Updated Nov 5, 2022 19:28

Market for Cattle Hide And Skin in Australia

Market Overview
The Australian cattle hide and skin market skyrocketed to $ in , jumping by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption enjoyed a temperate expansion. As a result, consumption reached the peak level of $. From to , the growth of the market failed to regain momentum.

In value terms, cattle hide and skin production surged to $ in estimated in export price. Overall, production showed a perceptible reduction. The growth pace was the most rapid in 2010 when the production volume increased by %. Over the period under review, production hit record highs at $ in 2014; however, from 2015 to , production failed to regain momentum.

The average yield of raw hides and skins of cattle in Australia shrank modestly to kg per head in , leveling off at the previous year's figure. In general, the yield, however, recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2017 when the yield increased by %. The cattle hide and skin yield peaked at kg per head in 2018; however, from 2019 to , the yield remained at a lower figure.

The number of animals slaughtered for cattle hide and skin production in Australia stood at heads in , almost unchanged from figures. Over the period under review, the number of producing animals, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of % against the previous year. The number of animals slaughtered for cattle hide and skin production peaked at heads in 2015; however, from 2016 to , producing animals failed to regain momentum.


Consumption
In , approx. tons of raw hides and skins of cattle were consumed in Australia; standing approx. at the previous year's figure. Over the period under review, consumption recorded notable growth. Over the period under review, consumption attained the maximum volume in and is likely to see steady growth in the near future.

The value of the cattle hide and skin market in Australia contracted slightly to $ in , approximately reflecting the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption continues to indicate a perceptible increase. As a result, consumption reached the peak level of $. From to , the growth of the market remained at a lower figure.


Market Forecast
Driven by increasing demand for cattle hide and skin in Australia, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of cattle hide and skin in Australia were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for cattle hide and skin. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Australia remains a net exporter of cattle hide and skin; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.