Nicaraguan packers want to defy government hide export rules

19/03/2013
The president of a business association in Nicaragua, José Adán Aguerri, has called on the government to allow meat companies to defy restrictions on exports of raw hides.

At the end of 2012, the government imposed restrictions that mean that, for 12 months, meat processors in Nicaragua will be allowed to export only 10% of hides in a raw state.

Mr Aguerri leads Cosep, an association representing private-sector companies in the Central American country. He said that four large packer firms (Matadero Central, Nuevo Carnic, Carnes San Martín and Novaterra) have held discussions with the small and medium-sized companies that make up the Nicaraguan footwear manufacturing sector. As a result, Mr Aguerri has told local media, the packers are satisfied that only 30% of hides would be enough to meet domestic demand.

His comments appeared not to take into account the value that tanneries can add. Even if local footwear manufacture consumes a smaller number of hides than the government insists must not be exported raw, tanners in Nicaragua can process finished or semi-finished leather to make a more valuable export product while creating and supporting jobs on home soil.