Ostrich Leather Heads out of the Sand
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After reaching a peak of US$42 per square foot for Grade #1 in October 1993 before the market was deregulated, the price of ostrich leather entered a decline which resulted in prices bottoming out some ten years later. This was due to oversupply triggered by overproduction of birds.
Ostrich leather, along with other exotic leathers such as crocodile, lizard and python, is still regarded as a luxury item and, with luxury goods world wide remaining bouyant in the face of a weakening global economy, especially in the United States, consumer demand for ostrich leather has made a comeback: forecast to continue in both the medium to longer term.
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In light of this forecast, problems could arise in manufacturers not obtaining sufficient supplies to fulfill latent demand. However, according to the Review of the Global Ostrich Industry - March 2008 written by Saag Jonker, President of Ostrich Products South Africa (Pty) Ltd. (OPSA), the market for ostrich leather has already entered a new bull phase.
Footwear and leather goods manufacturers interested in making luxury, high margin, finished products from ostrich leather should read this authoritative report in order to plan ahead in the face of increasing ostrich raw material prices. |
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If you wish to contribute to the APLF News, with your experiences in the industry, your observations, or general thoughts on the direction the industry is going, we would like to hear from you. Email: sales@aplf.com | |
