The trade ministry in Argentina has negotiated with major tanneries and leathergoods manufacturers in the country to cut prices. The aim is to help keep the sector afloat and to protect local jobs.

According to reports, wet blue prices will be cut from A$5.30 per kilo to A$4.75. Meanwhile, tanneries have agreed to freeze finished leather prices that are sold on to domestic leathergoods manufacturers until the end of 2010.

Leather prices have increased dramatically this year because of a significant decline in cattle slaughter. Slaughter is expected to fall to around 12 million head this year compared with 16 million in 2009.

The scheme is supported by the Argentinean Leathergoods Chamber (CIMA) and the Footwear Chamber of Argentina (CIC).

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