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America has no use for hides, so leather prices plunge

latimes.com

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Re: America has no use for hides, so leather prices plunge

#51

Post by kevin_thibedeau »

luxuryballs wrote: post #39
matheweis wrote: post #7

“According to Hidenet, a leather markets research firm, a hide from a branded cow went for as little as $4 the week of July 15, down from as much as $81 just five years ago.” Wait, what? Consumer trends have shifted so radically in 5 years that even with a white hot economy leather prices have dropped by 20x?

I wonder how much of this is because of the increase in cheaper faux leather, maybe even also combined with inflation, you may be paying the same numerical amount for poly leather as you did for genuine leather 20 years ago. Also I guess if a company can cut costs by using the improved poly leather and the consumer doesn’t notice or care then that’s the move.

More like cheap Chinese bonded leather which permeates most sub-$100 leather goods.

I make a pass on buying most leather products because it's so hard to find decent quality without an overinflated price. I don't even dare buying it online unless its a niche where substandard materials are unlikely.

Re: America has no use for hides, so leather prices plunge

#52

Post by inamberclad »

gumby wrote: post #45

I never liked leather as a material: heavy, easily scratched, etc. when I was a kid it was used in everything from backpacks to camera cases. Leather seats in cars get hot in ways cloth ones do not. Etc. Good riddance! Well, I have leather hiking boots. Heavy but highly functional. It always seemed crazy to me that leather goods, while functionally inferior in most cases, are considered the ”luxury” versions. Some so…

My boots scratch because they're coated and dyed oddly, drives me nuts. All the scratches on my belt blend in over time.

I love the stuff (thank you, cows), it's a heavy, reliable organic construction material. Lasts a lot longer than fabrics.

The trick is to get 'full grain' leather, that's the actual thickness of the cowhide and doesn't have backings or multiple layers glued together.

Re: America has no use for hides, so leather prices plunge

#53

Post by tomrod »

matheweis wrote: post #7

“According to Hidenet, a leather markets research firm, a hide from a branded cow went for as little as $4 the week of July 15, down from as much as $81 just five years ago.” Wait, what? Consumer trends have shifted so radically in 5 years that even with a white hot economy leather prices have dropped by 20x?

A couple of points to keep in mind:

- After processing, leather doesn't rot. Thus it is a durable good, and stockpiles can build up

- Texas and other parts of the nation had massive droughts a few years back. This resulted in herd culling, which could have increased the supply of available hides at the time.

Re: America has no use for hides, so leather prices plunge

#54

Post by big_chungus »

luxuryballs wrote: post #39
matheweis wrote: post #7

“According to Hidenet, a leather markets research firm, a hide from a branded cow went for as little as $4 the week of July 15, down from as much as $81 just five years ago.” Wait, what? Consumer trends have shifted so radically in 5 years that even with a white hot economy leather prices have dropped by 20x?

I wonder how much of this is because of the increase in cheaper faux leather, maybe even also combined with inflation, you may be paying the same numerical amount for poly leather as you did for genuine leather 20 years ago. Also I guess if a company can cut costs by using the improved poly leather and the consumer doesn’t notice or care then that’s the move.

Leather still is a durable and useful material, if properly cared for. Assuming its production as a by-product of the slaughterhouse, it could be considered more sustainable than plastic (it can biodegrade).

Re: America has no use for hides, so leather prices plunge

#55

Post by ngngngng »

I'm actually in the market for a leather jacket and boots right now, but I certainly haven't noticed prices going down at all.

I'm finding leather jackets extremely difficult to shop for. Online advice is all over the place, and I want something to last a lifetime.

Re: America has no use for hides, so leather prices plunge

#56

Post by lwhalen »

ngngngng wrote: post #55

I'm actually in the market for a leather jacket and boots right now, but I certainly haven't noticed prices going down at all. I'm finding leather jackets extremely difficult to shop for. Online advice is all over the place, and I want something to last a lifetime.

Depending on where you're located, it might be worth checking out Langlitz Leather in Portland, OR. I have two of their jackets, my girlfriend has one, and I have friends who have them as well. They are absolutely "buy once, cry once" garments, I suspect my family will be fighting over mine when I am (eventually) dead.

Re: America has no use for hides, so leather prices plunge

#57

Post by pvarangot »

ngngngng wrote: post #55

I'm actually in the market for a leather jacket and boots right now, but I certainly haven't noticed prices going down at all. I'm finding leather jackets extremely difficult to shop for. Online advice is all over the place, and I want something to last a lifetime.

Made to measure starts at 1kish and bespoke from a nice workshop at around 1.5k to 2k, for normal cow or sheep or goat leather. More than that and you are paying for the brand and less than that and your jacket is probably from an Indian or Chinese sweatshop, like All Saints.

The retail clothes industry is getting insane with all the markup from actually sourcing the garment, the smart choice for expensive pieces if you really know what you want is having it made.

Re: America has no use for hides, so leather prices plunge

#58

Post by stonogo »

lwhalen wrote: post #47

Interesting. I suppose I'm one of the few holdouts who still love leather clothing (motorcycle jackets, you weirdos ;-)) and accessories (I have multiple Saddleback Leather bags, wallets, etc). I don't see those items getting cheaper any time soon, I guess that indicates their profit margins have gone through the roof in the interim.

The expense in producing fine leather goods is the labor costs. It's a craft which requires much training and/or experience, and highly-skilled leatherworkers do not come cheaply.

Re: America has no use for hides, so leather prices plunge

#59

Post by brandmeyer »

matheweis wrote: post #7

“According to Hidenet, a leather markets research firm, a hide from a branded cow went for as little as $4 the week of July 15, down from as much as $81 just five years ago.” Wait, what? Consumer trends have shifted so radically in 5 years that even with a white hot economy leather prices have dropped by 20x?

Beef and hide are coupled goods. One cow produces about X kg of beef and Y m^2 of hide. If demand for beef is extra high, then it will depress the price of hide because the ratio in supply is roughly fixed between them.

There are other examples in modern society. Chlorine and caustic soda are produced in strictly fixed ratios from NaCl salt and electricity. Extra demand for one will depress the price of the other. The effect is quite sharp in this example, since both products are expensive to store.

Similarly, the hydraulic fracking industry has somewhat depressed the market price of natural gas in the US. The miners are really hunting for high-value liquid hydrocarbons. The gaseous hydrocarbons are quite low-margin by comparison, but come along for the ride in the shale being exploited right now. The effect is more modest in this example since new home construction, new electricity production, and industrial process heat can all be biased towards natural gas. But its still there.

If electric and other high-efficiency propulsion technologies takes off enough to impact gasoline consumption, then a side effect in the US will be an increase in natural gas prices. The source of the increase is twofold: Decreased production of liquid hydrocarbons will decrease supply of gaseous hydrocarbons, and increased demand for electricity will raise demand for gaseous hydrocarbons.

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