Economics of Segmenting Cattle Hides

John W. Thompson and Frederick J. Poats

No 320551, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Excerpts from the report: This research report evaluates the economic feasibility of trimming or segmenting hides (to be used in the manufacture of shoe uppers) into bends or crops in order to improve the competitive position of leather. This study is part of a broad program of research being conducted by the Department of Agriculture to help farmers market their products. Cattle producers have considerable interest in the future of leather; for if the value of hides decreases, returns to farmers for the most valuable byproduct of livestock slaughter also decrease. Presently, meat packers receive about $365 million annually for the hides and skins from livestock slaughter. Thus, as the markets for leather deteriorate, packers’ loss of revenue from hides is reflected in lower farm prices for livestock or higher prices for meat. Analysis of new trimming practices indicates that the removal of bellies, heads, and shoulders from, hides prior to tanning is economically advantageous to all segments of the leather industry. This was determined by the Department of Agriculture, in cooperation with the hide and leather industry, in evaluating the economics of changing hide-trimming practices in order to improve the quality and the competitive position of leather.

Keywords: Livestock Production/Industries; Marketing; Production Economics; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 26
Date: 1965-02
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:320551

DOI: 10.22004/ag.econ.320551

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