Trading opportunities discussed at Brazilian tanners’ meeting
Two main issues were on the agenda at a recent meeting between CICB – the Centre for the Brazilian Tanning Industry and Dr. Roberto Giannetti da Fonseca, Executive Secretary of the Foreign Trade Chamber.
The first was the CICB’s proposal to create a strategic stockpile of wet blue leather, aimed at stabilising prices in the international market as necessary. In order to set up the stockpile, funds will be required to set up one or more trading companies for the leather sector, CICB said.
The second main issue was the proposed creation of a new trading company, dedicated to the development of new market niches and export opportunities for the Brazilian leather sector. At the meeting, delegates heard from representatives of Sertrading S/A, the consulting organisation that is most likely to help in the formation of the trading company. They said such a company would bring a range of important benefits to the CICB membership spanning the commercial, operational, customs, financial and fiscal areas of their businesses.
By purchasing all the components necessary for the processing of the raw material and paying the tanneries for the services they render, the new company would reduce the need for the tanneries to spend large amounts of working capital. At the same time, by taking care of businesses’ import and export operations, it would ensure that international logistics procedures were adhered to. It will also reduce their tax liability through the facilitation of tax recovery and credit, the consultants said.
They concluded by saying the benefits of the trading company would be far-reaching, allowing the Brazilian leather trade to raise its profile in the international marketplace while bringing a greater degree of cohesion between its marketing, financing and distribution activities.
