Brazilian leather manufacturing regions say that they are suffering as a result of the outbreak of foot-and-mouth disease (FMD) that occurred in the state of Mato Grosso do Sul. The shortage of hides has caused an average increase in leather prices of 10% and some companies have already started to reduce their workforces.

In the state of Rio Grande do Sul, which produces 27% of Brazil’s total leather output, raw material is scarce and prices have risen 8%. In Mato Grosso do Sul, tanneries that normally process 12,000 hides per day have been forced to reduce their output to 4,000.

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