Long-term price drop challenges Brazil’s exports

22/09/2025
Long-term price drop challenges Brazil’s exports
Brazilian hide prices have fallen sharply over the past decade, raising concerns about employment and competitiveness, according to news agency Reuters.

Data shared with the news agency, from Durli Leathers, shows that a hide worth $59 in 2014 is now valued at about $5, equivalent to 0.5% of a cattle head’s price compared with 14% a decade ago.

Durli CFO Christiano Frizzo said Brazil exports 80% of its unprocessed leather, with shipments totalling $1.25 billion in 2024, citing CICB figures. He linked the price decline to global oversupply, weaker international demand, and fossil-based substitutes promoted by petrochemical companies.

Other pressures include disease risks from pasture-raised cattle and quality losses caused by hot branding. Mr Frizzo argued that innovations such as digital ear tags for traceability could support recovery. According to Sebastiao Silva of a tanners’ association in Mato Grosso, repeated branding from multiple ownership changes further undermines hide quality.