Best hide prices for 36 years

Press, Volume CXII, Issue 33066, 6 November 1972, Page 2

Best hide prices for 36 years

(New Zealand Press Association) AUCKLAND, November 5.

The prices of hides rose to their highest for at least 36 years at the Auckland auction last week, spurred by the enthusiasm of Japanese buyers.

“The Japanese are dominating the buying market,” a trade source said. “They are throwing money away like water.”

Hides are New Zealand’s fourth-largest earner of overseas funds.

One reason for the intense Japanese interest is believed to be the fear of an imminent revaluation of the yen. Another is that the oncehumble leather now has an important place in fashion. The trend to higher prices —also supported by East European buyers—was first noticed about four weeks ago, and corresponded with the steep rise in wool prices. At the auction held by DalaNew Zealand, Ltd, in and last week, prices rose dramatically. Heavy ox hides rose 4.5 c per kilo, and light ox hides

were 3.2 c dearer. Medium cow hides rose 2.8 c per kilo, light cow hides 4.6 c and 8.3 c, bulls 2.8 c, and yearlings 6.1 c. Average prices were: Ox, 90.1 c per kilo to 94.7 c; cow, 85.4 c to 117.6 c; bull, to 76.9 c; yearling, 105 c to 110 c. “Prices now are the highest they have been for at least 36 years,” said Mr M. Forrester, the manager of Dalgety’s hide-and-skin division. “The last peak was during the Korean War boom, and they have gone past that.” In the public mind, hides are the forgotten giant of New Zealand’s exports. Hides and skin exports totalled $50,564,000 last year—fourthhighest after meat, wool and butter. Mr Forrester said the hide market was likely to remain firm for some time. The next auction —the Dalgety market in Auckland is the only one in the country—will be held next week.