Footwear exports up in first quarter
07/05/2008
The Brazilian Association of Footwear Manufacturers (Abicalçados) has announced that, in the first quarter of 2008, Brazil exported 54.2 million pairs of shoes with a value of $519.5 million according to data released by the Foreign Trade Department (Secex).
These numbers show an increase of 8.1% in volume and 5.2% in value compared to the same period of last year.
However, during the first three months of the year Brazil exported more synthetic than leather shoes. This switch from leather to synthetic materials was already a source of concern for local footwear manufacturers because leather footwear employs more people; they have warned that more jobs could be lost if the trend persists.
On the leather shoe front, 18.5 million pairs were exported at an average price of $19.45 per pair, generating a revenue of $360.7 million. This represents a 22% drop in volume but only a slight drop in value.
Ricardo Wirth, vice-president of Abicalçados, explained: “At the moment, leather shoes are just 34.1% of the volume shipped. Exporting is very difficult these days and most manufacturers are not making any profit. Seven years ago, the US market used to import 80% of Brazil’s total footwear exports. Today, it only takes approximately 30%.”
The overvaluation of the Real, the global recession and US financial crisis are being blamed for the current situation of Brazilian leather footwear exports.
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