What happened this week: Generally a lot and also nothing really new at the same time. FaM has not,  surprisingly and fortunately yet arrived Germany. The cull slaughter has started with more cattle than what we expected but much less than programmed. South German abattoir prices shot up by up to 15 % what is not so much considering that the basis is four month ago but crazy when one looks at the absolute prices. Business was again active for us this week. Bulls were desperately sought and taken by automotive tanners while we filled the gaps on cows  wherever we could  created by the export stop of Dutch hides. Anything what was calf, kip or similar was also grabbed by tanners from all countries - when it was offered. Prices where - as expected - on asking levels and rose after every successful sale. By the end of the week, however no quotes were made anymore, because abattoirs had (South) or have (North) to be fixed first before the

processors dare to make calculations and prices. The market was made again only by the automotive tanners. Lacking programmed supplies from various origins and obviously good leather orders and so they push with their demand the market and don’t let him take a breath. Side leather tanners have now indicated (we have to wait and see what they really do) that they are going to pull out of the fight for males, but not yet declared what they are going to do instead. The whole situation is even more impressive considering the fact that the total kill of males in Germany, despite of the epidemics  was even better than in a normal year and only cows where the hides which came in substantial less. So, what would just have happened in a normal year? Everybody knows that we never believed in these ultimate price rises, but we were wrong and we are back where we were 1997 before the Asian crisis stopped the endless demand. Now there hasn’t been any crisis yet and the

leather industry seems not to accept the fact that if they live in times of epidemics or not there is a physically limited supply base. All the programs made by shoe, fashion and auto companies ignore the fact that beef production doesn’t care about their growth rate plans. So the only choice at the beginning is cannibalism within their own industries until fashion or other (bankrupcies, economical slowdowns) events may reduce demand finally. It is at least surprising that car and consumer companies do not seem to expect any effect on their business from the general signs of economical  problems worldwide. The kill: Normal with the cull kill numbers on top. What do we expect? Higher asking levels for bulls next week with a fair chance to be accepted. We wonder however how cows will hold with almost just part of Europe as a market left. But also this does not seem to bother anyone anymore, except us. In addition we repeat our worries about the financial situation.