Argentina: tanners under scrutiny for ignoring local customers
23/10/2015
Leathergoods industry representatives have successfully petitioned the government to investigate tanners over poor availability of finished leather in the local market. The finished product companies claim that tanners are exporting too much leather to customers overseas, leaving them unable to fulfil orders for handbags and other value-add items.
According to leathergoods industry representatives, tanners are taking advantage of hide prices that, they say, have fallen by 60% since the end of last year. They claim tanners are happy to ship finished leather to customers overseas rather than make it available to local producers, who, again according to representatives of the leathergoods companies, are still paying the same price as before and are unable to source all the leather they need from Argentinean tanneries and have resorted to importing leather from Brazil.
The suggestion is that Argentina’s tanners want to avoid having to share the benefit of lower hide prices with customers in the local market.
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