LBizMarketIntelligence_220725

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Leatherbiz Market Intelligence executive summary: • • • • • •

• •

People in the leather industry in China lament the current situation and are already suffering from tariffs and restrictions However, expectations for the industry’s immediate future there are not all negative This is why so many US hides still appear in the export statistics for China Essentially, a small number of companies that are either wholly or partly supported by the state are engaging in this raw material sourcing The only interest is in the cheapest hides, but these raw material purchases still seem to point to a better future If leather is competitively priced, Chinese consumers will still be very willing to buy leather products and still consider them to be of higher quality than the alternatives With a population of almost 1.4 billion people, China still represents a very large domestic market If the government includes good stimulus policies in its next five-year plan (2026-2030), there are grounds for optimism, and for investing in raw material.

MARKET INTELLIGENCE

M

ost factories in Europe are clearing the decks and production is entering its final stages before the summer holiday season begins. The general situation has not changed in recent weeks.

In international politics most decisions continue to originate with the US president, and the fact that announcements increasingly play out on social media is accelerating the pace of information even further. As a result, political decisions are less and less the result of calm discussions in parliaments and government buildings and more and more the result of impulsive outpourings from individuals.

We will refrain from listing the individual tariff threats and agreements that have been made in recent weeks. Ultimately, it is not so much the individual threats and deals that are decisive, but rather the high degree of uncertainty they cause.

When talking to many of those affected in the supply chain in Europe today, the content of the conversations is mostly similar. But one thing unites almost all of them. There is a sense of great fatigue and the impression that the reaction is, increasingly, a shrug of the shoulders and less on actually dealing with the problems that directly or indirectly affect the leather industry. To sum it up briefly, it seems that people are simply waiting for the holiday break and do not want to deal with problems, big or small, for a few weeks. Of

course, people are not so naive as to believe that everything will be fine again after they return.

We have no choice but to address customs duties once again. In our opinion, the indirect influences are particularly problematic. Owing to the long supply chains, customs duties cannot be viewed bilaterally. This is particularly true for high-quality leather manufactured in Europe. If this leather is delivered to third countries to be made into a final products there, the question of who is affected by tariffs and to what extent is one issue. But then there is the other issue of how the possible customs burden should be distributed.

However, we also believe that the consideration and discussion of tariffs overlooks a very important point. The tariffs must be paid by the buyers in the US and not by the exporters. In the public perception, there is a growing impression that tariffs are a direct burden on those who supply goods.

The discussion and analysis of how and to what extent the increased prices will affect US purchasing behaviour is, in our opinion, far from sufficient. Despite all the hope that the president has regarding his goals, it should not be forgotten that, at the moment, US consumers and companies are still dependent on imports of many products. It can therefore be assumed that almost all countries could be affected by tariffs in some form, which raises the question of how the competitiveness of

the individual supplier countries will develop.

There are quite a number of products that cannot be immediately and easily imported and replaced by the US. Ultimately, the question is whether there will be a significant increase in inflation there and how purchasing behaviour might change. Even though highquality products will not be left unscathed, higher-end products that are either manufactured in Europe or made from European materials in third countries will probably feel less of an impact than others.

Nevertheless, there is still a possibility that leather could be less affected by tariffs and therefore become more competitive as a material. Due to historically low prices for raw materials, the pure costs are often no longer the most significant obstacle.

In any case, if the tariffs are actually implemented, there will most likely be a significant change in supply chains and purchasing behaviour in the US. This does not even take into account the impact of possible counter-tariffs, which in turn could bring about additional changes for individual products and countries. However, the situation is so complex and so many parameters are still unclear that it is virtually impossible to make a truly comprehensive and reliable analysis and projection. This explains why so many players in the leather supply chain are currently overwhelmed and, in some cases, even desperate about whether and how their products will be affected by these developments. This explains why this feeling of paralysis is so widespread in Europe.

In this context, the diverse discussions with our partners in Asia, and especially in China, have also been interesting. We have naturally tried to gather information and impressions from China as well, to find out how the trade conflict between China and the US is perceived there, given that it will have a much more decisive impact on the Chinese market.

We readily admit that we did not have high expectations for the discussions. To be honest, we expected pessimism and fear. As much as people lament the current situation in the leather industry in China and as much as they are already suffering from tariffs and restrictions, it is surprising that this is not necessarily linked to negative expectations for the future.

Our questions were actually based on the assumption that we would receive information about why, under the current conditions, so many US hides still appear in the export statistics for China. If the outlook is so poor and larger stocks have allegedly already been built up, why buy even more, and in significant quantities, over the last few

2 TUESDAY, JULY 22 2025 LEATHERBIZ

weeks? At the beginning of the talks, this was explained relatively simply. Essentially, a small number of companies that are either wholly or partly supported by the state are engaging in this. This at least clarified the question of how the purchases were financed. In the second stage, this was justified by orders for the military and security agencies. Ultimately, this is also plausible. When the questions went further and also focused on the production centres in the north of China, it was confirmed that this activity in the raw material market is by no means as low as one might expect given the mood and the situation. However, it must also be mentioned in this context that the only interest is in the cheapest hides. Only price makes the deal.

In addition to the already familiar standard explanation that cheap hides and the revenue from the splits alone are a reason and opportunity to maintain production, there were other interesting comments. When asked how it can be that, despite the great

difficulties in exporting leather and leather products from China, today’s raw material purchases still seem to point to a better future, we received a relatively simple explanation. Firstly, if leather is competitively priced, and that is the case, then Chinese consumers would still be very willing to buy leather products and still consider them to be of higher quality than the alternatives.

Secondly, with a population of almost 1.4 billion people, China still represents a very large domestic market, and if the government makes the right decisions, it could very well manage on its own with significantly reduced exports. Thirdly, this led to the information that the government is currently working on the next five-year plan. This, the fifteenth fiveyear plan, will cover the period from 2026 to 2030. Here, too, opinions may be divided on the decisions of the central government, but in principle every Chinese business will try to comply with the guidelines and plans. In any case, many of our sources were firmly

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convinced that further stimuli for domestic consumption will definitely play a major, if not the most important, role in the next plan and this will guide company decisions.

Preparations are being made already.

Acquiring cheap raw materials is certainly not the worst idea.

If confidence in the competence and decisions of the government proves to be justified, then investing in cheap raw materials is no great surprise. A look at the history of the last 25 years shows us that it was always Chinese buyers who reacted to cheap prices and whose speculation, with the simultaneous protection and support of government policy, was successful for a certain period of time.

Admittedly, the overall situation worldwide today is somewhat different from in the past, but fundamentally it would be wrong to ignore the psychology and mindset in China.

Of course, this may not help other leather producers around the world very much. In the past, rising prosperity and a great willingness to consume in China also led to massive growth in imports. Many in the leather industry have benefited from this for years. If the focus is now on domestic production and domestic brands, this will probably have less of an impact on the prospects for exporters to China. The focus on national brands, the consideration of whether the higher price for imported products is really justified, and a healthy dose of nationalism will probably create a much more difficult environment for the export of leather and leather products from Europe to China. Either way, it would be advisable for many stakeholders to monitor further developments in China closely, as this is where leverage on developments in the supply chain is still the strongest.

Another welcome piece of news last week was that the German Leather Industry Association, VDL, announced a legal victory in protecting the term ‘leather’. In the second instance, a manufacturer was prohibited from labelling products made from alternative materials (in this case apple peel) as ‘leather’.

Even if it is only a local decision, it sends a signal about the commitment and tenacity of the German association, for which we can only be grateful in this case. However, it is to be hoped that these decisions will then be widely publicised, because rejoicing within the leather industry about this does relatively little for the material in the consumer goods sector.

It should also be noted here that more and more small brands are addressing the issue of the circular economy and the use of hides and skins for leather production. The general global mainstream opposition to the material is slowly encountering some resistance, and many smaller brands are also seeing an opportunity to counter the general consensus.

The only problem in this context, however, is that the big names are once again lagging behind in this development, which means that the general public still has a different impression.

Much will now depend on whether these initial attempts are successful, because one

TUESDAY, JULY 22 2025 LEATHERBIZ 3

thing is certain: in the end, the big players do not set trends, they merely follow them. In this context, it would be very desirable if a company such as adidas, which is currently enjoying great success with its leather shoes, were finally prepared to acknowledge this and make it clear that it is also making a very significant contribution to the circular economy. How unfortunate it is not to capitalise on one's own good decisions. In principle, the motto should be: do good and talk about it.

We will leave the area of sheepskins out again, as there are no really new findings or developments. Presumably, only the Lineapelle trade fair in Milan at the end of September will show whether there could be a return to widespread use of leather from sheep, goats and other skins in this sector as well.

The overall picture for split leather has not changed. There is a certain shortage of certain items, particularly suede split material. The decline in leather production continues to play an important role, of course. The summer break in Europe is another factor. However, what we find difficult to understand is the fact that there are endless alternatives for manufacturing the same or similar products at comparable prices, if only we were a little more creative in our use of the available raw materials.

The next few weeks will be dominated by the holidays in the northern hemisphere, so we wish our readers in this region a wonderful and relaxing holiday. We will keep our finger on the pulse and report on any important events and major changes that occur during the holiday season.

US PERSPECTIVE

S

ales of cured cattle hides for the period ending July 10 were 342,500 pieces. The figure for exports of wet blue was 58,300 pieces.

The most recent reports on hide prices showed Colorado branded steer hides weighing 62-64 pounds at an average of $17 each, and heavy Texas steers weighing 60-62 pounds still at $11.50 per piece.

Cow hide prices were up, showing northern dairy cows at $12, south-west dairy cows at $11.50, northern branded cows at $4 and south-west branded cows at $3, 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

S

ales volumes in cash markets were light last week and surprisingly the show lists were down in all areas instead of being higher with carry-overs. Packers will choose the only defence available to them: trim the kill. There are limits to slaughter reductions and some restrictions created by union contracts that specify minimum hours each week. Already most plants are pared back near those minimums.

This past week’s market was steady to $1-

Actual Slaughter Under Federal Inspection

Cattle Calves Hogs Sheep Goats

Week ending 21.06.25

Week ending 22.06.24

558,476

615,083

-9.2

2,274

3,710

-38.7

2,342,312

2,382,352

-1.7

36,300

43,128

-15.8

9,141

12,555

-27.2

$2 higher, with packers pushing to acquire cattle without raising prices, but finding it difficult. Packers added inventory at the top end of last week’s trading ranges and were forced to inch prices up $1 higher at week’s end. Sales in the south were at $230 moving up to $231 or $232 in Kansas. In the north prices were mostly $240 live moving to $241 late week. Most dressed sales were $378 to mostly $380. USDA, preventing “over the tops” from being reported separately, is distorting the north-south spread.

% difference

In grain futures, corn and wheat were lower. The southern plains will feature a bumper crop this year. Elevators are lowering the fall basis in anticipation of a large corn crop. Corn basis levels in Guymon, Oklahoma, are at $0.90, basis the September contract.

GERMAN PERSPECTIVE This week: Last week presented a completely normal picture for a week before

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the summer holidays. The remaining deliveries and necessary administrative work are being completed in the leather factories, and beyond that, there is very little activity in the raw materials markets in Europe.

Basically, the impression is growing that everyone has either resigned themselves to unchanged prices until the end of the holiday season, or perhaps even considers this desirable. There is no need to revisit the pros and cons at this point, as major price changes would not alter the market situation and would cause more unrest than provide new insights. Instead, attention is focused on questions such as how the leather industry will fare in Europe after the holidays and in the coming years.

Further changes are on the horizon and it is highly likely that we will hear about some changes in the coming months. In Europe, pressure on leather products remains high, so it came as no surprise when one of the larger French car manufacturers announced that it

would be phasing out leather. However, their vehicles were not major consumers of leather anyway, so the impact on demand will not be particularly significant. Nevertheless, it is another signal that affects the mood.

In this respect, it was gratifying to learn that the German leather industry association, VDL, has won a court case against the misuse of the term ‘leather’. A court has ruled that the term ‘leather’ may not be used for products made from other materials. We can only hope that this decision will remain valid in the long term.

There was interesting news from China, which gave rise to some hope, at least for the local market. Some believe that the central government’s new five-year plan (2026-2030) will include a variety of stimuli for domestic consumption in order to offset the decline in exports. The purchasing power of 1.4 billion Chinese consumers, who have no problem with leather as a material, would be considered sufficiently attractive under the

right conditions. Incidentally, there is also a view that, with the current low prices for raw materials, leather can certainly compete on price in China today. This explains why Chinese customers, although extremely priceconscious and aware of their importance as buyers and for the market, are still actively seeking extremely cheap hides.

Our business this week consisted of the first small quantities for the first few weeks after the holidays and the odd truckload or two, which was then needed to cover the last few small production gaps. Prices remained virtually unchanged, with only marginal changes.

The kill: Slaughter remains at a very low level and is hardly changing. In our region, the school holidays begin the week after next, which will probably put further pressure on slaughter. No one yet knows what changes the German slaughter industry will undergo in the coming months, but there are almost daily reports confirming that major changes are on the horizon. Furthermore, there are concerns about the prices for live cattle after the current fattening phase, because the available data suggests that significantly higher prices should be achievable. Whether consumers will accept this is doubtful, to say the least.

What we expect: It is not particularly difficult to deduce from last week’s reports that we can hardly expect any major price changes in the coming weeks. However, as no major increases in sales are expected and the Chinese market remains closed to us, this stability may be purely theoretical, as it is not backed up by actual active sales.

Nevertheless, this does not change the fact that we are convinced that remarkable changes are imminent in the industry in Europe over the coming months. The impact these will have on the price structure will probably be determined more by the global market than the regional market.

LONG READ Leather and the Circular Economy: Circular Stories

Brave decisions It is 40 years since Catalan small-skin tanning group Curtidos Codina recognised the importance of Brazil as a source of its main raw material and set up its own full-service tannery in the South American country. The facility, Cobrasil, is still going strong.

T

he circularity of using an ever-present byproduct of the agri-food sector should make leather a good industry for family businesses. Knowledge, skills, passion, business relationships and illustrious company names can pass from one generation to the next; the raw material will always be available, for as long as people include meat and dairy in their diets.

TUESDAY, JULY 22 2025 LEATHERBIZ 5

LATEST HIDE AND SKIN PRICES FROM GERMANY TYPE

WEIGHT RANGE

AVG. GREEN WEIGHT

SALTED WEIGHT

AVG. WEIGHT SALTED PRICE PER KG GREEN WEIGHT

TREND

15/24.5 kg

22.0/23.5 kg

13/22 kg

20/21 kg

€ 0.80

Stable

25/29.5 kg

27.5/28.5 kg

22/27 kg

25/26 kg

€ 0.65

Stable

15/24.5 kg

22.5/23.5 kg

13/22 kg

20/21 kg

€ 0.45

Weak

25/29.5 kg

27.5/28.5 kg

22/27 kg

25/26 kg

€ 0.50

Weakish

30/+ kg

33.5/35.5 kg

27/+ kg

29/31 kg

€ 0.50

Weakish

25/29.5 kg

27.5/28.5 kg

22/27 kg

25/26 kg

€ 0.90

Stable

30/39.5 kg

36.0/37.0 kg

24/34 kg

31/33 kg

€ 0.90

Weakish

40/+ kg

45.0/48.0 kg

34/+kg

38/40 kg

€ 0.95

Weakish

Thirds

15/+ kg

25.0/27.5 kg

13/+ kg

24/26 kg

€ 0.40

Stable

Thirds bulls

30/+ kg

38.0/40.0 kg

24/+ kg

33/36 kg

€ 0.45

Stable

Ox/heifers

Dairy cows

Bulls

This is not to suggest that keeping a family business going is easy, as many in the global leather industry in 2025 will testify. The phenomenon of founding families finding themselves being bought out by bigger groups is real. Others are wrestling with unwillingness among younger family members to enter or stay in the industry and take their businesses forward. The demands of investing in new ideas and technology, in measures to meet ambitious regulatory initiatives, in campaigns to attract and keep customers, in training and retaining workers are all huge. Survival is hard, growth a pipedream for most.

And yet, every morning, in every corner of the world, dedicated people make decisions, draw up plans and work diligently to advance the leather manufacturing businesses that they have inherited from their parents or grandparents, or from generations beyond. In spite of everything, the doors remain open, the drums keep turning, the dreams live on.

It is only right to mark important milestones when they come along.

Brazil celebration This is something Jordi Codina was able to do in May when his family’s company celebrated 40 years in Brazil. To be more precise, this was a celebration of 40 years since the opening of the tannery the group runs in Parnaíba in the north-eastern state of Piauí. In fact, its connections to Brazil go back to 1978 and the group itself, Curtidos Codina, began working at its original home in Vic, north of Barcelona, in 1941. The current chief executive’s grandfather, Joan Codina, set the group up and made it into one of the most prominent of the specialist small-skin tanneries that this part of Catalonia is famous for.

The company still specialises in making finished leather from small skins, especially for formal footwear. At first, it worked with Spanish entrefino lambskins, and, unlike most processors of this emblematic material,

6 TUESDAY, JULY 22 2025 LEATHERBIZ

offered it to shoe manufacturers. This was (and still is) uncommon because the lambskins need special treatment at the retanning stage to make them suitable for shoes, and finding the right formula is tricky.

In particular, though, the Codinas built up expertise in processing hair-on sheepskin and it was this specialism that brought the company to Brazil in the first place.

“We were buying dried skins from Brazil and shipping them to Vic,” Jordi Codina explains, “when the government in the South American country began to restrict the export of raw material. We didn’t want to lose access to Brazil because it was a key source of skins for us, so we moved some of our production there. We started renting space at a facility that Curtume Campelo owned in Juazeiro in Bahia. We made wet blue there and shipped it back to Europe for finishing. It was basic, but we didn’t require much structure or machinery. It was enough just to have a few drums for soaking and liming, a couple of paddles, a fleshing machine, and so on. It

worked well enough. In time, though, we saw the need to take this to the next level. We found an abandoned tannery in Parnaíba, rebuilt it more or less from scratch and moved our Brazilian operation there.” It calls the facility Curtume Cobrasil.

Sheepskin super power Hair-on sheep thrive in the semi-arid conditions of Brazil’s north-east. These animals have evolved to withstand hot and dry conditions very well, which is why other good sources of this raw material include countries in West and East Africa. “You often find these sheep in places with a similar, tropical latitude to ours,” Mr Codina says, referring to Piauí’s position of a couple of degrees south of the equator. “And because the animals have adapted to the heat, it has an effect on the hair and on the skin, making this a special raw material. The grain is finer than on lambskin and the tear-strength is not as elastic. The leather is less spongy.”

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make from this raw material appeal to customers that he describes as mid- market, international footwear brands that make fashion- focused, dress footwear, including elegant, heeled and décolleté shoes for the women’s footwear market. Leather from the skins of hair-on sheep has, as its super power, the ability to withstand well the high levels of force required during the mounting process for this type of shoe. “The grain will not break,” Mr Codina explains, “even in a fine, pointed shoe, and this is a fantastic and very specific characteristic.”

Dramatic change Appreciation of sheep leather has endured, even though the footwear supply chain has altered so much. The leather supply chain has evolved too, of course, going through what Jordi Codina calls “a dramatic change”. He explains: “When our group started, Vic had more than 30 tanneries. Now there are only a couple left, employing maybe ten people each. Many of us have had to make the decision to become international or move into another business sector.”

The Codina Group itself closed its tannery in the Catalan city in the first decade of this century. At one time, it also had production in Nigeria and became involved in a cooperative joint venture operation in China in the early 1990s, which was probably too soon, the current chief executive says now. It runs the Parnaíba tannery as a full-process operation, with a beamhouse and finishing plant there. The site employs around 150 people and processes 8,000 skins per day.

It has a second finishing plant in Brazil, which it opened in Novo Hamburgo in 2009, to serve the footwear manufacturing community in Rio Grande do Sul. And in 2019, it re-established a presence in Europe, but chose to set up a finishing plant in Santa Maria da Feira, in northern Portugal, rather than return to Catalonia. The reasoning is the same: to be close to the factories in the region around Porto, which industry body Apiccaps says is home to more than 1,500 companies with an involvement in shoe production.

There are also large footwear factories in the state of Ceará, close at hand for the finished leather that the Parnaíba site produces.

Close calls Proximity where possible and efficiency in everything are concepts that Jordi Codina believes are central to the future of the leather industry. “Our efficiency leaves something to be desired,” he says. “Take a piece of leather measuring around 5 or 6 square-feet. How many times do we move it around, forwards, backwards, taking it from one machine to another in a different part of the tannery? Yes, the product is noble and beautiful and has so much charm, but our industry needs to become even more industrial.”

Beamhouses are a particular challenge; he believes the industry needs a relatively small number of beamhouses, but that these need to be big, should have excellent wastewater treatment plants and highly developed systems for managing solid waste, and should

TUESDAY, JULY 22 2025 LEATHERBIZ 7

be located as close to sources of raw material as possible. These large beamhouses should serve as many finishing tanneries as possible and should work at full capacity so that the industry derives the maximum possible benefit, with the minimum possible waste, from the impact that wet-end processes inevitably have.

In contrast, it is good for finishing plants to operate close to customers’ finished product factories, he continues, as happens in the case of those his own group runs. There is good scope, he is certain, for opening leather finishing plants anywhere footwear manufacturers operate, including Vietnam, Indonesia, Cambodia, India and Bangladesh.

Rising costs in the Far East and all the recent tariff uncertainties could also make African countries a good prospect, if they have a high enough level of development and are open for business. These plants can be small, with low fixed costs, and still be effective and responsive to customers’ needs. Closeness means being able to respond faster and more easily to customer requests and to try out new ideas for them.

He explains that this is an important part of the Codina Group’s offering in Portugal now.

Orders are smaller than they used to be, but the range of colours is wider than ever.

Samples can be ready for customers to see in a short space of time; some customers visit twice a day to discuss the specific finishes or other aspects they have in mind for a particular product. “When I entered the business, good service meant delivering orders in 45 or even 60 days,” he says. “Now we are delivering in 10 days, and if possible, with small orders, it can be less. For some customers we are delivering in three, four or five days.”

leather industry not being industrial enough.

Jordi Codina says he is fascinated by the mentality of Asian producers, especially those in China. “They are more productive and more ambitious,” he says. “They think bigger. They find solutions. They are doing amazing things in our field. Perhaps more and more of the leather industry will go there and stay there. A friend of mine went to China recently and said tanneries there were 20 years ahead of the rest of us. I said that even in 20 years we will not be where they are today. Perhaps we, in the rest of the industry, haven’t been willing enough to try automating and simplifying our processes.

Perhaps we haven’t been brave enough.”

But, if this is true, the Codina Group is surely an exception. He doesn’t say this, but the group’s decision to remain committed to its specialism and its willingness to cross the Atlantic to be able to keep making its products are clear demonstrations of bravery.

Achieving the milestone of 40 years of Cobrasil in Parnaíba was well worth celebrating.

EUROPE Initial progress encourages Burberry

L

ondon-based luxury brand Burberry has reported revenues of £433 million for the first quarter of its current business year, the three months ending June 28, 2025. This is a fall of 6% compared to the same quarter a year earlier.

Chief executive, Joshua Schulman, said he had noted “strength in our core categories” and that there had also been “an uptick in brand desirability”.

He commented: “Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see.”

Saddlers charity cycle to support leathermaking skills

A

group of 16 liverymen and freemen from the Worshipful Company of Saddlers

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Infrared spraying technology is one of the most recent additions to the set-up in Portugal. “This system doesn’t require a boiler and consumes little in the way of chemicals,” the chief executive explains, “and it uses very little water. A big tannery might consume 500 cubic-metres of water a day, but at Santa Maria da Feira we only need 3 cubic-metres per day.”

The Novo Hamburgo operation is different, concentrating on producing “a more commodity product” in terms of colours, with perhaps just small adjustments for shine or softness. This tannery, which employs 35 people, uses what Mr Codina calls “a universal crust” to do this. It achieves an output of 500,000 square-feet of finished leather per month, which he regards as “unbelievable productivity”.

He insists there is plenty to be positive about for an industry that was recycling, upcycling and making circular materials millennia before these terms were invented.

But there is an impact from the upcycling work the leather industry carries out and he is an advocate for continuous improvement to make leather’s impact as small as possible.

This brings him back to the question of the

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began a 174-mile cycle ride from the Walsall Leather Skills Centre to Saddlers’ Hall in London on July 17.

The ride aimed to raise funds for Shelter From The Storm, a charity supporting people experiencing homelessness, and to highlight traditional saddlery skills and training.

Based at The Bridge in Walsall, the Leather Skills Centre offers apprenticeships in Leather Craftsperson (Level 2) and Bespoke Saddler (Level 3), as well as City & Guilds Diplomas in Saddlery, covering bridle, saddle and harness making.

Court success for leather industry in Germany

G

erman leather industry association VDL has won an important court case. It successfully challenged a company’s use of the term ‘leather’ in products made from synthetic material.

Under competition laws in Germany, some trade associations have the authority to issue legal warnings to companies whose marketing messages are likely to mislead or

confuse consumers. VDL earned the right to take that action in 2023.

It exercised this right in a case against a company called Mina Merchandising GmbH, which was selling dog collars made from synthetic material marketed as ‘apple leather’.

Mina Merchandising is a company founded

by Martin Rütter, a well known television personality, speaker and writer who specialises in dog-training.

The company first received a formal warning from VDL about its misuse of the term ‘leather’, but Mina Merchandising ignored it. This brought the matter to court.

A first-instance court initially rejected VDL’s case, but the leather industry organisation appealed. At the start of July, the Higher Regional Court in Cologne heard the appeal and found in VDL’s favour.

The court said the term ‘leather’ may only be used when a product is made entirely or partially from animal hide. It also said that using the term ‘apple leather’ for products that contain no leather was deceptive and unlawful.

VDL managing director, Andreas Meyer, commented: “We are not opposed to new materials, but we do not want these materials to be referred to as leather. To do so would be to mislead consumers.”

After Germany success, COTANCE calls for EU-wide rules

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he leather industry’s main representative body in the European Union, COTANCE, has said the court ruling in Germany supporting the correct use of the term ‘leather’ sends a strong message to brands everywhere.

It paid tribute to its member association in Germany, VDL, for its success in setting a legal precedent. “As similar misleading practices grow across markets,” COTANCE said, “this decision reinforces the urgent need for EUwide rules protecting the authenticity of leather and for a level playing field in product labelling.”

It said this legal victory for leather was also a victory for consumers and sent a strong signal to companies that are profiting from the “reputation and unmatched quality” of leather.

“The era of greenwashing is coming to an end,” COTANCE concluded.

Q1 growth for Richemont

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uxury group Richemont has reported revenues of €5.4 billion for the first quarter of its current business year, the period ending June 30, 2025.

This figure represents growth of 3% compared to the same quarter a year earlier.

The group’s own stores, including those of its jewellery and watch brands, as well as those of leathergoods brands Delvaux, Chloé and Gianvito Rossi, brought in more €3.7 billion, growth of 3% year on year.

Wholesale revenues were up by 2% to reach more than €1.3 billion, while online sales accounted for a smaller figure, €323 million of the total, but up by 3% year on year.

Water in focus at seventh Sustainable Leather Forum

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lliance France Cuir has announced the programme for the seventh Sustainable Leather Forum, which will take place in Paris on September 8.

Water will feature prominently in the first half of the conference. An introductory keynote featuring academic Christian Buchet will examine the ocean as a key to humanity’s future.

Following this, World Wildlife Fund’s Payal Luthra will speak on the challenge of saving water in the fashion industry.

Later in the morning, the use of water in leather manufacturing in particular will become the focus. Three industry figures, Leather UK director, Dr Kerry Senior, chief executive of Qualus, Kerry Brozyna, and the director of Tanneries Haas, Jean-Christophe Muller, will speak.

They will outline steps the leather industry is taking to take care of the precious resource that is water.

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Tapestry expands investment with Gen Phoenix

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apestry, owner of Coach, Kate Spade and Stuart Weitzman, has expanded its partnership with Gen Phoenix, the UK-based company formerly known as E-Leather.

The agreement includes a three-year contracted supply deal and an increased equity stake from Tapestry, raising its shareholding to 9.9%.

Gen Phoenix uses milled leather off-cuts and post-consumer materials to produce sheets made from two layers of fibre web with a textile core, bonded using water pressure.

The materials are designed to offer circular, scalable alternatives to virgin leather and synthetics.

The renewed partnership builds on work that began in 2022 and has since evolved into a close collaboration.

The two companies have shared access to R&D, manufacturing and design processes to co-develop materials that meet the aesthetic and performance needs of Tapestry’s brands while supporting sustainability goals.

Tapestry’s investment forms part of Gen Phoenix’s $15 million Series round led by venture capital firm Material Impact.

With a total of 133,778 vehicles sold, the Mini brand reported strong year-on-year growth of 17.3%. It grew in all regions worldwide.

The Rolls-Royce brand increased its sales by 9.4% year-on-year in the second quarter. In the first half of the year, the brand delivered 2,796 vehicles (-0.8%).

BMW Group board member Jochen Goller said: “Thanks to our attractive product line-up, we were able to close the second quarter successfully. We also achieved an important milestone, with the delivery of our 1.5millionth fully-electric vehicle.”

Supervisory additions to Leather Naturally

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ndustry association Leather Naturally has appointed Thomas Yu and Arnaud Backbier to its supervisory council, with James Lang elected for a final term as chair.

The council acts as a governing body, supervising the board, which is responsible for the day-to-day running of the organisation.

Arnaud is a business leader with 20-plus years’ experience, including at chemicals manufacturer Royal Smit & Zoon as commercial director.

Thomas is the manager of Jollity Enterprise, based in Taiwan. He has held the position of president of the Taiwan International Leather Association since 2021 and previously served as president of the International Union of Leather Technologists and Chemists Societies.

Remaining on the Council for a third and final term, James is a sixth generation leather manufacturer and a director of Scottish Leather Group. Working towards retirement, he is now a non-executive director of SLG, chair of Leather UK, and chair of the charity Providing for People in Paisley.

US threatens EU with 30% tariff rate

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he European Commission has confirmed the receipt of a letter from US president, Donald Trump, threatening base tariff rates of 30%.

Portuguese footwear industry outperforms European peers

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ortugal's footwear sector posted strong export growth in early 2025, outperforming other major European producers.

From January to April, exports reached 26 million pairs, worth €576 million, a 6.2% increase year on year.

In contrast, Spanish exports stabilised and Italian exports declined by 4.1%. With average European growth at 2.8%, Portugal recorded the best performance in the region.

APICCAPS president Luís Onofre attributed the results to continued investment in technology, including €100 million in projects under the national Recovery and Resilience Plan.

Outside Europe, China and Turkey reported export declines of 8.3% and 14.6% respectively, while Indonesia and Vietnam increased overseas sales.

To reduce reliance on traditional markets, Portugal is targeting new regions. Extra-EU exports now represent 19% of the sector’s total. South Korea is a current focus, with 11 Portuguese companies set to take part in a “Portuguese Shoes Showcase” in Seoul from July 15 to 17.

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‘Successful’ second quarter for BMW Group

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he BMW Group has reported flat sales for the second quarter. Between April and the end of June, deliveries of BMW, Mini and RollsRoyce vehicles increased by 0.4% to 621,271 units.

In the first half of the year, the company delivered a total of 1,207,388 vehicles (-0.5%).

The BMW brand delivered 1,070,814 vehicles to customers in the first half of the year, with increases in all regions outside of China.

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President Trump said in the letter that imports in the US from the European Union (EU) would be subject to tariffs of 30% from August 1. He said that the EU would be able to avoid this if it offers “complete, open market access to US, with no tariff being charged to us”.

In response, European Commission president, Ursula von der Leyen, said imposing 30% tariffs on EU exports would disrupt “essential transatlantic supply chains”. She said this would be to the detriment of businesses and consumers on both sides of the Atlantic.

“The EU has consistently prioritised a negotiated solution with the US, reflecting our commitment to dialogue, stability, and a constructive transatlantic partnership,” Dr von der Leyen said.

She insisted that the EU would continue working towards an agreement but would, at the same time, take all necessary steps to safeguard EU interests, including the adoption of “proportionate countermeasures” if required.

Meanwhile, she said the EU would continue to deepen its partnerships with other global trading partners, “firmly anchored in the principles of rules-based international trade”.

Italian industry warns of impact from proposed US tariffs

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talian industry leaders have raised concerns following US President Donald Trump’s announcement of new tariffs on European goods, warning of potentially severe consequences for exports.

Vice-president of industry body Confidustria Vicenza, Giulia Faresin, said the measures, if implemented, would deal “a very hard blow” to Italian manufacturing, particularly in the Veneto region and the province of Vicenza, where hundreds of leather manufacturers are based.

“Veneto companies are facing a situation of growing uncertainty,” she said, citing weak domestic demand and continued stagnation

in the European economy. A combination of tariffs and exchange-rate pressure “risks becoming a perfect storm for our industrial fabric,” she added.

Growth across the board for French leathergoods production

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n its full-year report for the leather industry’s performance in France in 2024, representative body Alliance France Cuir has given a figure of €5.9 billion as turnover for leathergoods manufacturing.

It has explained that this figure relates to the production revenues that France’s 387 active leathergoods manufacturers generated last year. It represents growth of 4.4% year on year.

It also gives a figure of €13 billion for the value of leathergoods exports from France in 2024, an increase of 2.4% compared to the previous year.

Alliance France Cuir has confirmed to Leatherbiz that the €5.9 billion figure corresponds to “the amount invoiced ex works” by the companies that make handbags and other leathergoods products.

For obvious reasons, distributors and exporters that sell those products to customers outside France apply margins and service charges. This is why the export revenues for the sector were €13 billion.

It is important to point out that a large proportion of the output of France’s leathergoods factories did not go for export, but were sold to consumers in France and to tourists visiting the country.

The number of manufacturing companies, 387, is down slightly on the previous year’s figure of 392. However, the total number of people involved in leathergoods production is up, increasing by 4% to reach 32,011.

Leather cover blown on cocaine trafficking ring

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reek police say they have dismantled an international drug trafficking gang that smuggled cocaine from Bolivia to Greece concealed in "sheets of salted leather", Reuters reports.

The case highlights a shift in smuggling methods used to move drugs from South America to Europe, according to officials.

The police, who were acting on a tip-off from the U.S. Drug Enforcement Administration, arrested eleven suspects, including Bolivian and Spanish nationals.

Investigators say the gang operated a laboratory in Athens to extract the cocaine from the salted hides.

Authorities seized at least 300 packages of salt mixed with cocaine, estimating the total weight of the drug at more than 800 kilogrammes.

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Birkin bag goes for millions

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lmost exactly two years after the death of singer and film star Jane Birkin, the original Birkin bag has sold at auction in Paris.

Hermès made the first Birkin bag in the 1980s after a famous chance encounter. Jane Birkin was on the same flight from Paris to

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London as then-chief executive, Jean-Louis Dumas, cousin of current chief executive, Axel Dumas.

She complained that she could not find a tote bag that suited her and was carrying her belongings in a straw basket instead. When she attempted to place the basket in the overhead locker of the aircraft, many of her personal effects fell to the floor. Mr Dumas helped her to pick them up and promised to make something better for her, resulting in the now-famous Birkin bag.

Sotheby’s announced on July 10 that a private collector from Japan had bought the bag “after 10 minutes of heated bidding”. The bag sold for €8.6 million, making it the most valuable bag ever sold at auction.

Leather International ceases publication

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he London-based publisher of Leather International has confirmed that it will no longer produce the title.

Leather International was founded in 1867 and has reported on developments in the leather industry in the 158 years since then.

Now, though, the current publisher, Business Trade Media International, has said in a statement: “We regret to inform you that Leather International has been discontinued and will not be published further.”

Leather students recognised at DMU

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xperimental work with sheepskin, vegetable-tanned leather and alternative embossing techniques featured in this year’s Skin Innovation Awards at De Montfort University (DMU), an event supported by the Worshipful Company of Curriers to promote emerging talent in leathercraft.

The 2025 winner was final-year student Michael Genao, who impressed judges with a sculptural sheepskin jacket inspired by Kukeri, a Bulgarian ritual involving fur costumes and dance. Drawing on his Bulgarian and New York upbringing, Mr Genao combined traditional motifs with contemporary design, also producing a second piece that featured embroidered runes to evoke graffiti-style expression.

The Curriers, one of London’s ancient livery companies, continue to support education in leather and celebrate excellence in leather finishing, a craft central to their heritage.

Two students were named Distinguished Runners Up: Eden Lissart-Jones, who used vegetable-tanned leather, wet moulding and laser cutting to explore the scale and unpredictability of avalanches, and Samantha Gillett-Jones, who developed her own embossing method using acrylic moulds and a printing press. Her floral leatherwork was also recognised at the 2025 Leathersellers Awards.

DMU is one of the UK institutions helping to keep traditional leatherworking skills alive.

The Skin Innovation Awards form part of this effort, encouraging students to engage with leather as both a technical and expressive material.

French tanneries post €424 million turnover

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lliance France Cuir has published a series of detailed reports on the leather industry’s performance in France in 2024.

Thirty-three leather manufacturers operated in France in 2024, employing a total of 1,493.

Alliance France Cuir said just under half of the companies that make leather in France have fewer than 20 employees. It identified ten larger manufacturers, companies with more than 50 employees. It said these larger companies, together, account for 87% of total turnover.

Collectively, these companies produced 2,295 tonnes of finished bovine hides and calf skins.

Those that work with small skins processed 2.8 million skins, including sheepskin, goatskins, pigskins and exotic skins during the year.

In terms of volume, the figure for bovine hides shows a fall of 13.3% compared to the previous year. The decline for small skins was of 7% year on year.

In 2024, all French leather manufacturers together had a combined turnover of €424 million, down by 5.1%. This figure means the people working in tanneries in France generated value of more than €280,000 each last year.

Please look out for follow-up reports in the coming days on the results Alliance France Cuir has published for the performance in 2024 of leathergoods and footwear manufacturers.

Industry groups call for EUDR simplification in 2025 agenda

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coalition of 16 European industry associations, including leather industry body COTANCE, has urged the European Commission to include the EU Deforestation Regulation (EUDR) in its 2025 simplification agenda.

In a joint statement, the signatories, representing sectors from livestock and leather to wood, feed and bioenergy, said the regulation, in its current form, is unworkable and risks creating disproportionate burdens, legal uncertainty, and trade disruption.

The group welcomed the December 2024 decision to delay EUDR implementation but warned that guidance and FAQs issued so far have failed to resolve key concerns. They are now calling for formal amendments to the regulation to ensure a more targeted, riskbased, and practical approach.

COTANCE reiterated its view that byproducts with negligible impact on deforestation should be excluded from the regulation’s scope. It also backed the introduction of a “negligible-risk country” classification to reduce traceability obligations and supported due diligence requirements only for the first operators placing products on the EU market.

The signatories said they remain committed to engaging with the Commission to ensure the EUDR achieves its environmental aims without undermining responsible supply chains.

Natuzzi reports lower Q1 sales and margins

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eather sofa brand Natuzzi recorded a 7.6% drop in net sales for the first quarter of 2025, totalling €78.1 million, with gross margin falling to 34.1% from 36.9% a year earlier.

The company cited a challenging market environment and the impact of reshoring production for its Natuzzi Editions line from China to Italy. The transition, completed in Q1, led to higher costs and contributed to the margin decline.

Chairman Pasquale Natuzzi pointed to global trade duties and geopolitical tensions as key challenges. CEO Antonio Achille added that economic uncertainty continued to weigh on consumer confidence.

A planned 10% price increase for North America has only been partially implemented, further affecting margins. Invoiced sales for upholstered and home furnishings fell to €73.5 million, with Natuzzi Italia and Natuzzi Editions both posting year-on-year declines.

Sales in North America dropped 5.4% to €22.9 million, while West and South Europe fell 13.6% to €24.9 million.

ASIA Vietnam: Leather and footwear exports rise sharply

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ietnam’s leather and footwear industry recorded over $14 billion in export value in the first half of 2025, according to the National Statistics Office, marking a year-onyear increase of more than 10%.

Footwear accounted for approximately $12 billion of this total, up 10.1%, while handbags and related products contributed nearly $2.2 billion, an 11.6% increase.

Vietnam remains the world’s third-largest leather-footwear producer and second-largest exporter, supported by free trade agreements and a competitive labour market.

Despite ongoing challenges, the industry is targeting 10% export growth in 2025, with efforts focused on sustainability, supply chain localisation, and product development.

Seoul is the launch city for Maybach’s new showcase format

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igh-end automotive company Maybach, part of Mercedes-Benz, has opened a new brand centre in Seoul.

The site, in the South Korean capital’s Gangnam district, is on five floors, with a total area of nearly 2,800 square-metres.

One of the floors is home to a studio dedicated to helping customers make customisation choices for bespoke vehicles.

Branded Maybach accessories, including leathergoods, are also on offer at the site.

Maybach first opened a facility of this kind in 2022, choosing Shanghai as the location for a workshop in which to showcase its customer offering. Following this, exclusive Maybach lounges opened in New York and Vienna.

“Now,” the company has said, “there is another dedicated format and space

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showcasing how Maybach continues to innovate by combining tradition with visionary concepts to meet future demands.”

Japanese exhibition highlights leather craftsmanship

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he fifth International Leather Craft Exhibition, sponsored by the Japan Leather Craft Association, has opened in Tokyo.

The association said: “From works of superb craftsmanship to fun works by beginners, this is an exhibition where all kinds of possibilities come together under the common theme of leather.”

The association is selling a limited number of past exhibition catalogues, and will create a catalogue of the current exhibits in due course.

Footwear surge boosts Bangladesh leather export figures

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igures from Bangladesh indicate that leather-sector exports reached a value of more than $1.1 billion in the financial year just ended, the period from July 2024 to June 2025.

This represents 10.2% compared to the previous financial year.

The figure for exports of finished leather was $128.2 million, a fall of 10% year on year.

Shipments of leathergoods brought in $352.6 million, a fall of 2.2%.

Growth came from exports of leather footwear, which reached $672 million, an increase of 23.5% year on year.

AMERICAS PrimeAsia unveils new sustainability strategy

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eather manufacturer PrimeAsia has launched a new long-term sustainability framework, “Consciously Crafted”, in its 2024 sustainability report.

The strategy, structured around four pillars of operational excellence, circularity, climate action and social impact, marks a significant step forward in the company’s efforts to integrate sustainability across its global operations.

Highlights from 2024 include achieving 43% renewable energy use, driven by a new rooftop solar project in Vietnam and a power purchase agreement in China. It also diverted 80% of waste from landfill, reduced chemical solvent use, and increased use of ZDHCcompliant chemicals, with 75% of all chemicals now certified to Level 3.

In traceability, 11% of hides were traceable to the birth farm or group of farms, with a target of reaching 100% by 2030. The company also strengthened its compliance management and internal auditing systems, and completed over 3,200 hours of community service across its sites.

Under the circularity pillar, PrimeAsia continued trials on reusable packaging and explored options for turning leather waste from footwear factories into new products. It said these pilot programmes would help

inform long-term targets for 2030.

Chief executive Jonathan Clark said the strategy aims to “lead with purpose” and ensure that sustainability scales alongside business growth.

US luxury brands remain Tivoli’s target

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talian leathergoods manufacturer Tivoli Group has said despite uncertainties related to tariffs and the weakness of the dollar, the US remains one of the key markets in its growth plan, and it is exhibiting at Lineapelle New York (July 16 and 17) to meet American buyers.

Stefano Giacomelli, CEO of Tivoli Group, said: “Our participation in the event, along with our support for academic training, reflects a broad, long-term strategic vision.

“While retail price increases, to some extent driven by tariffs, penalise us in the short-term, we confirm our long-term commitment to being a strategic partner for American brands as we can guarantee both quality and flexibility, while meeting the growing demand for more local, traceable and sustainable production.

A study, supported by Tivoli and conducted by students from the Free University of BozenBolzano and City University of New York, showed Made in Italy is recognised by international consumers as a source of added value for high-end products.

Mr Giacomelli will also deliver a lecture at New York University’s Stern School of Business as part of the Luxury & Retail MBA programme. The session will delve into topics such as the Italian leathergoods manufacturing supply chain, sustainability and the evolving relationship between brands and suppliers.

Headquartered in Calenzano, in the Florence area, Tivoli produces 500,000 leathergoods and accessories per year, and reported a turnover of €30 million in 2024.

High US tariffs will hurt Brazil’s leather sector

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igures for the first half of 2025 suggest that the punitive 50% tariff rates that the US has threatened to impose on Brazil would have a major effect on the South American country’s leather industry.

National leather industry body CICB has shared figures for the first six months of 2025 that put the value of Brazil’s exports of hides and skins at $572.4 million, a decline of 11.8% compared to the same period in 2024.

The US was the second-most important market for these exports, although a long way behind China.

In the first six months of this year, Brazilian packers, traders and tanners shipped hides and skins worth $178.2 million to China, compared to material worth $78 million to the US. If the threat from US president, Donald Trump, to apply 50% tariffs to all imports from Brazil from August 1 goes ahead, Brazilian hides and skins will become much more expensive for buyers in the US.

Traceability and environmental support in Pará backed by JBS

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ood and tannery group JBS shared an update on its traceability and sustainability initiatives during the “Expedition to the Sustainable Meat and Leather Market of Pará,” organised by The Nature Conservancy (TNC) Brazil.

The company said it has invested more than US$ 7 million in Pará to support livestock tracking and assist small producers, as part of a state-led programme aiming to achieve full traceability of all cattle and buffalo in the region by 2026.

This includes US$ 5 million for JBS’s Traceability Accelerator Program, with 2 million ID tags and 175 readers donated to suppliers and the state agency Adepará. The initial focus is on the southeast of the state, with expansion to other regions planned.

JBS has also invested US$ 2 million since 2021 in its Green Offices in Pará. These provide free support for environmental compliance, including rural registration, regularisation and land restoration. Nationally, the initiative has supported over 18,000 farm registrations and restoration of more than 7,000 hectares.

Tariffs: Brazil demands respect

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n the flurry of July tariff letters that US president, Donald Trump, has sent to trading partners around the world, the country he seems to have singled out for the most punitive measures is Brazil.

He announced that, from August 1, imports into the US from Brazil would incur a tariff rate of 50%.

In response, Brazil’s president, Luiz Inácio Lula da Silva, said he was committed to negotiating an agreement with the US that would prevent the 50% tariffs from coming into effect.

He added: “In Brazil, we resolve things with dialogue and not on the basis of applying pressure. Brazil ought to be respected. It is time that people showed Brazil that respect.

We demand that respect.”

He pointed out that if Brazil’s attempts to negotiate a deal with the US are unsuccessful, its response will be to apply reciprocal 50% tariffs on imports from the US.

Curtiembre Arlei rejects local media accusations

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rgentinian tannery Curtiembre Arlei has issued a statement in response to reports published on the Las Toscas Multimedio platform in Santa Fe, where the company operates its main production site.

The company describes the reports as false and misleading, aimed at damaging its reputation and the personal standing of its officers and directors. It also denies any involvement in local or national political disputes.

Curtiembre Arlei affirms its full compliance with local, national and international regulations, particularly in the areas of environmental and health protection. It adds that it will take legal action, including possible

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criminal proceedings, to address the situation and prevent further publication.

The company says it is available to respond to any queries or requests for clarification.

Senior figure to head up LVMH business in the Americas

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uxury group LVMH is reported to have appointed group veteran Michael Burke as the new head of its business in the Americas.

It has made no formal announcement about this yet, but the Wall Street Journal said it had seen an internal memo confirming not just that it was appointing Mr Burke to the role, but that he had already taken it up.

Michael Burke has held several senior positions at LVMH, most notably that of chief executive of its biggest leathergoods brand, Louis Vuitton.

At the start of 2024, he succeeded Sydney Toledano as head of the LVMH Fashion Group.

LVMH chief executive, Bernard Arnault, said on putting Mr Burke into this new role that the move came at a “strategic time in the Americas”.

Guess prefers plastics to leather

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ashion brand Guess has noted in its environmental and social governance report for 2024 that it has significantly expanded its “preferred materials” in handbags and footwear by replacing leather, nylon and virgin polyurethane with recycled polyester and recycled polyurethane.

It said negative publicity about animal welfare practices can lead to boycotts, decreased sales and damage to the brand's reputation. “NGOs, animal rights activists and other stakeholders can exert significant pressure, resulting in costly legal battles and public relations crises,” it said.

It did not use any certified leather in FY24 or 25 and has not set targets to do so.

It stated, “As part of our commitment to protect our environment, we aim for our use of animal-derived material in our products to uphold our commitment to the ethical and humane treatment of animals.”

However, it added: “Improving animal welfare practices often requires investments in infrastructure, training and technology, which can lead to higher production costs.”

The company reported revenues of almost $3 billion in the 2025 financial year.

August deadline for trade deals or April tariffs ‘boomerang back’

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he US government sent formal letters to trading partners around the world on July 7 warning them to accelerate the process of agreeing a trade deal with the US. US president, Donald Trump, announced an extensive range of punitive tariff rates on trading partners in April. In mid-May, the president postponed the imposition of the highest tariff rates for 90 days. Those 90 days are up on July 9.

Recent comments from US Treasury secretary, Scott Bessent, confirm that the letters would begin to reach trading partners on July 7, giving them a few more weeks to

secure a trade deal with the US. He told broadcaster CNN: “President Trump is going to send letters to some of our trading partners saying that if they don’t move things along, then on August 1, they will boomerang back to the April 2 tariff level.”

In recent weeks, Vietnam and the UK have signed new trade deals with the US. Some of the detail still requires clarification. For example, President Trump claimed that, under the new deal, imports from Vietnam would be subject to a tariff of 20%. Imports from third countries moving to Vietnam for shipping to the US will be subject to tariffs of 40%.

With regard to products shipping from the US to Vietnam, these will move duty-free, President Trump said. No documentation so far confirms that the government of Vietnam has agreed to this.

Stark impact of tariffs on US beef exports to China

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romotions body the US Meat Export Federation has reported “steep declines” in shipments of beef to China.

Across the board, in the first five months of this year, the US exported 508,293 tonnes of beef, with a value of more than $4.1 billion.

These figures represent declines of 5% in volume and 3% in value.

Taking the figures for May in isolation, beef exports reached 97,266 tonnes in volume, with a value of $798.7 million. Compared to the figures for May 2024, these figures show a fall of 12% in volume and of 11.5% in value.

For that month, exports of beef to China were 1,400 tonnes. The value of these shipments was less than $15 million. US beef exports to China for that one month were down by 91% in volume and by 90% in value year on year.

In April and the first half of May, China’s tariff rate for imports of US beef was 147%.

Following a temporarily easing on these tariff rates for 90 days, which the two countries announced on May 14, China’s rates were still 32% for US beef.

USMEF chief executive, Dan Halstrom, said: “The need for progress in the US-China trade negotiations is extremely urgent because tariffs could soar again on August 12. This deadline is already impacting exporters’ decisions about whether to continue producing for the Chinese market.”

There were some compensations in other markets. Beef exports to South Korea in May were the largest in more than two years.

was developed in collaboration with the Ministries of Agriculture, Industry, and Labour and Skills. According to UNIDO-LISEC National Project Coordinator, Wondu Legesse, it will form the basis for training manuals in TVET colleges and related institutions, aiming to address persistent quality issues in the supply chain.

UNIDO has also revised the national regulatory framework for hides and skins and handed over an automated slaughtering machine to an Ethiopian abattoir to help reduce wastage. Other interventions include upgrading slaughterhouses, establishing mobile abattoirs, and expanding training for certified professionals.

School and military sectors key for Rwandan shoemakers

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he Africa Leather and Leather Products Institute (ALLPI) and the International Trade Centre (ITC), as part of the EU-funded Market Access Upgrade Programme (MARKUP II), have hosted workshops for footwear makers in Rwanda with the aim of upskilling the participants and adding value to their offerings.

The training focused on material sourcing, market research and adapting designs to meet consumer demands.

A primary objective of the programme was to empower SMEs to make products for public sectors, such as military boots, school shoes and formal shoes for the army.

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AFRICA UNIDO develops training curriculum for Ethiopian leather sector

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he United Nations Industrial Development Organisation (UNIDO) has developed a draft curriculum to improve the production, handling, and marketing of raw hides and skins in Ethiopia, as reported in The Ethiopian Herald.

The curriculum is part of wider efforts to modernise the country’s leather sector and

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