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IBGE explains how Brazilian tanners source hides

Brazil’s tanneries acquired 8.2 million hides during the second quarter of 2018. This figure is higher than the total number of cattle slaughtered in Brazil during the three-month period, 7.7 million.

Analysis by government statistics agency, IBGE, shows that this number of hides is almost exactly the same as the figure for same quarter last year (it has increased by just over 700 hides).

With regard to the number of hides entering the leather supply chain being larger than Brazil’s cattle slaughter for the quarter, IBGE said the figure, 500,000 hides, reflects the levels of unofficial cattle slaughter in Brazil.

It explained that the official slaughter figure of 7.7 million head comes from sources that are subject to official inspection. Some hides come from other sources.

IBGE surveyed almost 100 Brazilian tanners to find out where they source their raw material from. Its conclusion was that 65.5% of hides come from slaughterhouses connected to packer companies. Another 24.8% come from other tanneries, typically outsource wet-end partners.

From the same survey, IBGE concluded that 7.1% of hides reach tanners by way of intermediaries who collect raw hides and preserve them until they can sell them on. A small number, 1.1%, comes from communal slaughterhouses run by local authorities, with 1.5% coming “from other sources”.

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