Production suffering in Peru as local hides and skins are snapped up overseas
17/02/2015
Local industry associations have said Peru’s leather producers have reduced the volume of hides passing through their drums by around 50% since October 2014 and that around 30 of the 200 tanneries in the cluster at Arequipa have halted production altogether because of a lack of raw material.
Alejandro Céspedes, president of a tanning industry association in Arequipa said in recent comments to local media that some of his member companies could go out of business by the middle of this year if the situation fails to improve.
A study carried out by national association Cacurpe concluded that 350,000 domestic hides and skins failed to reach Peruvian tanners in 2014 and went to countries such as Italy, Spain Portugal or the US instead. It said this represented around 30% of the whole of Peru’s domestic hide production.
“The government is turning its back on us,” Mr Céspedes said. “It’s allowing overseas competitors to take our raw material and then allowing companies to import shoes into Peru that are really of very poor quality.” He said the government should instead apply measures to help Peruvian companies make full use of the country’s hides and skins.
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