Government moves in Ecuador help leather sector crea - leatherbiz: Lea Leatherbiz

News

Government moves in Ecuador help leather sector create 100,000 jobs

23/05/2012
Tanning and footwear industry leaders in Ecuador have spoken in support of a set of government initiatives aimed at improving the performance of the manufacturing sector there for the domestic and external markets.

In 2009, the government set up a funding programme to help small manufacturers invest in new technology and raw materials, including finished leather. At the same time, it invested $1 million in a new design centre in the town of Ambato. It also put in place a tariff regime of $6 per pair, plus 10% of the cost price of imported shoes.

In recent comments, Lilia Villavicencio, president of the footwear manufacturers’ association in the province of Tungurahua, the measures have made a big difference to her industry.

In 2011, the government banned raw hides and skins from leaving Ecuador, allowing tanners there to improve their performance, according to Ximena Albán, president of the national tanners’ association, Ance. She has estimated that the country has an annual kill of around 800,000 head of cattle, although official statistics have been difficult to record in the last few years. More raw material staying in Ecuador has meant more work for local tanneries, she pointed out, and in return her industry has agreed to become more regularised, with most tanneries now registering with the fiscal authorities.

The province of Tungurahua is home to 85% of Ecuador’s tanneries (there are others in Chimborazo, Imbabura and Azuay), as well as to the majority of Ecuadorean footwear manufacturers. Ms Villavicencio said in a recent interview with local media that the number of shoe producers has grown from 600 in 2008 to 4,500 now. Also, the number of shoes produced by her member companies has increased from 15 million pairs in 2008 to 28 million pairs last year. She said the sector has been able to create 100,000 new jobs over this time.

In parallel, footwear consumption in Ecuador has increased from one or 1.1 pairs per person in 2008 to two pairs now. Lilia  Villavicencio said shoes used to come into Ecuador from China at a cost of $0.45 per pair, which made it impossible for local manufacturers to compete. The government initiatives have changed that.


Leatherbiz.com cannot be held responsible for content if the language setting is changed from English.

The translations provided by Google Translate are automated and therefore might not be accurate and may contain incorrect, offensive or misleading language. We offer this facility as a guide only.