Reasons for Shortage of OSTRICH Skins and Price Increases Effective April 25, 2012:

…. Since January of 2012 worldwide availability of ostrich skins in general has decreased over 40%

…. Total” industry” shrinkage of the core producers is estimated at 40 to 50% less than a year ago

….co-op farmers have ceased farming ostrich due in part to the lack of export of one of the major by-products…”meat”

…. Therefore, every major provider has had decreased access to skins in excess of 50 to 60% of last years’ availability

…. Current local stock for on hand usage has decreased by over 75% Results: Unavailability of skins is driving the market with general laws of supply and demand

. ……in three short months, demand which remained the same for us, has put excessive pressure on the supply shortage, resulting in a 35% price increase in the material alone

. ….. Expectations are that the 50% mark for price increases will be reached by early summer. ….

Price increases have already been passed to manufacturers of ostrich goods, effective late March 2012, but it is now past the dollar issue. It now lies strictly in supply. Orders are filled by date of order as skins are available. While we hope to maintain a flow of material to our customers, Lucchese is also affected by the 50 to 60% less than needed available skins. This also means that with skins shortages come shortages on deliveries and the reciprocal price increase.