Brazilian leather exports reached $128.95 million in February, a 27% increase over the same month in 2005. However, a 56% rise in wet blue exports from $28.84 million to $ 44.89 million as compared with January 2005 is a cause for concern for those involved in the industry as finished leather exports dropped 4% from $ 47.5 million to $ 45.63 million.

Cézar Müller, president of the AICSul, Association of Tanners of the State of Rio Grande do Sul, the largest region of added-value leather production in Brazil, stated, "This growth in leather exports is the result of a significant increase in wet blue exports and a moderate increment in finished leather sales. So far this year, 63% of all leather exported from Brazil has been wet blue, a low-added value article. This is a terrible waste of technological potential for our industry.” He also commented that the low US dollar exchange rate could also be adding to the severity of the situation as this still allows the export of commodities, but has considerably reduced the competitiveness of higher added-value goods.

Italy remains the largest importer of Brazilian leather, followed by China and Hong Kong.