WHILE Australia exported almost 40 per cent more cattle hides last year, the value of hide exports contracted considerably.
The fallout from the global financial crisis, coupled with the rising Australian dollar, again heavily affected exports.
China, Thailand, Hong Kong and Italy were the biggest importers of Australian cattle hides - lifting export levels by 37 per cent. China was by far the largest market, accounting for more than 75 per cent of exported hides.
The price paid for hides fell dramatically last resulting in a 38 per cent fall in values to $180 million.
According to Meat and Livestock Australia data, green hides ended last year much better than they started, with young cattle and ox hides making $16.83 for an animal that weighed 141-180kg carcass weight or $26.42 for an animal that weighed 221-280kg cwt.
Both these prices - for Victorian and South Australian markets - were considerably better than the same time in 2008, when they made $4/hide and $11.61/hide respectively.
"Hides in 2009 mirrored the economic situation," National Livestock Reporting Service's operations manager Matthew Groth said.
"And we expect that to continue in 2010. We (then) expect to see a steady recovery."
He predicted a slow recovery this year as the financial crisis and lingering currency volatility continue to affect exports.
"We won't get a handle on prices until February, as our key markets in the northern hemisphere continue to be affected by the holiday period and China will have their New Year celebrations at the end of January (which sees a lot of manufacturing shut down)," Mr Groth said.
Slowdowns in the US automotive industry and the quality apparel and fashion market in Europe caused demand and prices to plummet, he said.
According to MLA data, hide values crashed to a low around March last year, leaving many traders and processors with large stockpiles, before recovering slightly in the second half of the year.
Mr Groth said Victoria produced better-quality hides, with tick-free, predominantly British-bred cattle produced in a "softer" environment without the harsh temperatures, and therefore obtained a discernible price premium.
Hides fall under the category of "co-products" which is anything that is not meat.
Co-products account for about 11 per cent of the value of a carcass, with skins and hides making up 6 per cent, offal 4 per cent and other rendered products making up the remaining 1 per cent of the value, according to MLA.
