One tannery owner, Francisco Suárez, told Quito-based newspaper La Hora that the cost of hides has doubled since last June and that supplies are now of inferior quality, smaller size and poorer condition. He accused commercial agents inside Ecuador of ignoring the domestic market to sell the best hides to Colombia, Peru and China, at a higher price than local competitors could pay, but at a big discount on the prices they would have to pay if they were following correct trading practice. He suggested this trade was taking place through secret channels and called on the Ecuadorean government to intervene.

The managing director of another tannery, Gonzalo Callejas, agreed, saying the high cost of raw materials was putting thousands of jobs in danger as the cost of locally made shoes has risen, forcing consumers to buy cheaper imports from Asia.

The president of the National Association of Ecuadorean Tanners, Eduardo Lanas, told the newspaper that his organisation was working to try to understand how many hides were leaving the country, and by what means. "At least 50% of our supply is going outside Ecuador," he said, "much of it without any benefit or any kind of added-value for the industry here." He estimated that Ecuador has lost 40% of its leather production capacity in the last four years as more and more facilities close down. He claimed that, since the latter part of 2006, the leather industry in Ecuador has been in crisis.

Mr Lanas said his association still believed Ecuadorean companies could produce leather, shoes and leather goods of a high enough quality to make an impact on the international market, but that they had to have the raw material to work with.

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