Updated Nov 5, 2022 19:48

Market for Cattle Hide And Skin in Russia

Market Overview
In , the Russian cattle hide and skin market increased by % to $ for the first time since 2018, thus ending a two-year declining trend. Over the period under review, consumption recorded a perceptible reduction. Over the period under review, the market reached the peak level at $ in 2008; however, from 2009 to , consumption remained at a lower figure.

In value terms, cattle hide and skin production surged to $ in estimated in export price. In general, production continues to indicate a perceptible downturn. The most prominent rate of growth was recorded in 2018 when the production volume increased by %. Over the period under review, production hit record highs at $ in 2008; however, from 2009 to , production stood at a somewhat lower figure.

The average yield of raw hides and skins of cattle in Russia declined slightly to kg per head in , stabilizing at . The yield figure increased at an average annual rate of +% over the period from 2007 to ; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2018 when the yield increased by %. Over the period under review, the average cattle hide and skin yield hit record highs at kg per head in , and then dropped slightly in the following year.

In , number of animals slaughtered for cattle hide and skin production in Russia was estimated at heads, standing approx. at the year before. Overall, the number of producing animals, however, recorded a slight reduction. The pace of growth was the most pronounced in 2008 when the number of producing animals increased by % against the previous year. As a result, the number of producing animals reached the peak level of heads. From 2009 to , the growth of this number failed to regain momentum.


Consumption
In , consumption of raw hides and skins of cattle decreased by -% to tons, falling for the second year in a row after three years of growth. Over the period under review, consumption showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 when the consumption volume increased by %. Cattle hide and skin consumption peaked at tons in 2008; however, from 2009 to , consumption failed to regain momentum.

The revenue of the cattle hide and skin market in Russia reduced to $ in , which is down 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). Overall, consumption showed a noticeable shrinkage. Over the period under review, the market reached the peak level at $ in 2008; however, from 2009 to , consumption remained at a lower figure.


Market Forecast
Depressed by shrinking demand for cattle hide and skin in Russia, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract 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 Russia 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
Russia remains a net importer of cattle hide and skin; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $.