Prices and warranty
Bovine leather is a by-product of the meat and dairy industry. Consequently, only so much leather can be produced as results from meat consumption. The availability of leather therefore directly depends on the supply of unprocessed hides from the meat and dairy industry. Accordingly, prices vary according to supply and demand. Cowhide supplies are slightly declining in Europe whereas they are increasing in Asia and South America. High-quality leather, however, can only be produced from European hides. Max Gimmel AG buys its hides exclusively in Europe. They may be more expensive than on other continents but also allow higher qualities to be produced.
The purchasing of unprocessed hides is determined by the following factors:
- Unprocessed hides can at most be purchased 3 months in advance; long-term contracts for fixed prices are not possible.
- The price depends on the demand in a seller’s market where there is only a limited supply.
- Cattle diseases and pandemics have a considerable influence on the prices of cowhides since a sudden stop in slaughtering immediately cuts off the availability of the raw material.
- The price of unprocessed hides mainly depends on the beauty of the skin. Flawless rawhides are of a substantially higher value than hides with numerous scratches and scars.