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Farmers may not follow fashion trends too closely, but what happens on the catwalk and on the garage forecourt is closely linked to one of their farm outputs: hides and skins.
Hide prices have fallen by around one third in the last 12 months.
This time last year the hide trade was buoyant and over the first four months of 2017 they rose by €10.
However, since then, there has been downward pressure on prices and the year closed with hides down €20 on their 2017 peak.
This leaves steer and heifer hide prices in the range of €40 to €44 each, depending on size and condition, with cow hides valued at €25 to €28.
Supply and demand
As always, a combination of circumstances contrived to change the market.
Growing cattle numbers in North and South America drove supply up in the second half of the year.
In Italy, where much of Europe’s leather-producing industry is concentrated, drought in the second half of the year made EU hides less attractive.
The demand side of the business has also been weakening.
The drop in oil values from the record highs of a few years ago has meant that the production of synthetic fibres has been much less expensive.
This is particularly relevant for fashion lines in casual shoes. Leather shoes are increasingly being worn for formal occasions only, as opposed to everyday use.
The trend towards synthetic informal shoes reduces the demand for leather and hides.
Luxury cars
Another major user of hides has been the luxury car industry, where seats tend to be made of leather.
However, cheaper oil prices have encouraged the development of the product known as faux leather for car seating.
In plain English, faux leather is a type of plastic. In the past, plastic seats were used for entry level cars in a range, with higher-spec cars including fabric seating.
The interior of luxury cars is a major use for leather, produced from hides of larger cattle.
Skins from the sheep sector have been a seriously weak trade for a prolonged period.
Currently, the value of ewe skins is negligible, while lamb or hogget skins hover around €1 each and there is no guarantee that that price will be sustained.
As with all products, trends and fashions in leather change.
Oil prices
Oil prices have been creeping up, with crude now priced around $65 per barrel.
This may be a long way off the $107 per barrel it was making in May 2014, but it is more than twice the value it was this time two years ago when it dipped below $30 per barrel.
That suggests that the non-leather oil-based replacement products will become more expensive.
I note that The Guardian reported this week that cowboy boots are making somewhat of a fashion comeback.
Given the quantity of leather used for those boots, this is one fashion trend that beef-producing farmers would welcome.
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