The Value Of Hides
Leather, leather everywhere from the seats in your Beamer to your living room sectional. And where does all this all come from. Those slippers, boots belts, coats even computer cases are all by products of the ranching Industry that we tend to overlook. Welcome to open Range I’m Susan Allen, after the break gas prices go ski high and guess what so do cattle hides. Cattle hides are another revenue source for producers and packers that tend to go under the radar when we think of the contributions of the cattle industry. While the cool brindle cowhide on my living room floor cost couple hundred bucks retail the typical commercial hides sell for $82 dollars,the highest price in nearly ten years. Analysts believe that just as the cost of gasoline continues to go up the price of leather will continue to increase as well. Part the reason is the fact we have the smallest national cattle herd numbers in the US since the 1950’s. There are also less hides from importers like Australia. Leather is a considered a luxury product thus when countries are an economic downturn, the demand drops but as recently seen in places like India and China when a nation becomes more affluent and a middle class emerges there is an increase in the demand for luxury leather goods. So in the end the economic value of just cattle hides alone accounted for nearly 1.4 billion dollars in export profits up 68 percent from last year.