Value of hide exports falls
18/03/2009
Brazilian tanning industry body CICB has issued figures showing a 59% fall in the value of hide exports in the first two months of this year.
Hide exports in January and February brought in a combined total of $148.3 million.
CICB president, Luiz Bittencourt, said on announcing the figures: "This is a reflection of the international crisis, which started in the US economy and began to affect the other major economies in the world in the fourth quarter of 2008."
He said a fall in the demand for consumer products had affected the whole of the leather value chain and called on the federal government to support the industry's efforts to keep tanners in business, to preserve jobs and cash-flow. He added that the leather sector greatly appreciated the support it has received so far from ApexBrasil, the country's export promotions agency.
On a further positive note, Mr Bittencourt pointed out that Brazilian tanneries were adding value to a greater percentage of exported hides compared to previous years. Of the hides Brazil exported in January and February, 73.6% of the value and 57.3% in volume terms came from crust or finished hides.
In the month of February alone, China and Hong Kong imported hides worth $49.25 million, while product worth $43.8 million went to Italy. The value of hides destined for the US was just over $10 million, with the industry bringing in $6 million from Mexico.
There was important growth in the value of hides going from Brazil to India, with the total amount reaching $2.3 million (growth of 210% compared to February last year).
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