The hide industry, it’s both business and personal
So, what is the “hide industry?” As a writer just now diving into the world of leather and its many applications, I asked myself that question quite a few times. Tired of just thinking about it, I finally decided to ask an expert. And what I found was a universe of people, processes and places – all of it tied to the daily, global harvest of cattle – that gives large corporations as well as artisans the material they need to create their wares, whether it’s mass-market shoes and auto interiors, or bespoke boots and belts.
What I also found is that, at least traditionally, part of the hide industry is both business and personal. It relies on people who have dedicated their lives to the market, who have human connections on multiple continents, and who can produce information that’s trustworthy. One such person is Ken Maxfield, author of the influential The Maxfield Report.
Before writing the report fulltime – something he’s done independently since 2008 – he sold hides for IBP and then for Arkansas-based protein giant Tyson Foods from 1991 until 2002. In the fall of 2002, Maxfield was recruited by The Jacobsen Publishing Company to be the managing editor of their hide report, where he doubled the report’s membership in six years. Maxfield and The Jacobsen parted company in the fall of 2008 and The Maxfield Report was born, as Maxfield leveraged his contacts and institutional knowledge to carve out a nice career as an entrepreneurial journalist.
Based out of his home, he his work day follows the European model, in which he gets work done while also living his life. He checks email before going to the gym. Then, he exchanges information with his European colleagues, who are at the end of their day. Before his American sources start to interact with him, he has time to mow the lawn, run an errand, do an administrative task, or have lunch. In the afternoon, the American sources start to get in touch. After that, he is again free to pursue his main hobby, serving as a referee for high school and college sports. In the evening, his Asian sources are starting their day on the other side of the world, and they want to know what’s going on in the United States and Europe. The day wraps up around 11 p.m. In the meantime, he has everything he needs for his report.
Having been in the meat packing business since the late ‘80s and in the hide business since the early ‘90s, he’s seen the way in which the industry has changed. Dating back to the ‘60s through the early ‘80s, the majority of all cattle hides produced stayed here in the States. However, due to labor costs and environmental restrictions, hides started heading east, first to Japan, then to South Korea and now to China and Vietnam. And in yesteryear, before modern technology, he spent a lot of time on the phone. The long-distance bill was one of his biggest expenses. Now, with Zoom, Teams, text messaging and other communications apps, long-distance fees are not an issue.
A big part of producing trusted market content is having not only an encyclopedic understanding of what the market is, but an understanding of hides and how they are produced. Hides are processed in one of two ways – shortly after the harvest they can be salted or treated with chromium, otherwise known as wet blue hides. They are then either put on pallets or in bags and shipped around the world to become leather. Those bound for Europe and the famed tanneries of Italy leave from the East Coast, while those bound for Asia head out from the ports in Vancouver, Oakland or Long Beach. The biggest consumer of hides is, of course, China, followed by Italy, Vietnam – the second largest footwear exporter in the world – Thailand and Mexico.
Domestically, we usually will see as many as 625,000 hides harvested each week, while this year due to tight supplies of cattle and market conditions we are only averaging 595,000 hides per week. The country that harvests the most hides might come as a surprise. It’s India – home to the world’s largest inventory of cattle – followed by China, Brazil and the United States which, predictably, is often used as the price index for hides globally.
Looking back on his career, Maxfield can point to plenty of fun facts. Nike, the pioneer in sports shoes, sold Air Jordan sneakers for big bucks, particularly when Michael Jordan was winning all his NBA titles with the Chicago Bulls in the ‘90s. But overseas, where the shoes were made, the cost per pair was around $7. And as he was, and is, involved in an international enterprise, Maxfield has been to around a dozen foreign countries. Among the outstanding memories are those of Hong Kong – flying into the old Kai Tak airport on the “heart attack approach” through the city’s skyscrapers. Maxfield quips that the jets were so close to what was going on in Hong Kong that passengers could look out the window and see who was having what for dinner at the local restaurants. What wasn’t a joke was the extraordinary wealth he witnessed in Hong Kong, which remains one of the richest cities in the world.
In the old days, when he was selling hides, he had to travel if he wanted to make money. And he didn’t have a choice of where he went and how long he had to stay. But these days, with technology, he doesn’t have to travel as much. And when and if he does, he can pick and choose where he goes based on what’s most advantageous for him and his business.
So, who subscribes to The Maxfield Report? Big companies that buy a lot of leather, like automakers, equestrian and fashion brands and of course meatpackers. They take his numbers and plug them into their spreadsheets. And there is plenty of content for the subscribers to consider. The U.S. Hide Report and corresponding Price Guide are available daily, while The World Report and corresponding Price Guide are published every Wednesday.
Still to this day, after more than two decades of writing hide reports, Maxfield does business on his word and a handshake. His sources across the world are real people, not computer models. When and if he needs extra information on something, he can pick up the phone and call Australia. Likewise, his sources can email him if they need help figuring something out. It’s all about sharing, not hoarding, knowledge. For people like Maxfield, contacts are everything, and that’s why part of the hide industry is both business and personal.
Compliments of Illume magazine.