather, plus 7,000 tonnes of soling leather and brought in total revenues of €4.25 billion.
“The momentum of the market appears extremely negative,” UNIC said. It pointed out that 2023 had, in itself, been a difficult year and that over the last 24 months, the Italian tanning sector has lost 17.2% in production volume and 10.3% in revenues.
ILK Leatherdays call for papers
The 13th Freiberg Leather Days will be held in Freiberg on May 21 and 22, 2025.
Organised by the VGCT and FILK Freiberg, the event will once again serve as a key meeting point for experts in the European tanning and leather industry.
The organisers are inviting experts, researchers, and specialists to contribute to the technical content of the conference. Topics for presentations include:
• New and alternative technologies in leather production
• Advances in characterisation and analytics
• The use of sustainable raw materials in tanning
• Innovative processing technologies
• Automation and machinery
• Artisan tanneries in the age of Industry 4.0
• New trends in the applying industries
Several speakers from various fields have already confirmed their participation.
Those wishing to present new ideas or findings in tanning, leather technology, or related industries are invited to submit their proposals by February 11th, 2025.
Further Italian tax turmoil for Kering
Luxury group Kering has confirmed that it is in a new “constructive dialogue” with the tax authorities in Italy.
In 2019 and 2022, disputes with Italian authorities led to Kering paying €1.25 billion and € 187 million to settle the tax affairs of
Gucci and Bottega Veneta, respectively.
This time, the dispute is over the tax affairs of its Alexander McQueen brand. Reuters has reported that prosecutors have opened an investigation into the brand’s tax affairs for the years 2016 to 2022.
It said it had received confirmation from Kering that discussions were under way, with the luxury group insisting that it was confident it had acted correctly.
FILK research central to new Alliance France Cuir campaign
Industry organisation Alliance France Cuir is using the results of tests by research institution FILK in a new campaign to highlight the properties of leather.
In 2021, FILK carried out tests to compare the performance of leather with that of a series of synthetic alternatives. It published its results in a paper called ‘Comparison of the Technical Performance of Leather and Trendy Alternatives’.
To date, no manufacturer of any of the ‘trendy alternatives’ has been able to publish
follow-up test results to counter FILK’s findings, making them still current and coherent enough for use in campaigns such as Alliance France Cuir’s.
The French industry body said it had launched the “deliberately disruptive” campaign in time for the Christmas shopping season “to create a sensation and to spark passionate conversations”.
It said it had no intention of casting a negative light on any emerging material, but sought only to “re-establish some essential truths”. It sums these truths up by saying: “To choose leather is to commit to durability and to the circular economy.”
In the campaign, it displays alternative materials made, partly, from different raw materials and points out their shortcomings compared to leather.
For example, it says material made using fibres from fungi will be 160 times less tearresistant than leather, and that material containing some fibres from cactus plants will have seven times less flex-resistance. Materials made using pineapple and apple as part of
the fibre mix will have 2.5 times less tear resistance and four times less flex resistance than leather, respectively.
LWG publishes LCA report
Multi-stakeholder body the Leather Working Group (LWG) has announced the publication of its Life Cycle Assessment (LCA) study, analysing the environmental impact of leather production across fifty products within six product families, covering over 2,000 unique chemicals and 250 processes.
Conducted globally from 2021 to 2022, the study encompasses data from 28 finished leather and 32 wet-blue manufacturers, all certified against the LWG Standard. It evaluates key environmental indicators, including Global Warming Potential (GWP), water use, eutrophication, abiotic depletion, and freshwater ecotoxicity.
Key findings reveal that upstream processes, such as cattle farming and slaughtering, are
responsible for 68% of leather’s GWP, equating to 22.48 kg CO2e per square metre of finished leather. Among core manufacturing processes, the post-tanning stage has the most significant impact on abiotic depletion and freshwater ecotoxicity, primarily due to chemical usage.
The report provides actionable recommendations to reduce environmental footprints, enabling LWG-certified manufacturers, brands, and retailers to make informed, sustainable decisions.
Mixed automotive results leads to dip for Pasubio
Automotive
leather supplier Conceria
Pasubio Group has reported an 8% fall in nine-month revenues to € 255 million, following “mixed dynamics” in the automotive sector.
However, a 10% fall in operating costs led to a 10% increase in profits to €19 million. Global vehicle volumes have declined
slightly over the nine months to the end of September, with significant contractions in South America and the European Union. In contrast, North America experienced modest recovery, while growth in China’s automotive sector slowed compared to prior years.
Electric vehicles continue to gain traction but adoption rates vary significantly across regions, it noted.
Pasubio anticipates a slower end to the year: “Our European customers slow down vehicle production in August and during the holiday season in December during which they also often conduct internal maintenance and adjustments to inventory. Further, there are a fewer number of working days at the end of the year as opposed to the beginning of a year and this results in a reduction in vehicle production towards the end of the year.”
The group produces finished leather for seats, dashboards and steering wheels and other upholstering. It manufactures in Italy and Germany, while facilities in Serbia and Mexico are dedicated to re-tanning, finishing, cutting, lamination and wrapping. Its customers include Porsche, Jaguar Land Rover, Lamborghini, Bentley and RollsRoyce.
Senior appointment at Pulcra Chemicals
Leather chemicals developer Pulcra Chemicals has appointed Dr Jürgen Heck as managing director of its operations in Germany.
He will be based at the company’s headquarters in Geretsried in Bavaria and will work closely with group chief executive, Bernd Schalk.
Before this appointment, Dr Heck worked for 13 years at another leather chemicals company, Schill + Seilacher. He held a number of roles there and, since 2020, had been running the Schill + Seilacher site at Böbilingen, near Stuttgart.
Boxmark upholsters Pope’s electric G-class
Leather
manufacturer Boxmark, renowned for its collaborations with prestigious car brands, has upholstered the latest all-electric Mercedes-Benz G-Class for the Pope.
The ‘Popemobile’ vehicle features a raised seat in the rear, providing Pope Francis with a better view and making him more visible to the public. This unique seat is upholstered in Boxmark’s pristine white leather.
The company described its collaboration with Mercedes-Benz as “something quite extraordinary.”
New CEO for Silvateam
Chemicals
group Silvateam has announced the appointment of Max Bonzo as its new Chief Executive Officer.
With over 20 years of experience in a diverse range of industries, Mr Bonzo takes over from former CEO Fabrizio Donega. Ahead of the move, Mr Bonzo led JRS Silvateam Ingredients, a joint venture between
the tannin group Silvateam and the German JRS Group to produce pectin and texturising systems as well as distribution of tara gum.
Change at the top at Scan-Hide and Spoor
December 5 was Michael Søndergaard’s last day as chief executive of Denmark-based wet blue manufacturer Scan-Hide and of traceable finished leather supplier Spoor.
Scan-Hide and Spoor are part of farmercontrolled packer group Danish Crown. Mr Søndergaard is moving to a new position outside the group.
He joined Danish Crown in 2018 and became chief executive of Scan-Hide a year later. In 2019, he said the organisation was close to being able to bring to market a lasertechnology based system for marking and identifying hides, enabling the group to offer traceable leather.
He explained that this would allow brands to share “the whole life-story of the animal, from farm to shoe, farm to sofa and so on”.
This led, in 2020, to Spoor spinning off from Scan-Hide as the supplier of this traceable leather.
Scan-Hide has already announced his successor. Its new chief executive will be Jesper Lauge Christensen, who will join on January 2, 2025. Mr Lauge Christensen has almost 25 years’ experience of the fur industry.
Higg win shows leather is a sustainable material, Chiara Mastrotto says
The chief executive of leather manufacturing group Gruppo Mastrotto has paid tribute to the work that three industry organisations carried out to win a fairer deal for leather from the Higg Materials Sustainability Index (MSI).
Environmental impact assessment tool the Higg Materials Sustainability Index (MSI) announced in late October that it had updated its score for leather, attributing much lower impacts to the material.
Using lifecycle assessment (LCA) information from the Leather Working Group and Leather Naturally, specialist leather industry-focused environmental consultancy Spin 360 submitted detailed data for leather’s impact to the Higg Index and succeeded in bringing about a change that the global leather industry had been requesting since 2020.
In recent comments, Gruppo Mastrotto chief executive, Chiara Mastrotto, said these three leather industry organisations deserved congratulations for their “excellent and datadriven work and analysis”.
Ms Mastrotto went on to say that securing a fairer score for leather on the Higg MSI highlighted that choosing to use bovine leather in finished products represented “a sustainable material choice” for sourcing professionals.
She added that this development also marked “a crucial step in the fight against global warming”.
“It is encouraging to see the leather industry taking strides toward a more sustainable future, promoting responsible sourcing and production practices that protect people and the planet,” she said.
Unifying leather industry for consumer education
Atthe Sustainable Leather Foundation’s recent year-end partner meeting, Katie Kutskill, business operations and strategy lead for the global leather industry campaign group Is it Leather?, discussed challenges and trends in the leather sector.
She noted that more than 150 associations, certifications, and programmes exist globally, but a lack of coordination has created a fragmented flow of information. Ms Kutskill called for greater unification to streamline communication and better inform consumers about the industry’s efforts.
Highlighting market challenges, Ms Kutskill cited a decline in the automotive leather
sector, which has dropped from approximately $4 billion in 2012 to around $2.5 billion today. She noted similar downward trends in the fashion and footwear sectors. According to Ms Kutskill, educating consumers about leather’s value is critical in addressing these challenges, although she clarified that this goal is not driven by increasing industry profits.
The campaign has incorporated the term ‘vegan leather’ in its messaging, despite criticism of the term as self-contradictory. Ms Kutskill explained that the term is a proven search phrase used by consumers, and its inclusion aims to ensure that accurate information about leather appears alongside related search results. She also reported that some original equipment manufacturers (OEMs) have engaged with the campaign, with a few reconsidering their use of alternative materials or adjusting their labelling practices.
The presentation concluded with a call for
12 - 14 MARCH 2025
greater industry collaboration to improve consumer understanding and emphasise the value of leather.
The ‘objective choice’ is to take leather out of EUDR scope
The secretary of the International Council of Tanners, Dr Kerry Senior, has welcomed confirmation that the three executive bodies of the European Union have now agreed to a proposal to delay the application of the European Union Deforestation Regulation (EUDR) by 12 months.
He said the decision was sensible and would allow time for the industry to prepare for the new traceability requirements and for the authorities to put the necessary reporting systems and country risk categories in place.
But he added that a review of EUDR would conclude in June 2025, six months before the new date of application, and that the industry would now have time to argue for the removal of leather from the scope of the regulation.
“As has been comprehensively demonstrated, leather is not a driver of deforestation,” Dr Senior said. “Regulating leather will not reduce deforestation but it would have significant negative social, economic and environmental impacts. Taking leather out of the regulation is the only objective choice.”
Ecco CEO stands down
Reports indicate that Panos Mytaros has resigned as CEO of ECCO Leather, effective immediately. He has updated his LinkedIn profile to show that he is back in the Netherlands and is ‘open to work’.
In the interim, Thomas Gøgsig has been appointed as the acting CEO while the company evaluates its leadership strategy.
Mr Mytaros first joined ECCO as the tannery director in Indonesia before returning to Europe in 2002 to help establish the ECCO Leather Group in Dongen, Netherlands. He became a board member in 2011 and took on the role of Group CEO in 2021, succeeding Steen Borgholm.
Thomas Gøgsig, a third-generation member of the Gøgsig family at ECCO, has been with the company for nearly a decade. He was appointed head of applied research in 2015 and later served as Vice President and Chief of Staff in the marketing division starting in 2018.
Positive EUDR news from Brussels
A“provisional political agreement” has emerged between the European Parliament and the European Council on the proposal to grant a 12-month additional phasing-in period for the European Union Deforestation Regulation.
Following this, the Parliament and the Council must still “formally adopt” the amendment. Once they do so, businesses, including those in the leather supply chain, will have an extra year to prepare for the application of EUDR, which demands detailed traceability information on a range of products, including hides and leather.
Once formally adopted, the law will become applicable on December 30, 2025, for large companies and on June 30, 2026, for micro- and small enterprises.
“Given the EUDR’s novel character,” the European Commission said, “the swift timeframe, and the variety of international stakeholders involved, an additional 12 months to phase in the system is a balanced solution to support operators around the world in securing a smooth implementation from the start.”
In the meantime, it said it would continue providing further clarifications on the legislation and explore “additional simplifications” through updates of the guidelines and a frequently asked questions document.
It said an information system on which businesses will register EUDR due diligence information will enter into operation on December 4 this year.
Originally, all countries around the world were to be classified as presenting ‘low’, ‘standard’ or ‘high’ risk of deforestation. In November, the European Parliament voted to introduce a ‘no-risk’ category too. The Commission has now said it aims to finalise the country benchmarking system no later than June 30, 2025.
Change of address for Hermès store in Lille
Luxury group Hermès has reopened in Lille, expanding and moving to a new address on one of the city’s oldest streets, the Rue des Chats Bossus.
Its new location is in a listed architectural complex of buildings from the fifteenth and sixteenth centuries, a few minutes’ walk from Hermès’s original address in the city. It first opened a store there in the 1950s.
Leathergoods are presented at the heart of the new store beneath a gabled glass roof.
Senior appointments at Richemont
Luxury group Richemont has announced new chief executives for its Vacheron Constantin and Jaeger-LeCoultre brands.
Laurent Perves will take over the running of Vacheron Constantin and Jérôme Lambert will take up the same role at Jaeger-LeCoultre. Both changes will take place on January 1.
Major automotive group CEO departs abruptly
Automotive
group Stellantis has announced the sudden departure of its chief executive, Carlos Tavares. It said the board had accepted Mr Tavares’ resignation on December 1.
Stellantis formed in 2019 when Fiat Chrysler agreed to merge with the Peugeot Group. It immediately became the fourth-largest automotive group in the world. Its main brands include Fiat, Chrysler, Peugeot, Vauxhall, Citroën, Jeep, Alfa Romeo, Maserati and Dodge.
Carlos Tavares, who led Peugeot into the merger, became the new group's first chief
executive. He had previously worked at Renault and had a reputation as a specialist in turning companies’ fortunes around. In recent weeks, Stellantis has announced falls in sales and factory closures.
The board said its search for a new chief executive had already begun and that it was confident of making an appointment during the first half of 2025.
Supercars inspire Balenciaga collection
Fashion house Balenciaga is partnering carmaker Lamborghini for a collection that includes handbags, leather luggage tags and leather jackets.
It said the collaboration builds on the house’s exploration of streamlined, supercarinspired designs, which have informed some of its most distinctive footwear and apparel.
The first item will be a white long-sleeve tshirt featuring the 2025 Lamborghini Temerario, the company’s second hybrid super sports car.
The complete Balenciaga Automobili Lamborghini collection will be available in spring 2025.
Mauro Bergozza elected President of Assomac
TheCEO of Bergi, Mauro Bergozza, has been elected president of Assomac, representing Italian tannery, footwear, and leather machinery manufacturers.
Succeeding Maria Vittoria Brustia, Mr Bergozza pledged to strengthen innovation, sustainability, and the "Made in Italy" brand to tackle global competition.
Cristiano Paccagnella of Omac S.r.l. was confirmed as vice president, while Massimo Angeleri of Officina Meccanica Angeleri S.r.l. was appointed as an additional vice president. The appointments were ratified during the General Assembly at Milan’s Mudec - Museum of Cultures.
The € 650 million sector, comprising 235 companies and 3,900 employees, recorded 36% of global exports in 2023, excelling in tannery (54%) and leather goods (51%) machinery. While exports grew slightly, geopolitical challenges led to fluctuations, with notable growth in Turkey (+60%) and Spain (+57%) but a 39% decline in China.
Amid a 6.7% export drop in early 2024, key markets like Vietnam (+163%) showed promise. Confindustria's Marco Nocivelli stressed the need for Industry 5.0 investments to maintain competitiveness by integrating technology, sustainability, and worker well-being.
The General Assembly highlighted collaboration and innovation as critical to sustaining the sector’s resilience and excellence.
ASIA
Sadesa launches new leather plant
Leather manufacturing group Sadesa has announced the inauguration of the new, state-of-the-art facility in Vietnam, aimed at
enhancing its presence in the international market. This development represents a significant milestone in the company’s growth from its origins in South America to expanded operations in Southeast Asia.
The newly established facility is strategically positioned to produce up to two million square feet of premium athletic leather monthly and has achieved LEED Gold certification, indicating its sustainable design. This level of output is intended to support the company's forthcoming expansion and reinforce its status within the leather industry.
A company representative noted, “This new facility is not just another plant for Sadesa. It’s a testament to our unwavering dedication to innovation, sustainability, and leadership.” The facility is designed to address local market demands while aligning with the company’s overarching global vision.
Equipped with advanced technologies for leather production, environmental protection, and resource conservation, the facility also generates 30% of its electricity through 4,700 square meters of solar panels, highlighting the company’s commitment to sustainability.
Italian luggage maker believes time is right
for China
Italian luggage maker BRIC'S has opened its first store in China, located in the Wangfujing shopping district of Beijing.
The company said outbound trips from China are expected to reach 130 million this year and domestic travel was up by 14% in the first half of 2024, quoting the country’s Ministry of Culture and Tourism.
Attilio Briccola, CEO of BRIC'S, said: "We see great potential in the Chinese market, especially as travel rebounds post-pandemic.”
It is working with BranDNA - which manages 7 For All Mankind, United Arrows, Pink House, BCBGMAXAZRIA and Ben Sherman in China – for the expansion, following success in Japan and Korea.
James Chen, CEO of BranDNA, added: "We are excited to satisfy the burgeoning demand of today's travellers who seek both style and utility in their travel accessories.”
AMERICAS
US wet-salted hides are 5% cheaper than a year ago US hide exports in the first ten months of 2024 reached a volume of 21.9 million pieces with a combined value of $879.2 million.
Compared to the same months in 2023, these figures represent a fall of 8.2% in volume and of 6.25% in value.
So far, in 2024, packers and traders have shipped 18.5 million wet-salted hides, bringing in $542.4 million, down by 11% in volume and by 16% in value year on year. However, for wet blue growth has continued. Between January and October this year, tanners, packers and traders have exported 3.4 million wet blue hides from the US, bringing in $336.8 million.
These wet blue figures represent increases
of 11% in volume and of 14% in value compared to the same period last year.
Over the ten-month period, the average price of a wet-salted cattle hide for the US was $29.28 in 2024, compared to $30.85 in 2023. For wet blue, the average 2024 price so far is $99.05, compared to $96.96 in 2023.
This means the average price of a US wetsalted hide is currently 5% lower than in 2023, but the average export price of a wet blue hide from the US is currently 2.1% higher than a year ago.
Shoe group confident of navigating headwinds
Footwear
group Designer Brands has reported its results for the first nine months of its current financial year, the period ending November 2, 2024.
Its net revenues for the period were $2.4 billion, an increase of 1.3% compared to the same period in the previous year.
Chief executive, Doug Howe, said the third quarter had begun strongly but had then had “a difficult transition into the fall season” owing to unseasonably warm weather and ongoing macroeconomic uncertainty. “We remain confident in our strategy and our ability to navigate headwinds,” Mr Howe added.
Shrinking
US herd leads to job losses at Cargill
Food group Cargill has begun to lay off employees as part of a plan to reduce headcount by 5%, according to Reuters.
The group has more than 160,000 employees worldwide, and a spokesperson said all operating regions will be affected by cutbacks.
"The company is facing a cyclical downturn," said Chris Johnson, agribusiness director for S&P Global Ratings. "Their exposure to beef is a reason why they have faced a significant shortfall in earnings."
The US herd is the smallest it has been in decades.
US Department of Agriculture projects domestic beef production will decrease 2% in fiscal 2025 compared with fiscal 2024.
Export development leadership role for former LHCA president
Former president of the Leather and Hide Council of America Stephen Sothmann has been named as the executive director of nonprofit private-sector trade association the US Agricultural Export Development Council (USAEDC).
Mr Sothmann left the Leather and Hide Council of America a year ago after more than a decade of leading efforts to promote US exports of hides and leather, and to champion the global leather sector. He joined a specialist Washington DC-based agricultural trade policy company, DTB.
Now, USAEDC has appointed DTB to manage the organisation, with Stephen Sothmann as executive director.
USAEDC executive committee chairman, Greg Tyler, commented: “The executive committee and board of directors are thrilled
with this selection and look forward to the DTB team’s leadership in guiding USAEDC. We are confident in their ability to advance the organisation, building on our past successes while addressing the new challenges and opportunities faced by the 70-plus agricultural trade associations that make up this unique group.”
Denver follow-up to Dublin Declaration
Two years after the Dublin Declaration, through which more than 1,200 prominent scientists have called on policy-makers to take a science-based view of animal agriculture, a second call for action has followed.
Aims of the Dublin Declaration include stopping the “widespread discreditation of meat, dairy and eggs” so that policies on food production and consumption can return to “fully evidence-based and economically and culturally appropriate guidance”.
Signatories of the document have said they observe a trend in policymaking “to deploy patronising approaches”. They say these approaches are aimed at restricting dietary choice and often involve “nudging, pressuring, and taxing consumers away from consuming proven nutrient-dense animalsourced foods”.
Furthermore, they say it is worrying that proposed substitutes for meat and dairy are “nutritionally incomparable” and often inadequate. These substitutes are often ultraprocessed or unscalable.
Their conviction is that the Dublin Declaration has “emboldened scientists to alert policymakers and the public to the importance of basing food policy on sound scientific evidence”.
With this in mind, the core group of scientists behind the declaration chose the Second International Summit on the Societal Role of Meat and Livestock in Denver at the end of October to issue a new appeal, the Denver Call for Action.
This calls on policymakers worldwide to commit themselves “to plurality and rigour in evidence-based decision-making”.
The Denver statement says: “Meeting the massive challenge of nourishing global populations while minimising environmental harm, will only be achieved through the transparent application of the scientific method, steering clear of hubris, presumptuousness, and dogma.”
President pays visit to tannery in Paraguay
The president of Paraguay, Santiago Peña, led a delegation of ministers on a visit to the Durli tannery in Paraguarí, in the south of the country, on December 4.
During the visit, the president paid tribute to Durli’s contribution to sustainable manufacturing and to job creation in Paraguay. He said these values were entirely in keeping with the national strategy for economic growth.
Durli said it had used the encounter to present a formal request for the end of branding of cattle hides in Paraguay, pointing
out that eliminating branding marks would add value to the entire leather value chain in the country.
LHCA endorses congressional slow fashion movement
The Leather and Hide Council of America (LHCA) has announced its endorsement of the Congressional Slow Fashion Caucus, a pioneering initiative in the United States focused on promoting sustainable practices in the fashion industry.
The caucus, launched in June 2024, is cochaired by Congresswoman Chellie Pingree (Maine), Congresswoman Marie Gluesenkamp Perez (Washington), and Congresswoman Sydney Kamlager-Dove (California). Its mission is to encourage "climate-smart policies to reduce, repair, re-wear, and recycle textiles" to combat the environmental harm caused by fast fashion.
At the launch event, Congresswoman Pingree highlighted the legislative role in fostering sustainability, stating, "We can create incentives for the fashion industry and consumers to reduce natural resource consumption and engage in reusing, repairing, rewearing, and recycling textiles."
LHCA leaders underscored their alignment with the caucus's objectives. Mike York, LHCA Co-Chair and Tennessee Tanning Plant Manager, emphasised the need to combat fast fashion through "smart shopping, long use, repair, and recycling." Dave Seaver, LHCA CoChair and Hide Sales & Marketing Director, highlighted leather’s durability and its role in waste reduction as an upcycled by-product of the meat and dairy industries.
Kerry Brozyna, President of LHCA, called leather "a true champion of the slow fashion movement," citing its benefits for sustainability, consumer satisfaction, and waste reduction.
The collaboration reflects growing momentum in addressing environmental challenges posed by the fashion industry while promoting durable, sustainable materials like leather.
AFRICA
Feasibility study under way for Rwanda’s tannery park project
Rwanda is progressing plans to establish a tannery park in the Bugesera Special Economic Zone, with a feasibility study set to conclude within three months.
Announced at the 17th Africa Leather Value Chain Annual Forum in Kigali (10–12 December), the study is set to define capital requirements, design specifications, and operational details for the $15.1 million project. The initiative aims to boost local leather processing and reduce dependency on imported hides and skins.
Alexis Kabayiza, Chief Technical Advisor at the Ministry of Trade and Industry, underscored the project's significance during the forum, highlighting its potential to drive industrial growth.
The planned tannery park will include an integrated leather processing facility with effluent treatment systems. Officials stated that the feasibility study would guide investors and facilitate the production of leather goods such as shoes and belts, aligning with Rwanda’s industrialisation and value addition goals.
Feasibility study underway for Rwanda’s Tannery Park Project
Rwanda is progressing plans to establish a tannery park in the Bugesera Special Economic Zone, with a feasibility study set to conclude within three months.
Announced at the 17th Africa Leather Value Chain Annual Forum in Kigali (10–12 December), the study is set to define capital requirements, design specifications, and operational details for the $15.1 million project. The initiative aims to boost local leather processing and reduce dependency on imported hides and skins.
Alexis Kabayiza, Chief Technical Advisor at the Ministry of Trade and Industry, underscored the project’s significance during the forum, highlighting its potential to drive industrial growth.
The planned tannery park will include an integrated leather processing facility with effluent treatment systems. Officials stated that the feasibility study would guide investors and facilitate the production of leather goods
such as shoes and belts, aligning with Rwanda’s industrialisation and value addition goals.
OCEANIA
Australian red meat exports surge in 2024
Australian beef and sheepmeat exports have shown strong growth in 2024, with several records likely to be set, according to promotions body Meat and Livestock Australia (MLA)
Beef exports in November rose 27% yearon-year to 118,878 tonnes, driven by a 79% increase to the US (35,026 tonnes). Exports to South Korea increased 5% to 19,001 tonnes, while shipments to Japan fell 2% to 17,515 tonnes, and exports to China held steady at 16,336 tonnes. Year-to-date beef exports reached 1.216 million tonnes, 25% higher than 2023, putting 2024 on track for a record year.
Sheepmeat exports also reached unprecedented levels. Lamb exports fell 9% year-on-year to 27,183 tonnes, while mutton exports rose 42% to 28,249 tonnes, with China receiving over half of mutton shipments. Year-to-date lamb and mutton exports have already surpassed previous annual records.
The data reflects sustained demand in key markets and robust export performance.
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