Mato Grosso: tanneries working at 50%
07/05/2009
The downturn in the global economy and the turbulent situation the Brazilian beef industry is going through have led to a reduction in the activity of the tanning sector in the state of Mato Grosso.
The state has 13 working tanneries, with a combined capacity to process almost 14,000 hides per day, but, according to local sources, they are working at around 50% of capacity at the moment.
Evando Durli, vice-president of the state's tanning industry trade organisation, Sincurt, has told local media that one of the knock-on effects has been a fall in the price of hides of around 75% compared to the end of last year. Top-quality hides from local packers reached a peak price of just over US$40 in November, or around $1.40 per kilo. Today's prices are around $10 per hide, or only 30 cents per kilo.
Mr Durli said that 60% of the leather produced by Mato Grosso's tanneries goes for export, with China and Italy the biggest markets. The other 40% stays in Brazil, he said, mainly to supply footwear manufacturers in the states of Sao Paulo and Rio Grande do Sul.
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