Minimum prices for wet blue threaten Brazilian exports
The recent decision by the Brazilian Ministry of Development and Foreign Trade to set minimum export prices on wet blue hides is said to be preventing companies from exporting their product.
According to the Centre for the Brazilian Tanning Industry (CICB), the calculations for the minimum price of wet blue imposed by the Foreign Trade Department were based on the lowest price for wet blue for the months of July, August, and September. The minimum price was – according to the CICB – based on a blanket calculation that did not consider quality grading, or production or trading differences across the country (especially one so vast as Brazil). It is claimed that this has led to a situation where export contracts that had already been signed ended up bearing a lower price than the minimum price required, therefore, leading to the goods not being shipped.
