AICSul fears confirmed
At the start of the year, president of AICSul (the Association of Tanners of the State of Rio Grande do Sul), Francisco Gomes, expressed concerns about the high volume of leather being exported by Brazilian tanners.
Although the levels suggested positive growth, Mr Gomes was worried that companies were selling goods at very low prices in order to keep overseas buyers’ custom. He also feared that the delay in addressing the problems associated with currency rates would eventually cause a decline in exports from the leather sector, thereby impacting on related industries such as footwear and furniture.
These concerns have now become a reality as government figures show that revenues from leather exports fell 16% in September to $156 million compared with $188 million August. This also falls below last September’s total of $158 million.
In response to this, Mr Gomes is now expecting the government to implement various 'rescue' measures that have already been announced, such as the 'Revitaliza' programme and tax reductions.
