Brazilian leather manufacturing regions say that they are suffering as a result of the outbreak of foot-and-mouth disease (FMD) that occurred in the state of Mato Grosso do Sul. The shortage of hides has caused an average increase in leather prices of 10% and some companies have already started to reduce their workforces.
In the state of Rio Grande do Sul, which produces 27% of Brazil’s total leather output, raw material is scarce and prices have risen 8%. In Mato Grosso do Sul, tanneries that normally process 12,000 hides per day have been forced to reduce their output to 4,000.
Ildomar Carter, director of Curtume Brasil, Mato Grosso do Sul, said that his company has reduced the number of employees from 210 to 140. We used to receive 2,500 hides per day but now we are only getting 1,200."
