Argentinean tanners cannot get hold of enough hides

23/04/2014
According to local business media, the government in Argentina is heading for a stand-off with packer firms over the availability and price of hides.

Buenos Aires-based business newspaper BAE recently published comments from a meat industry association, Ciccra, suggesting that packers believe the government may intervene directly in the matter. Industry and commerce ministries have both asked packers to lower hide prices in recent months, but the calls have largely gone unheeded. BAE quoted government sources as saying prices rose by more than 50% locally in 2013, but that even higher prices on the international market have led to packers shipping a large proportion of their hides to customers outside Argentina.

Meanwhile, the government has warned that the volume and value of exports of finished leather will show year-on-year declines for 2013. BAE quoted tanning industry leader, Raúl Zylberstein, as saying: “We are unable to meet demand because we cannot get hold of enough hides.”