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- Nov 20, 2018
https://qz.com/1308051/the-populari...-beef-industry-with-a-glut-of-unwanted-hides/
Shoes and hamburgers have sort of a symbiotic relationship.
The leather industry buys up many of the hides left over as a byproduct from the process that turns cattle into the various cuts of beef that wind up in restaurants and grocery stores. That leather is used for all sorts of items, but the footwear industry is its biggest buyer, according to Bloomberg, accounting for 55% of demand. It’s a good relationship, ensuring that little goes to waste.
It’s getting thrown out of balance, though, as the world’s people—and Americans in particular—eat more US beef but are losing their desire for leather shoes. The consequence, Bloomberg reports, is a surplus of steer hides and falling prices as supply grows out of scale with demand.
The demand for leather hasn’t quite rebounded since droughts in the US around 2014 hit the industry. The droughts shrank herds, yielding fewer hides and causing prices to spike. A number of manufacturers turned to other materials, but even after prices leveled out, they haven’t gone back.
In the last year they’ve started sharply falling again. Bloomberg points to more ethically conscious shoppers choosing leather alternatives as a contributing factor. Fake leather has advanced enough that even luxury designers now use it, and many shoppers want to show off their socially conscious lifestyles with what they buy.
Shoes and hamburgers have sort of a symbiotic relationship.
The leather industry buys up many of the hides left over as a byproduct from the process that turns cattle into the various cuts of beef that wind up in restaurants and grocery stores. That leather is used for all sorts of items, but the footwear industry is its biggest buyer, according to Bloomberg, accounting for 55% of demand. It’s a good relationship, ensuring that little goes to waste.
It’s getting thrown out of balance, though, as the world’s people—and Americans in particular—eat more US beef but are losing their desire for leather shoes. The consequence, Bloomberg reports, is a surplus of steer hides and falling prices as supply grows out of scale with demand.
The demand for leather hasn’t quite rebounded since droughts in the US around 2014 hit the industry. The droughts shrank herds, yielding fewer hides and causing prices to spike. A number of manufacturers turned to other materials, but even after prices leveled out, they haven’t gone back.
In the last year they’ve started sharply falling again. Bloomberg points to more ethically conscious shoppers choosing leather alternatives as a contributing factor. Fake leather has advanced enough that even luxury designers now use it, and many shoppers want to show off their socially conscious lifestyles with what they buy.