LBizMarketIntelligence_281025

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Leatherbiz Market Intelligence executive summary:

• Political instability continues to create uncertainty across the global leather sector

• Leather demand is shrinking, prices are falling and producers are struggling to adapt

• The European leather industry’s profitability has eroded since around 2015, worsened by a range of factors including covid-19, high energy costs and regulatory burdens

• AI tools are emerging for defect detection but have yet to deliver major commercial benefits

• Short-term prospects depend on new orders before year-end

• So far, any optimism about a recovery in 2026 remains unsupported by order volumes.

MARKET INTELLIGENCE

The past two weeks in the leather pipeline have been marked by increased uncertainty. This uncertainty continues to stem largely from general instability in the political arena. Policies and statements from the White House are having a tangible impact on many economic and business decisions.

This is not the only issue, or even the main issue, currently facing the leather sector. We are presently in a phase that is likely to have a destructive effect. There are too many different factors hindering production and the use of leather. Leather is no longer being used sufficiently as a material in consumer goods production. As a result, the market for leather is shrinking and this is accompanied by falling prices. In theory, lower prices should stimulate demand, eventually leading to renewed growth and rising prices. In practice, reality has looked very different for quite some time.

Leather demand continues to decline, capacity adjustments are slow and delayed, prices are falling, and the ability to adapt costs and capacity appropriately is becoming increasingly exhausted. Otherwise, the development could almost be traced straight from an economics textbook: when prices fall, those with the highest costs and lowest returns are the first to face the most severe consequences.

This topic has been discussed for some time, and we have repeatedly highlighted this issue in relation to the European leather industry. Some observers rightly note that no dramatic consequences have yet occurred. However, looking more closely at Europe, that is only partly true: several adjustments have indeed taken place, even if they were not directly the result of corporate decisions or market forces.

Consider, for example, the reduction of production capacity caused by the fire at Ecco’s tannery in the Netherlands in May, the voluntary closure of Vitelco’s leather factory in the same country in April, and the reduced capacity utilisation at a major contract tannery. Together, these already represent a significant decline in available capacity in Europe in 2025.

Additionally, there have been voluntary production cuts throughout the European leather industry. Although no precise figures are available, it is clear that substantial unused capacity exists in Europe’s major tanning centres, either because there is no market for certain products or because production has become uneconomical.

Looking at industrial history in the western world, there are many parallels with past overcapacities. Time and again, decisionmakers failed to recognise the signs early enough. For outsiders, such analysis is easy, but the reality is that businesses must confront their situation clearly and rationally, not guided by hope, but by a serious assessment of their individual circumstances.

Those who can demonstrate sound reasoning and clear strategies to respond successfully to these conditions will ultimately see better times again. Anyone familiar with the history of the European leather industry knows that similar situations have occurred multiple times over the past decades, for example in the 1960s, 1970s and 1980s.

However, the industry’s adjustments in the decades following World War II occurred in much shorter cycles than they do today. We have now experienced more than 30 years without major structural crises in the European leather industry. The opening of eastern European markets and rising

prosperity created new demand faster than local competitors could emerge. This was reinforced by the growing popularity of European quality brands in consumer goods. Finally, a boom in automotive and luxury leathers and leathergoods marked the end of a long period of strong profitability in Europe.

No one can pinpoint the exact date of the turning point, but it likely occurred between 2015 and 2019. The rapid success of plasticbased sneakers and the effects of the covid19 pandemic, followed by subsequent short-lived recoveries may have masked the underlying trend but did not reverse it. Since the end of the pandemic, negative developments have accelerated, exacerbated by the war in Ukraine, sanctions, rising energy costs and, more recently, US trade policies.

Labour shortages, sharply increasing wages, a temporary social trend away from animal products, self-inflicted certifications and audit charges and an industry-stifling EU regulatory approach have all undermined the economic foundation of large parts of the European leather supply chain.

Critics may say we have been painting too dark a picture for some time, as no major disruptions have yet materialised. After all, all factories reopened after the summer break, the Milan trade fair saw nearly the same number of exhibitors, and no one has publicly discussed plant closures. From this perspective, one could argue that a negative outlook is counter-productive.

However, that might be part of Europe’s broader problem: a general unwillingness to face reality and a preference to promote the ‘think positive’ mindset as a guiding principle. The line between negativity and realism, however, is very thin. Even now, many still claim that 2026 will mark a turnaround. So far, this is not supported by growing order volumes.

What is clear, however, is that capacity utilisation and overall business conditions in the European leather industry remain weak. Some of the missing volume in Europe has undoubtedly shifted to south and south-east Asia for cost reasons. China, however, is not the solution either. Its market also faces difficulties, although for different reasons.

For European production, this means that the minimum prices needed by manufacturers to operate profitably are no longer realistically achievable. Furthermore, several downstream leather processors have relocated their operations abroad. Markets within Russia’s sphere of influence remain largely inaccessible. If costs, logistics and delivery times continue to constrain market potential, the situation will not improve anytime soon.

It now remains to be seen what conclusions individual companies will draw. At present, smaller production batches, flexibility, quality, creativity and a clear definition of market potential and individual price thresholds appear to be the foundation for decisionmaking in Europe.

These may sound like pessimistic updates but they are, in our view, necessary ones. Every aspect must be considered, as this is a chain, not a single link. The chain is only as strong as its weakest part, and although much of this discussion happens behind closed doors, it is certainly taking place.

Given the continued lack of dynamic market activity along the leather value chain, it is worthwhile to also look at other, equally relevant topics.

One of the most interesting developments at present is the discussion surrounding artificial intelligence (AI) in the leather industry. Of course, everyone talks about it, and the impact on stock markets is visible.

From schoolchildren to retired people, nearly everyone now is experimenting with AI tools. Yet, the true potential remains largely unexplored.

In the leather industry, current AI applications focus mainly on visual recognition of defects and characteristics. This may save some labour costs but we are not fully convinced by the current enthusiasm. Unless detecting defects in this way leads to significantly higher sales revenues, which, given current price levels, is not happening, it is not the breakthrough many claim it to be.

When both sellers and buyers deploy their own systems to verify each other’s results, as often happens today, the benefits become questionable. Undoubtedly, however, imagerecognition systems combined with robotics will offer substantial potential, especially when implemented from the raw hide stage onward.

If the technology can help tanners determine hide substance and suitability, it

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could deliver major cost savings and new revenue opportunities. We are only at the very beginning. Only when the entire production process is digitally interconnected will AI’s true potential in the leather value chain emerge. Today’s defect-detection systems are merely a small, first step. This is important, but currently useful to only a few.

Let us end this section on a more positive note. Our colleagues from Leather Naturally recently pointed out a development we have also observed for some time: those who have spent time browsing duty-free shops recently will have noticed a growing number of perfumes featuring leather-inspired scents.

What was once a minor note in a fragrance description now often makes it onto the bottle itself, Ombré Leather by Tom Ford being perhaps the most prominent example. It is just one of many such fragrances launched recently; the aroma of vegetabletanned leather is clear and dominant in so many new offers.

What does this tell us? Such fragrances would not be marketed in this way unless consumers found them appealing. It also reinforces our earlier view that traditional vegetable-tanned leather, with its natural aroma and unique characteristics, could indeed pave the way for a renaissance of genuine leather.

We have already touched on the subject of splits in earlier issues. Currently, and contrary to the general cattle-hide market, demand in the protein sector and for splits used in suede production exceeds supply.

Experts debate whether this imbalance is solely due to reduced leather-production output or also reflects a real increase in demand. Either way, supply currently does not meet demand and it will be interesting to see what conclusions are drawn for the coming seasons. There are several possible approaches to address this issue, although willingness among manufacturers to deviate from fixed specifications appears limited.

As for sheepskins, the trend described in previous reports continues: rising wool prices are making the use of wool from sheep and lambskins increasingly attractive again. The main problem remains misaligned price expectations along the value chain, which still prevent a real revival of the sheepskin sector. However, if wool demand remains stable, it is only a matter of time before this window reopens. In the meantime, a large portion of this raw material continues to be destroyed.

In our view, the next two to four weeks will be decisive. The structural problems we have described will not disappear, but the key question now is whether the statements from many major brands, pointing to 2026 as the end of the decline, will actually prove true.

Talk is cheap; what matters are firm orders. We do not expect any significant impulse from the automotive industry in this respect. Time, however, is becoming a critical factor. The leather industry, in Europe and China, urgently needs a secure order situation for the coming months.

If this fails to materialise, supply chain

disruptions could occur that would be difficult to repair. A major turnaround, however, remains unlikely. The Christmas holidays and the subsequent Chinese New Year holiday (February 17) will again serve to interrupt any momentum.

US PERSPECTIVE

New figures for export sales of cattle hides are unavailable because the US government website that publishes the information is not be updated during the government shutdown there.

There are updates on some hide prices. The most recent showed Colorado branded steers weighing 63-65 pounds at $13 per piece, with heavy Texas steers of 60-62 pounds still at $12 per piece.

Dairy cow hide prices were lower again, with northern dairy cows at $10.50 and south-west dairy cows at $10. Northern branded cows were down to $4 and south-west branded cows reduced to $3.50, 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.

Actual Slaughter Under Federal Inspection

Once again, no new figures for cattle slaughter are available because the US government website that publishes the information is not being updated during the government shutdown there.

Cattle markets USA

Processors finished last week with a largerthan-expected slaughter volume and it was amid rising box prices and at a time when futures prices are plummeting. The market action this past week was confusing. This week will provide more clarity as several international trade issues will deliver information about future trade policies. China and the US have reached agreement on a framework for future trade and Trump will meet with President Xi Thursday to firm up the deal. Separately, Mexico will be meeting with USDA about screwworm. Some expect agriculture secretary Brooke Rollins to announce plans for reopening the border. One thing opening the border will not do is cause feedyard placements to jump above prior year figures.

Sales in the north last week ranged from $235-$239, and were mostly at $238 or $239. Earlier in the week dressed sales were at $370, which was $2 lower. A few sales in the south were at $240 earlier in the week turning to $238 by week’s end. The entire cattle complex was demoralised by futures and Presidential statements.

No one expected cattle prices to rise endlessly into the future. All markets that go up, must come down at some point. In the history of commodities, prices always start moving down well before the advent of the shortest supply of the product. Traders anticipate and adjust pricing in advance, in

anticipation of the increases in product supply in the future.

Choice box prices were higher in the face of larger slaughter numbers, indicating improved demand for beef. The time may have come for cutout reports to deliver equal attention to the choice-prime spread. Select and prime occupy the same volumetric space in beef sales today.

Replacement prices have been placed on hold until more information is available about government intervention in the markets. The reset on prices is not only in the futures markets but also throughout the country as buyers put purchasing plans on hold awaiting clarification of the administration’s plans.

Grain prices responded to the news that a framework for trade was agreed with China. China is an important buyers for many of our agricultural products but none more important than the grains. Corn and wheat jumped in overnight trading. The

government shutdown continues denying service to the nation’s farmers. Elevators are holding the basis as harvest progresses in the plains. Corn basis levels in Guymon, Oklahoma, are at +$0.60, basis the December contract.

GERMAN PERSPECTIVE

This week: After a brief uptick in market activity from Asia last week, conditions calmed down again noticeably this week. This development should not surprise anyone who looks at the leather business with a realistic view. Regardless of which reports one reads, whom one speaks to, or which sector one examines, the number of companies reporting a lack of orders continues to rise daily.

This would be less concerning if the calendar did not already show the end of October, a point in time when the leather industry typically has a clear outlook for the

LATEST HIDE AND SKIN PRICES FROM GERMANY

winter season, which is usually the strongest production period of the year, apart from breaks around Christmas and the Chinese New Year. This is normally the phase when tanneries are running at full capacity.

At present, however, there is hardly a production region or segment where underutilisation and order shortages are not being reported. Even if precise figures are lacking and much is based on estimates or sentiment, it seems fair to assume that at least 20% to 40% of production capacity across most sectors and markets remains unused.

The optimists still expect improvement and interpret the situation as a temporary delay owing to general uncertainty, not as a sign that orders may never return. For now, order volumes clearly do not cover the available raw material supply. As a result, the industry must gradually but inevitably adapt to new conditions and trade flows for hides and skins. As long as meat continues to be produced, the by-products must also be utilised. That will remain the case. Other regions are already further ahead in this respect than Europe, for various reasons.

Meanwhile, the European Commission’s new proposals regarding the implementation of the European Union Deforestation Regulation once again triggered heated debate. This is yet another example that expertise and EU bureaucracy often fail to align. Once the bureaucratic machinery starts turning, it becomes nearly impossible to stop, and the focus shifts to principles and maintaining positions rather than practical solutions. The option to simply halt a wellintentioned but misguided approach is rarely on the table. We will see whether the EU Parliament, as a last instance, intervenes.

Sales activity in the hide market was fairly limited this week. With Asia remaining quiet and no new contract programmes concluded in Europe, trading was confined to occasional spot deals, either particularly cheap, highly specific or special in nature. None of these transactions, however, reflect the broader

market situation. Prices remain largely stable, though there is currently little reliable data for a serious overall market assessment.

The kill: There were also no significant changes in slaughter numbers. Despite noticeably colder weather, volumes did not increase, and various explanations are being offered. Ultimately, it comes down to the fundamentals: livestock prices, meat demand and meat prices determine slaughter activity. Outlooks for the coming weeks and months differ widely. Many expect that the usual seasonal increase will be rather weak this year, yet few can answer the question of what will happen to slaughter-ready cattle if that is the case. We remain confident that slaughter volumes will still rise significantly before the year ends.

What we expect: Overall, we sense that pressure on the market and on prices is slowly building again. This may not yet be clearly felt in the next week, but with each passing week of weak sales and uncertainty over whether volumes can be placed before the Christmas break, the question becomes increasingly relevant: will price reductions truly be able to stimulate demand? In the end, only rising leather demand and a stable protein market can sustainably ensure sales.

LONG READ

Leather and the Circular Economy: Thought Leadership

Water-positive

Luxury group Kering has released the first details of a new water strategy. It wants to move beyond just reducing the consumption of water that production of its collections entails. Its aim is to “restore, regenerate and transform” water cycles in ten hotspots around the world.

Luxury group Kering has announced a new water strategy. It says launching this dedicated policy on water, its Water- Positive Strategy, is “a pivotal stage” in a wider science- backed approach to sustainability. The new strategy consists of three key programmes through which it will aim to deliver “on- the-ground transformation and water-positive outcomes”.

Because water is “fundamental to the global economy” and to human survival, Kering says it wants to go beyond reducing the volume of water it and its suppliers consume. It wants to set up projects that will help restore water cycles and ecosystems. It wants to achieve “water-positive impacts”, actions that will improve the quality, quantity and accessibility of water in ten priority, ‘hotspot’ regions. So far it has only said exactly where the first of these ten hotspots will be but it has specified the ten countries. They are Peru, Argentina, South Africa, France, Spain, Italy, Mongolia, Australia, Turkey and India.

Watershed events

The first of the three programmes is one that will aim to concentrate the group’s sourcing strategies on materials that can “alleviate pressures on nature and water”. Production of the leather Kering uses in bags for Bottega Veneta, Gucci and other brands is at the heart of this, although its focus will also be on recycled fabrics and “innovative alternatives”.

This will include increasing the volume of materials deriving from regenerative agriculture, which, the group explains, will help reduce pollution and replenish watersheds. Watersheds are areas of land on which rain or snow collect and run from there into a lake, river or sea. In many parts of the world, climate change, with long periods of drought and unpredictable rainfall, has degraded soil in watersheds and harmed communities’ ability to grow food crops and, therefore, to live. All too frequently, floods are also a threat to life.

Non-profit group the Stockholm International Water Institute (SIWI) says governments have learned the hard way that projects to repair watersheds are of great importance. In 2017, in Peru, one of the ten Kering hotspots, floods and landslides killed 138 people and made 700,000 people homeless. The government accepted the need to restore watersheds in the areas affected. Many coastal regions suffered, with the Moche watershed near Trujillo, the country’s thirdlargest city, among the worst hit.

The government spent $1.5 billion on “strengthening the resilience of affected watersheds”, SIWI says. This investment focused on infrastructure, repairing defences, improving flood control and putting earlyalert systems in place. Other investment has followed in what SIWI refers to as “naturebased solutions to reduce water and climate risks”. This has included the reforestation of 45,000 hectares of land.

Last year, the Food and Agriculture

Organisation (FAO) of the United Nations secured funding for watershed projects in seven countries in the Americas. They will work together to address the water security of 12 large watersheds. The aim is for this to improve the management of 1.8 million hectares of protected areas and restore 300 hectares of wetlands, which will directly benefit 350,000 people.

Home truths

Water concerns of a different kind came to Kering’s home city, Paris, when it hosted the 2024 Olympic Games. One of the many stories that attracted global attention was the effort the authorities had gone to to make the River Seine suitable for some of the swimming events. Financial media outlet Bloomberg said that the clean-up programme had cost €1.4 billion over nine years in the lead-up to the Olympics. Water-quality tests led to lastminute cancellations of important training sessions in the river for competitions including the triathlon and marathon swimming. In the

end, athletes did swim in the Seine, although there were high-profile instances of illness among the participants afterwards. River swimming had been banned in the French capital since 1923.

A legacy of the Olympics and of the years of preparatory work and investment, plus some post-Games remedial work, is that Parisians will be able to swim in the river at three designated points from July 5 until August 31, 2025. The United Nations Environment Programme (UNEP) has called the Seine clean-up programme a success story and has urged other cities and national governments around the world to follow in Paris’s wake. This is a message UNEP has been communicating for years. The summer before the Paris Olympics, it supported endurance athlete Lewis Pugh in his swim of the Hudson River. He swam the 517- kilometre length of the river, from the Adirondacks to New York Harbour (wearing a UNEP swimming cap) to raise awareness of rivers’ vulnerability.

Supplier involvement

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The Seine saga may have helped inspire Kering’s Water- Positive Strategy, but the first watershed on which it aims to make a waterpositive impact is that of the River Arno in Tuscany. This ties in with the second of the three programmes that make up the strategy; Kering is committed to working with strategic suppliers to tackle shared challenges. This part of Italy is home to one of the most important leather- manufacturing communities in the world.

Italy’s national tanning industry association, UNIC, says the towns of Santa Croce, Castelfranco di Sotto, Montopoli, San Miniato, Bientina, Santa Maria a Monte and Fucecchio are home, collectively, to the largest number of tanneries in Italy. They specialise in making high-quality leather from calfskins and small and medium-sized bovine hides, serving highend leathergoods brands in Italy, France and elsewhere, including Kering’s. Together, the Tuscan tanneries account for nearly 30% of the entire turnover of the Italian leather industry. Like the major cities of Florence and Pisa, some of these towns are on the banks of the Arno; none is more than a few kilometres from the river.

Suppliers there will play their part in turning the Kering strategy into reality. They will do this by favouring the use of chrome-free and “low-impact tanning agents” in their production set-ups, the group has said. Its conviction is that these leather chemicals will help increase water efficiency inside the tanneries and improve water availability and water quality in the communities in the Arno watershed. This spreads across an area of more than 8,000 square-kilometres.

Increased efficiencies inside the Tuscan tanneries will deliver, by 2030, a reduction of 20% in the water withdrawal in the Arno basin of facilities the group owns there. It will roll similar innovation programmes out in other parts of the world and, by 2035, will achieve a reduction of 35% in the water withdrawal of all group tanneries.

Lab work

The third strand of the Water-Positive Strategy will be a programme of new, dedicated water-resilience labs. The group has said it will set one of these up in each of the ten priority areas by 2035, in partnership with regional stakeholders, suppliers, other companies, local communities, and public authorities. Tuscany, again, will be the first of the ten to open its lab, in autumn 2025.

According to Kering, the water-resilience labs will encourage innovation and work to join up the “isolated efforts” of different stakeholders to “create momentum for a water- positive paradigm shift”. They will seek to set common goals and common metrics to show progress. Water challenges are global, the strategy says, but solutions to those challenges must be local and collaborative. The labs will serve as a cornerstone of the commitment to water resilience, promoting collective action and creating lasting positive impact.

The group’s chief sustainability officer,

Marie-Claire Daveu, says: “It is crucial that water commitments evolve from a ‘reductiononly’ approach to become water-positive, regenerating and replenishing water and ecosystems associated with all business activities.” She adds that Kering’s new strategy will be transformative, and will deliver “measurable water-positive outcomes to enhance social, environmental and economic resilience, and contribute to building up the availability of clean water for all”.

NEWS EUROPE

UNIC highlights the main changes in new EUDR proposal

Italy’s national tanning industry body UNIC has said it will continue to monitor progress on the European Union Deforestation Regulation (EUDR).

Following a new proposal for amending EUDR, which the European Commission published on October 21, UNIC said it would keep providing its member companies with insight and up-to-date information about their obligations under the regulation.

It noted that the proposal still requires the approval of the European Parliament and of the Council of the European Union (a decision-making body comprising ministers from the governments of the 27 member states).

From the October 21 proposal, UNIC said the main new points of interest included changes to the timings. EUDR will still come into application on December 30, 2025, for larger companies. However, the proposal says the authorities should only begin to carry out checks and other measures related to enforcement of the regulation from June 30, 2026.

Micro and small operators will have until December 30, 2026, before EUDR comes into application for them, which gives them an extra six months to prepare.

According to the European Union’s formal definition, a micro-enterprise is one that has fewer than 10 employees and an annual turnover of less than € 2 million. A small enterprise has fewer than 50 employees and an annual turnover of less than € 10 million.

UNIC has also highlighted the new proposal’s suggestion that micro and small operators should have to provide information about their compliance with EUDR through a “one-time simplified declaration”.

This will apply to suppliers of raw material as well as to downstream operators who use the raw material. This will replace their obligation to provide full due diligence information.

The full text of the European Commission’s new EUDR proposal is available here.

A longer article about the work UNIC has done to help companies, in Italy and beyond, prepare for EUDR will appear in the OctoberNovember issue of World Leather.

Performance still “far below the market” for Kering

Paris-based luxury group Kering has reported revenues of € 11 billion for the first nine months of 2025. This represents a fall of 14% year on year.

The figure for its biggest brand, Gucci, was just under €4.4 billion, which is 24% less than the brand’s revenues in the first nine months of last year.

For Yves Saint Laurent, revenues were €1.9 billion, down by 10% year on year.

As it has done throughout the extended downturn in the parent group’s fortunes, Bottega Veneta held its own. It achieved revenues that were just under €1.25 billion, flat with the figure for the same period in 2024.

Kering’s new chief executive, Luca de Meo, who took up the role on September 15, said there had been an improvement in the group’s figures in the third quarter, but that its performance remained “far below that of the market”.

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A STEP AHEAD IN AUTOMOTIVE

FINISHING

He said this had reinforced his determination to work on all dimensions of the business to return the group and its brands “to the prominence they deserve”.

Mr de Meo added: “We are working relentlessly on our turnaround, as shown by our recent decisions.” The decisions he referred to include the appointment on September 17 of Francesca Bellettini as the new chief executive of Gucci, and a new strategic partnership for beauty and fragrance products with L’Oréal.

Brussels proposes limited EUDR delay and lighter rules for small operators

The European Commission has proposed a targeted delay to the EU Deforestation Regulation (EUDR), granting small and micro operators an extra year to comply while keeping the 31 December 2025 start date for larger companies.

The plan, reported by Euractiv, would postpone enforcement for small operators

Supplying innovative

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until December 2026 and introduce a new category of “micro and small primary operators.” Farmers and foresters in low-risk countries – including EU member states, the UK, the US, and Australia – would only need to register once in the EU’s IT system and provide basic plot details.

Other adjustments include a six-month suspension of penalties for non-compliance and a streamlined due diligence process, requiring only the first company placing goods on the EU market to prove they are deforestation-free. The Commission said the changes aim to prevent system overloads and ensure smoother implementation.

Reactions among MEPs have been mixed. Greens criticised the proposal for diluting environmental safeguards, while centrist and socialist groups described it as a “workable compromise.” The European People’s Party said the revisions were “a step in the right direction,” pending further analysis.

The proposal must still be approved by both the European Parliament and the Council, with negotiations expected to move

quickly to allow publication before the end of the year.

Integrated artisanal model delivers again for Hermès Luxury

group Hermès has reported Tanners pouring money down the drain? Heidemann lecture highlights collagen potential

At the 38th IULTCS International Congress in Lyon, Dr Dietrich Tegtmeyer delivered the prestigious Heidemann Lecture, warning that tanners could be missing a major opportunity to increase both profit and sustainability by underutilising collagen.

He highlighted that while leather production focuses on cleaner methods and wastewater management, much of the collagen in hides ends up as waste. Dr Tegtmeyer urged the industry to adopt a zerowaste mindset, transforming by-products such as fleshings and shavings into valuable materials for animal feed, fertilisers, gelatine, and high-tech applications like 3D printing.

He stressed that tanneries should see

themselves as collagen manufacturers, not just leather producers, and explore the full potential of this versatile biomolecule.

You can read the full article about the Heidemann lecture in the upcoming issue of World Leather magazine.

Small fall in export value for French hides and skins

France’s export revenues from hides and skins in the first eight months of 2025 were €131.1 million, a fall of 1% compared to the same period last year.

The figure for bovine hides was €79 million, flat with January-August period in 2024. Calfskins contributed € 24.4 million to the total, but this material’s export performance was down by 13% year on year.

In contrast, as in earlier months in 2025, the figure for sheepskins and lambskins was up, rising by 18% to reach €10.4 million.

Exotic skins brought in € 15.6 million, flat with the figure for the previous year.

Hermès names new men’s creative director

UK designer Grace Wales Bonner is to become the new creative director for men’s ready-to-wear at luxury brand Hermès. Her appointment follows the company’s recent announcement that artistic director of men’s collections, Véronique Nichanian, is to step down early next year.

Grace Wales Bonner graduated from Central Saint Martin’s in London in 2014. She was named as the 2016 winner of the LVMH Prize, winning €300,000 in prize money and a yearlong mentorship at LVMH.

The following year, she worked on projects with renowned shoe designer Manolo Blahnik, who said of her: “I can sniff it out when someone has something new about them. I have a marvellous young person working with me now called Grace Wales Bonner. She is fantastic.”

Ms Wales Bonner went on to prepare joint collections with Adidas Originals and to develop her own brand.

Hermès said it had taken note of her success in creating “a contemporary and innovative approach to menswear over the last 10 years”. She will present her first collection for Hermès in January 2027.

At the time of the announcement, Grace Wales Bonner said she was grateful for the opportunity to “bring my vision to this magical house”.

A departure at Hermès

Artistic director of men’s collections at Hermès, Véronique Nichanian, is to step down from her role in January after presenting her final designs for the brand at the first Paris Fashion Week of next year. She began working for Hermès in 1988.

The company said in a statement that the success of its men’s ranges owed much to Véronique Nichanian.

It added: “For nearly forty years, her collections have had consistent success with clients all over the world.”

Fragrance deal will allow Kering to focus on its core business

Luxury group Kering is to raise new capital through a new agreement with beauty and fragrance company L’Oréal.

As soon as a current agreement with rival fragrance manufacturer Coty expires, L’Oréal will begin producing fragrance and beauty products for Kering’s biggest brand, Gucci. Its licence to make Gucci products will run for 50 years.

The agreement is likely to come into force in the first half of 2026. When it does, L’Oréal will also begin making fragrance and beauty products for two other Kering brands, Bottega Veneta and Balenciaga.

L’Oréal will pay Kering €4 billion to put the new agreement into effect and will also pay royalties to Kering for the use of the brand names.

Kering chief executive, Luca de Meo, said the new partnership would allow the group to focus on the “creative power” of its brands.

Next steps for ‘biocircular’ footwear brand

Following the launch of its debut shoe this summer, Swiss footwear brand Solk has expanded with new colours and the launch of a consumer-facing web shop.

Founders David Solk and Irmi Kreuzer have used their 30 years of footwear sector experience to design and create a “biocircular” shoe, where every element is “compost compatible”.

The shoes are produced in a companyowned factory in Vietnam, and at the end of life, can be returned to be composted in a company-owned composting facility in Germany.

“We actually started out trying to make the shoe without leather,” David Solk told World Leather. “We explored a range of non-leather alternatives and really pushed to make one of the newer bio-based materials work. But at the time, none of them could meet the performance demands of footwear without relying on plastic. That’s what eventually led us to take a closer look at leather – and to ask whether it could be produced in a way that aligned with our biocircularity goals.”

The team worked closely with a German tannery on a tanning process developed specifically for Solk products.

The first design, the Fade 101, is now available in an expanded palette and retails at €285. Alongside ember, black, ivory and sand, the collection now includes navy, stone and olive.

The Fade 201 is a new low-profile silhouette with a slimmer fit, available in ivory, sand, navy, black and dusty rose, claret and tan. The Fade 201 retails at €265.

TFL unveils Colour Trends SpringSummer 2027

TFL has released its Spring-Summer 2027 colour trends catalogue, covering leather for garments, footwear, accessories, and upholstery.

The trends are divided into two sections: “Wearing” for fashion items and “Living” for interior designs. In “Wearing”, bold contrasts and natural inspirations dominate. Negative reptile prints return in greens and lemon yellow, boat shoes feature sea blues and sky reflections, and suede adopts sandy neutrals with bright, fruit-inspired accents.

“Living” highlights interior colour choices, from vibrant camellia pinks for dynamic settings to taupe and earthy browns for a classic look.

The catalogue is now available and aims to guide design decisions in upcoming seasons.

Bridge of Weir marks 120 years with full-service US leather interiors

Leather manufacturers Bridge of Weir has launched a complete leather interior solution for US automotive customers, marking 20 years of collaboration with Piston Interiors.

The partnership began in 2005, with Piston Interiors cutting and trimming leather at its Mexico facility. It has since grown to a dedicated team in Pontiac, Michigan, and a showroom for automotive designers to explore the latest leather innovations.

The new service covers all stages of leather interior production, from design and material selection to cutting, sewing, finishing, testing, and delivery, enabling full interior products from single seats to complete interiors using premium Scottish leather.

The announcement coincides with Bridge of Weir’s 120th anniversary. Its leather has been used in US models from Ford and Lincoln to the Ford GT and Lucid Air, and remains the choice for brands including Aston Martin, Jaguar Land Rover, McLaren, and Polestar.

BeDimensional introduces boron nitride to leather

BeDimensional,

an Italian spin-off from the Istituto Italiano di Tecnologia, specialising

makes it natural

in two-dimensional materials, has introduced B-LEAF, an atom-thin hexagonal boron nitride (h-BN) crystal, for the leather industry.

The additive is reported to improve mechanical strength and thermal regulation in leather products.

The technology was demonstrated at Lineapelle 2025 in a jacket by Italian tannery Maryam, using leathers treated with chemical auxiliaries from Riverchimica integrated with B-LEAF. Laboratory tests indicate increased burst and thermosetting resistance and faster heat dispersion.

The product is available in liquid and powder forms for use in retanning and finishing, offering tanneries flexibility in adjusting leather properties.

Return to Fendi for Maria Grazia Chiuri

Luxury group LVMH has announced Maria Grazia Chiuri as the new chief creative officer of Fendi. Silvia Venturini Fendi will

leave her design role at the brand and become Fendi’s honorary president.

Silvia Ventuini Fendi first took a creative role at the brand in 1992. She is a granddaughter of the brand’s founders and daughter of one of the famous Five Fendi Sisters, the second generation that led the Rome-based company until the end of the twentieth century, when LVMH acquired a controlling stake.

Maria Grazia Chiuri said on taking up her new role that she was delighted to return. She said she had had the privilege of starting her career under the tutelage of the Five Sisters. She added: “Fendi has always been a producer of talent and a starting point for many creatives in the industry, thanks to the extraordinary ability of those five women to foster and nurture generations of vision and skill.”

Ms Chiuri joined Valentino in 1999 and ran its accessories collections until 2008, when she took on the wider role of creative director for the brand. Following this, in 2016, she

became artistic director of women’s haute couture, ready-to-wear and accessories collections at Dior.

Recycled

and refurbished IBCs cut emissions at Cromogenia

Spanish leather chemicals manufacturer Cromogenia Units has introduced intermediate bulk containers (IBCs) made with 30% recycled HDPE at its Barcelona and Tarragona plants.

Cutting CO2 emissions by 6.8 kg per unit, a successful pilot in 2025 will allow wider use, with 1,000 to 3,000 IBCs expected annually.

The company also used 8,836 refurbished IBCs in 2024, avoiding more than 1,176 tonnes of CO2. These actions form part of Cromogenia’s plan to reduce total emissions by 30% by 2030.

“Our move towards recycled and refurbished containers is a key step in advancing the circular economy,” said CEO Alex Cabestany.

Futurmoda to open its doors for 54th time

Spain’s national industry association for footwear component suppliers, AEC, said it expected around 4,500 visitors to attend the fifty-fourth edition of its Futurmoda exhibition, taking place in Elche on October 15 and 16.

It said more than 230 exhibitors would showcase leathers and other materials for footwear manufacturers to use in their autumn-winter 2026-2027 collections.

Tough year continues for LVMH

Luxury group LVMH has reported revenues of €58.1 billion for the first nine months of 2025, down by 4.4% compared to the same period last year.

The fall for its leathergoods and fashion business segment was steeper. This part of the group brought in revenues of € 27.6 billion, down by 7.7% year on year.

LVMH said the performance of the leathergoods part of the business had improved in the third quarter, “reflecting good resilience with local customers”.

The group said that in an uncertain economic and geopolitical environment, it remained confident and committed to a strategy focused on “continuously enhancing the desirability of its brands, and drawing on the authenticity and quality of its products”.

ASIA

China: Figures for bags and garments are down

Figures on the performance of the leather sector in China this year continue to show a downturn.

China’s exports of bags and luggage between January and July 2025 had a value of $18.4 billion, a fall of 11% compared to the same period last year. Imports into China of bags and luggage items had a value of $3 billion, a decrease of 12.4% year on year.

Exports of leather garments in the first eight

months of this year brought in $66.75 million, which is a drop of 8.2% year on year. Imports of leather garments into China were worth $61.2 million, down by 5.4%.

US tariffs expected to hit India’s leather exports

India’s leather and allied products industry is expected to see a 10-12 per cent revenue decline this financial year following the United States’ 50 per cent tariffs, business consultancy group Crisil Ratings reported.

The duties, including a 25 per cent reciprocal tariff and a 25 per cent penalty over India’s Russian oil purchases, are likely to reduce export volumes and strain exporters’ finances.

Exports account for around 70 per cent of the $6.4 billion industry, with the US representing 22 per cent. Crisil said order cancellations and production shutdowns have already affected smaller tanneries and USfocused units, with export revenue projected to fall 14-16 per cent to $3.9-4 billion this fiscal.

Domestic demand could provide partial relief due to lower GST, reduced interest rates, and a UK Free Trade Agreement, though benefits may take time. Operating margins are expected to shrink 150-200 basis points, with exporters facing a sharper decline, while leverage should remain stable.

Stella on course to increase capacity by 20 million pairs per year

Hong Kong-based footwear group Stella International has reported revenues of just over $1.1 billion (US) for the first nine months of this year.

Over this period, Stella’s factories produced 41.4 million pairs of shoes, boots and sandals.

The figures represent an increase of 1.6% in value and of 5.1% in volume year on year.

However, Stella also reported a decline in the average price per pair it was able to secure for its footwear, down by 3.1% to reach $27.70.

Stella is currently constructing new production facilities in Indonesia and in the Philippines. It said it had faced challenges in both locations but had recently made “solid progress” in resolving these. It expects production to begin at these new sites in the second half of 2026.

Group chairman, Lawrence Chen, said the group plans to scale up its production capacity by an additional 20 million pairs per year.

“We remain focused on acquiring and ramping up new customers, particularly in the luxury, high-end fashion and sports categories,” Mr Chen said.

Footwear figures show a sharp fall in leather shoe imports into China

Footwear manufacturers in China exported more than 5.1 billion pairs in the first seven months of 2025, bringing in revenues of $25.6 billion.

Exports of leather footwear accounted for 300 million pairs of the total volume and almost $4.4 billion of the total export value.

Overall, the export figures show volumes that were nearly flat with the same period last year, down by just 0.7%, but a fall in value of 7.3%.

Retailers and traders in China imported 100 million pairs of footwear in the same sevenmonth period, investing more than $3.1 billion. These figures are also down, by 12.4% in volume and 9.1% in value year on year.

Of the total footwear imports, leather shoes accounted for 29.7 million pairs and contributed more than $1.3 billion towards the total spend, falling more steeply than overall shoe imports.

Between January and July, China imported 21.1% fewer leather shoes than in the same period the year before and decreased its spend on leather footwear from other countries by 18.3%.

The source of these figures is the China Leather Industry Association.

Falls across the board for China’s hide, skins and leather imports

China’s tanners imported 828,000 tonnes of raw hides and skins in the first seven months of 2025, according to figures from the China Leather Industry Association. This material had a value of $670 million.

These figures mean imports of raw hides and skins into China were down by 5% in volume and by 16.6% in value compared to the same period in 2024.

Over the same months this year, China imported 352,000 tonnes of semi-finished leather, with tanners investing $520 million in this material. These figures also represent falls, of 2.8% in volume and 14.3% in value.

Imports of finished leather were down even more sharply. Chinese manufacturers imported 21,000 tonnes of finished leather between January and July 2025, with a value of $340 million. These figures mean declines of 17.2% in volume and of 19% in value, year on year.

PrimeAsia supports workers with summer camp initiative

Leather

manufacturer

PrimeAsia strengthened its focus on worker well being with its third annual summer camp for employees’ children at its China facility.

The programme ran from July 14 to August 15 and welcomed 44 children, making it the largest edition of the camp to date. Led by SD manager Kevin Liao and organised in partnership with the local town association, the initiative provided a safe and engaging environment while parents managed work commitments during the school holiday.

Professional teachers and volunteers guided children through a variety of activities including morning exercise, reading, handicrafts, painting, puzzles, and team games, ensuring a balanced mix of learning and recreation.

The summer camp forms part of PrimeAsia Leather’s commitment to Social Impact, one

of the four pillars of its Consciously Crafted sustainability strategy.

Stahl reopens coatings facility in India

Stahl has reopened its upgraded coatings facility in Ranipet, India, reinforcing its focus on sustainable growth and innovation.

The site, first opened in 2000 and closed in 2019, now brings together production, R&D, and testing for leather finishing, performance, and packaging coatings. CEO Maarten Heijbroek said the reopening aligns Stahl’s operations with future market demands and strengthens local support for customers in a key growth region.

Equipped with automated systems and a zero liquid waste treatment process, the facility employs around 140 staff. Managing director for India and Bangladesh, Mr Ranganath BV, described the reopening as “both a homecoming and a new beginning” for Stahl in India.

WWF Pakistan issues leather sector guidelines

WWF Pakistan has released the Guidelines for Transparency and Traceability of the Leather Value Chain in Pakistan, authored by Deborah Taylor, managing director of the Sustainable Leather Foundation.

The guidelines were produced under the European Union–funded International Labour & Environmental Standards Application in Pakistan’s SMEs (ILES) project, for which WWF Pakistan engaged the Sustainable Leather Foundation in 2024 to develop a practical framework for the leather sector.

The publication states that traceability underpins transparency and is expected to be important for compliance with emerging regulations, including the EU Deforestation Regulation (EUDR), the Corporate Sustainability Reporting Directive (CSRD), and the Corporate Sustainability Due Diligence Directive (CSDDD). It outlines systems and tools for tracking materials from livestock farms to finished leather, supporting regulatory compliance, sourcing practices, and environmental management.

The guidelines form part of an EU-backed effort to enhance sustainable growth and working conditions in Pakistan’s leather and textile industries through improved environmental management, resource efficiency, and competitiveness.

THE AMERICAS

Cattle slaughter down in Canada

Official figures from Agriculture and AgriFood Canada show that the country’s cattle slaughter in the first nine months of 2025 was just over 2.1 million head.

The figure for the corresponding period last year was well over 2.2 million.

This means the January-September total in 2025 is down by 5% year on year.

Almost 80% of Canada’s cattle slaughter is in western provinces, mostly in Manitoba, Saskatchewan and Alberta.

Ugg leads Deckers’ Q2 growth surge

Deckers Brands reported net sales of $1.4 billion ( € 1.3 billion) for the second quarter of fiscal 2026, up 9.1% year-on-year. The company highlighted double-digit growth from its Ugg and Hoka brands.

Ugg sales rose 10.1% to $759.6 million (€696 million), while Hoka increased 11.1% to $634.1 million ( € 582 million). Other brands declined 26.5% to $37.2 million (€34 million). International markets drove growth with net sales up 29.3% to $591.3 million ( € 542 million), offsetting a 1.7% drop in domestic sales.

Deckers reported a gross margin of 56.2%, operating income of $326.5 million ( € 299 million), and diluted earnings per share of $1.82. CEO Stefano Caroti said, "Ugg again delivered double-digit growth, reflecting strong performance and international momentum."

Finalists of RLSD ‘instinctively understand’ sustainable design

Four student designers from Italy, the UK, Israel and Vietnam are heading to Taiwan to compete in the final of the Real Leather, Stay Different (RLSD) International Student Design Competition 2025, which received a record 1,483 entries from more than 75 design schools worldwide.

“The fashion industry is witnessing a surge in youth-driven sustainable design innovation,” said judge Christopher Koerber, managing director of Hugo Boss Ticino.

“What we're seeing is a generation that instinctively understands the environmental stakes yet refuses to compromise on either creativity or responsibility."

From armour-inspired apparel to modular footwear systems designed for circular economy principles, this year's winners demonstrate sophisticated understanding of both craft and sustainability imperatives, he added.

Kerry Brozyna, president of the Leather & Hide Council of America, funders of the competition, said: "We launched Real Leather, Stay Different to counter the mounting threat of fast fashion and its environmentally catastrophic reliance on petroleum-based plastics masquerading as textiles. What we didn't expect was this level of engagement from a generation more than capable of working out what true sustainability means for the planet. They're not just designing products - they're designing solutions that prioritise sustainably sourced natural fibres, including leather."

Apparel winner Islam Nashef from Israel’s Bezalel Academy of Art and Design created ‘Shields’, exploring the tension between protection and vulnerability through armourevoking constructions. UK's Jamie Unlu O'Grady from De Montfort University developed ‘SubTraction’, a modular footwear system where components can be replaced, interchanged, upcycled or disposed of to biodegrade independently. Italy's Sara Morandini from Accademia Costume & Moda

presented ‘Ombrage’, a unisex collection inspired by natural forces. Vietnam's Lan Anh Nguy?n from Hoa Sen University captured the People's Choice award with ‘Horn to Hope’, symbolising resilience through the union of threatened rhinos and thriving orchids.

The RLSD international final will take place on October 28. The four international category winners will be joined by the RLSD Taiwan 2025 overall winner, Wu Jo I, who will compete on behalf of the host nation.

Ronaldo Ayala elected LHCA co-chair

Ronaldo Ayala, director of hide sustainability and procurement with Eagle Ottawa by Lear , has been elected co-chair of the Leather and Hide Council of America following board elections at the association’s annual meeting in Chicago on October 16 and 17.

Mr Ayala said he was thankful for the trust placed in him and noted the importance of the association at a difficult time for the sector. He succeeds outgoing co-chair Mike York of Tennessee Tanning Co (Rawlings) and will serve alongside co-chair Dave Seaver of JBS.

The board also elected Skip Horween of Horween Leather Company as the next treasurer. David McCullough of Cargill and Sarah Drayna of TFL Group will join the executive committee.

Further elections took place for the board of the Foundation of the Research Laboratory of the Tanners Council of the United States of America at the University of Cincinnati. Tim Ng of CK International will take over as chair. Paul Bell of Law Tanning, Drew Gullick of Hermann Oak, John Thompson of Tannin, and Adam Simon of ISA will join the board.

LHCA president Kerry Brozyna thanked outgoing officers and board members for their service and welcomed the new leadership team.

Brazil's shoe sector rallies but

leather products falter

Brazilian footwear exports reached 76.7 million pairs worth $736.4 million in the first nine months of the year, an increase of 7.1% in volume and stable revenue compared with the same period last year, according to the Brazilian Footwear Industries Association (Abicalçados).

In September, exports totalled 9.2 million pairs and $85.3 million, up 18% and 5%, respectively, versus the same month in 2024.

The president of Abicalçados, Haroldo Ferreira, said footwear exports for the month were supported by growth in shipments to Latin American destinations, especially in the synthetic-material footwear segment. “We would be posting better results without the impacts of the contraction in the US market. Leather footwear, produced to order, faces greater difficulty in finding alternative markets in the short term.”

US president Donald Trump imposed a 50% tariff on Brazilian goods. It was previously the biggest market for Brazilian shoes, but in September, Argentina bought the most. During the month, US purchases of Brazilian

shoes dropped by around a quarter.

In September, Brazilian imports totalled $49.7 million and 3.4 million pairs, a 5% increase in volume. However, those coming from China increased 70%. “With the 30% tariff applied to Chinese products in the US, their manufacturers have been intensifying their exports to other countries, including Brazil,” added Ferreira.

EUDR rears its head at Chicago event

The

Leather and Hide Council of America held its annual general meeting for 2025 in Chicago on October 16 and 17.

Speakers included the secretary general of European industry body COTANCE, Gustavo González-Quijano.

He took the opportunity to give colleagues in the US an update on the European Union Deforestation Regulation, saying it was a topic that had haunted the industry in the US for a long time.

Mr González-Quijano said there was still hope among leather industry representatives around the world that the authorities in the Eurropean Union will “acknowledge that leather is not a driver of deforestation”.

There has been no formal announcement from the European Commission since news broke in mid-September of a proposed new delay to implementing EUDR.

As things stand, the regulation would begin to come into effect at the end of 2025.

European Commissioner for the environment, Jessika Roswall, confirmed on September 23 that concerns remained about the technology companies will have to use to present proof of EUDR-compliance. She said a new proposal to delay EUDR by 12 months was in the process of earning the approval of the various institutions of the European Union.

Dr Luis Zugno retires after 23 years at Buckman

Aftermore than two decades with speciality chemicals company Buckman, respected leather technologist Dr Luis Zugno has announced his retirement, describing it as “a new chapter” in his lifelong connection with leather.

In a message to colleagues and industry partners, Dr Zugno reflected on his 23 years with Buckman as a time defined by collaboration and innovation. “What I did was never merely work,” he wrote. “Work was the means through which I pursued my goals and realised my aspirations.”

Over the course of his career, he coauthored a book on leather science, presented at numerous international conferences, and helped develop new products and applications for tanneries around the world. He also served as president and now executive secretary of the International Union of Leather Technologists and Chemists Societies (IULTCS), and as chair of Leather Naturally.

Dr Zugno expressed gratitude to colleagues, clients, and partners for their trust and collaboration, saying their shared efforts

had strengthened leathermaking “as both a craft and a science”.

Although retiring from Buckman, Dr Zugno said his story in leather will continue, with plans to keep sharing knowledge and exploring innovation within the industry he “deeply cares about”.

USMEF calls for easier access to the UK market for US beef

Arecent

trade mission from the US Meat

Export Federation to the UK concluded with the organisation’s incoming chair, Jay Theiler, calling for easier access for US beef.

Mr Theiler accompanied the governor of Idaho, Brad Little, on the visit, during which they met UK farmers, importers and trade officials.

The US and the UK reached an agreement on tariffs and trade in June. As part of that deal, UK opened a duty-free tariff rate quota for US beef with a volume of around 8,500 tonnes for the remainder of 2025.

After the trade visit, Mr Theiler said he thought there was strong potential for US exporters to increase this, but but he said US products faced “lingering non-tariff barriers” that should be addressed. These barriers include what he called “excessive phytosanitary and labelling regulations”.

Detroit leathergoods firm receives hides from Pangea

Automotive leather manufacturer Pangea has donated 600 finished hides to a Detroit-based leathergoods producer.

Pingree Detroit specialises in using leather reclaimed from the local automotive industry to use in handmade shoes, wallets, card holders, tote bags, coasters, sneakers and other items.

A worker-owned cooperative, Pingree Detroit launched ten years ago with the aim of providing employment for armed forces veterans who were struggling to find work elsewhere.

It said Pangea’s donation was the largest it had received this year so far and would provide enough material for its team to produce around 3,500 handmade products.

Pangea has called waste reduction a critical component of its environmental strategy. In 2024, its manufacturing sites diverted 1,670 tonnes of leather shavings from landfill to be repurposed into new products by industries in Mexico, Asia and Italy.

Reassurances follow US ‘extra 100%’ tariffs on China

The markets steadied on October 13 after their worst fall since April. The falls came after the US said it would impose an extra 100% tariff on imports from China from November 1.

The US took this step after China announced restrictions on exports of rareearth minerals.

On October 13, though, US Treasury Secretary, Scott Bessent, said talks between China and the US would continue and that a proposed meeting between the two countries’

presidents would go ahead in South Korea in the coming weeks.

This, and a social media message from US president, Donald Trump, saying that “it would all be fine”, were enough to calm the markets again.

Argentina: cattle slaughter reaches 10 million head

Figures from Argentina show cattle slaughter of almost 10.2 million head in the first nine months of 2025.

This is a fall of 0.6% compared to the same period in 2024.

Over the course of this decade so far, September has consistently been the month in which Argentina’s cattle slaughter has gone about the 10 million head threshold, although the figure was lower in 2021.

COTANCE joins calls for swift ratification of EU-Mercosur agreement

Leather industry body COTANCE was among the representatives of a wide range of European business sectors to sign a jointdeclaration calling for the ratification of a trade agreement between the European Union and South American economic bloc Mercosur.

These two groups reached an agreement, at a political level, for a trade deal in December 2024, following years of negotiation. This agreement has not yet been ratified by member states on both sides of the Atlantic.

The new joint-declaration, dated October 13, called for ratification to take place quickly. It said: “The EU-Mercosur is a modern agreement, driven by modern principles. It will deliver increased market access and improved access to resources, while preserving key sectors in European domestic markets, diversifying secure supply chains, and fostering investments for both sides.”

It said the agreement would also help deepen cooperation on sustainable development, in areas such as fighting climate change, preserving biodiversity, and advancing labour and social rights.

COTANCE said that for Europe’s leather industry, the agreement will offer “a significant opportunity to improve the access to necessary resources, strengthen cooperation, and build more resilient, sustainable supply and value chains”.

AFRICA

Zimbabwe footwear sector adopts new design technology

Zimbabwe’s leather industry is taking steps to modernise footwear design through new computer-aided design (CAD) training for lead designers at the Leather Institute of Zimbabwe (LIZ).

The ten-day programme aims to improve precision, speed up product development and strengthen collaboration between design teams and manufacturers.

LIZ executive chairman Cornelious Sunduza

said the institute requires about US$3,000 to install the latest 3D software such as Shoemaster, which supports rapid prototyping and virtual modelling. The initiative builds on the recent launch of the EU-funded Zimbabwe Leather Satellite Design Studio by Comesa’s Africa Leather and Leather Products Institute (ALLPI), which equipped LIZ with advanced design and prototyping tools through a €150,000 RECAMP grant.

Zimbabwe Leather Development Council chairman Clement Shoko said the training supports the Leather Sector Strategy (2021–2030) and Vision 2030 goals of industrial growth and export competitiveness. He added that digital design capacity will help local clusters access new markets and strengthen the country’s position in the regional leather value chain.

OCEANIA

New Zealand revises methane targets

The government of New Zealand has revised down its targets for biogenic methane (for instance, cattle-derived) emissions by 2050 to 14% to 24% below 2017 levels.

It previously aimed for a 24% 47% reduction, including 10% reduction below 2017 biogenic methane emissions by 2030. It said it had considered advice from the Climate Change Commission, alongside findings from an independent review of methane science and targets.

The country has adopted a split gas approach for its domestic climate change goals. This acknowledges that biogenic methane – which is a short-lived greenhouse gas – has different warming impacts than long-lived greenhouse gases, like carbon dioxide.

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