What goes up - Brazilian wet blue producers warned of leaner times ahead
The Brazilian leather and shoe industry analyst, Andre Mauricio dos Santos, has warned that the high prices currently being paid for wet blue hides cannot last indefinitely.
The combined effect of the 9% export duty on wet blue and the high prices themselves will inevitably start to push levels of overseas demand down, said dos Santos. However, against the backdrop of the European Foot and Mouth Disease crisis – and the high levels of demand for Brazilian wet blue hides that the outbreak is generating – few in the trade are fretting at the prediction.
Flavia Fuga Iserhard, commercial director of the Brazilian tannery Luiz Fuga & Cia. Brazil, estimates that sales for his company in 2001 will exceed last year's figure by at least 30%. In recent weeks, the company has ramped production up to 2000 square metres per month - approximately 55% of which is bound for export. "Compared with European and American leather, Brazilian leather has always been regarded as second best, even though the differences are relatively minor." said Iserhand. "Now, manufacturers are finding that have no choice but to come to us."
Amadeu Pedrosa Fernandes, commercial and industrial director of Arthur Lange SA Ind. & Com. and vice-president of CICB - Centre for the Brazilian Tanning Industry - is similarly upbeat. Even leather that would previously have been rejected because of tick or other parasite marks is now finding a ready market, said Fernandes, who went on to disclose that production at his tannery is now running at 2000 hides per day, compared to 1500 hides in March last year.
Nestor de Paula, president of Abicalcados – the Brazilian Association of the Footwear Industry has warned the association’s smaller member companies to plan ahead carefully to avoid running out of raw materials.
