Fallen stock scheme charges to rise as price of hides crashes

Farmers who use the fallen stock scheme to dispose of dead animals have been warned there is likely to be an increase in charges as a result of a fall in demand for some products.

The National Fallen Stock Company (NFSCO), which operates the service, has warned that a “significant and continued fall in hide values due to a drop off in demand for leather from the footwear and the automotive industries will have a knock-on effect on fallen stock collection charges this autumn and winter.”

NFSCO said the hide market has collapsed over recent years with most collectors now receiving less that £10 a hide today, whereas in 2014 fallen stock hides were worth more than £30.

Ian Potter of NFSCO said: “This devaluation may force collectors to increase service costs for bovine collections and disposals, potentially before the end of 2018.

“The dramatic fall has resulted in most collectors questioning the commercial value and effort in continuing to remove, trim, salt, pallet and load hides.

“Several collectors have recently thrown in the towel on hides entirely and laid off their skinning teams, while others soldier on against the odds because they do not wish to lose the valuable and irreplaceable skills that are now at risk.

“These collectors hope the market will do a U-turn, however all the signs are the demand for leather is fragile, with synthetic substitutesgainingpopularity.”

He added that the consequences of Brexit will also affect the trade, with the uncertainty of possible tariffs adding to the negative sentiment and culminating in a generally pessimistic outlook.