Brazilian green hide prices fall 25%
After a sustained period of high prices, the price of Brazilian green leather has at last started to drop.
According to Amadeu Fernandes, ex-vice-president for strategic management of CICB – Centre for the Brazilian Tanning Industry – prices have fallen by nearly 25% in the past two months.
"Lower green leather prices during the summer are nothing new, simply because less leather gets used in the production of summer shoe styles," Fernandes said. "But this year we are seeing the process starting earlier than usual - mainly because things are beginning to get back to normal after the livestock disease-induced price rises of earlier in the year.
"In part, it is also due to a greater acceptance of synthetic alternatives. When the price of leather went up, many footwear producers took the opportunity to find out how much cheaper synthetic alternatives can be, and it is this that is helping to bring green leather prices down to earth again faster than normal. Prices are also being driven down by the improving supply situation from Europe.
"With prices dropping the way they are, I believe we are not far distant from the point at which the cost advantages of leather will reapply themselves, and synthetics will once again recede into the background. When this happens, leather prices will stabilise and leather will again become the automatic choice for footwear production."
