Inflation frustration for Argentinian exporters
19/05/2008
An increase in raw materials costs has removed any benefit in export markets leather producers in Argentina have gained from currency fluctuations, according to Raúl Zylberstein, president of the chamber of leather producing industries in the South American country.
Mr Zylberstein has told local media: “Leather exports are a very complicated subject at the moment. In contrast with previous instances, the increase in costs is a global phenomenon. That means it's no so difficult for us to explain a rise in costs to our clients in Argentina. But things go against us—and to a great extent—when we look to sell in external markets.”
Apart from materials, Mr Zylberstein explained that one of the principal contributors to inflation in Argentina is a recent 27% increase in labour costs brought about by collective bargaining agreements. He said this was adding between 10% and 15% to the price of Argentinian leathergoods in external markets.
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