Shrinking cowhide prices add to US ranchers' blues

Reuters reports:

U.S. cattle ranchers, already hit hard as the global recession eats into beef consumption, have the added hardship of shrinking prices for cowhides, used to make leather car seats, coats, shoes and upholstery, industry sources said on Tuesday. Cowhides are an important revenue stream for the beef industry. But sales have slipped as many global carmakers have cut production as sales of new cars tumbled due to consumers putting off big-ticket buys and luxury purchases. "The demand for cars is down and the demand for leather seats is down," said John Whittenborn, president of Leather Industries of America. Cowhide prices have shrunk nearly by half in the last six months, according to economists. "In most markets for higher quality hides, we are running about $40 per hide. In August, they were about $70 per hide," said Jim Robb, economist with the Livestock Marketing Information Center. "So the dismal world economy impacted the cattle industry directly due to the hides and other items," said Robb. Most cow hides are exported but return to the United States in the form of finished leather that is then used for the car seats, coats, and upholstery...