Argentina-Hide market collapse hits beef prices.

BEEF INDUSTRY CRISIS FALL IN HIDE PRICES.

The downturn in orders for finished leather in Argentina, has sent the prices of hides tumbling at the meat plants of country. The price per hide has gone from US$35-40 to US$10-12 per hide.

This money was traditionally relied on by the beef plants, to cover the costs of production and transport, leaving change of US$10-12 per head. The reality today is that the beef plants, have to pay an addition US$15 to produce their beef.

The embattled United States is not buying leather for upholstery in the car industry.

Argentina is a leading global supplier of finished leather, as no hides are allowed to leave the country raw, they must be processed into leather within the country.

There have been 1,200 tannery workers laid off in the last two weeks, more lay offs are expected.

While China still remains the main market for leather, the United States have always preferred Argentine leather for their automobile industry, making them the second largest market

The leather industry is worth well in excess of US$1.2 billion a year, to Argentine exports.