Brazil: hide exports down in July

18/08/2011
As a result of lower slaughter numbers and what the Centre for the Brazilian Tanning Industry (CICB) has called “the increasing loss of competitiveness of Brazil’s tanning industry” the South American country registered sharp falls in its leather exports for June and July.

Brazilian tanners exported 1.7 million hides in July, the smallest number since March 2009, achieving export earnings of $148.7 million. The value of July’s exports represent a decline of 11% on the previous month.

Better news from CICB’s point of view was that the cumulative figures for 2011 show a total number of exported hides for the first seven months of the year of more than 16.3 million, still 1% above the figures for the same period in 2010. Also, the cumulative value of the 2011 exports show far, $1.2 billion, is 18% higher than last year.

One of the reasons for higher value is that 65.7% of exports are of crust or finished leather, which CICB says is a record. This suggests that Brazilian tanneries are adding more value on home soil than ever before. In 2000, 70% of hide exports were wet blue. After the first seven months of 2011, the proportion of hides that have gone to overseas customers as wet blue is 34.3%, the lowest ever figure.