Argentina: local tanneries outbid by Chinese rivals for sheepskin

10/02/2011
Argentina’s industry secretary, Eduardo Bianchi, has told leather industry representatives that the government is aware of a raw material supply problem that has hit the country’s sheepskin tanners in recent months and has said it will take steps to help.

Tanners have complained of a lack of raw material after what they have called “an explosion in demand” for skins from rivals in China. Chinese tanners are reported to have been paying as much as $8 per raw skin, while local tanners pay only $5 and feel it would be impossible for them to pay more.

Mr Bianchi said the government wanted to protect jobs in the sector and would work with the leather industry and its suppliers to make sure some of Argentina’s sheepskins stay in the domestic market.