São Paulo – Brazilian imports of goat and sheep hides and skins, destined to the shoe industry, should increase in the next half of the year. The reason for that is the tax exemption for imports of those items, which was approved this week. Foreign suppliers of Brazil include the Arab countries. "The leading suppliers of goat and sheep hides are the African countries, and those include some Arab countries," said the executive director at the Confederation of Brazilian Hides and Skins Industries (CICB), Luiz Bittencourt.
From January until July this year, Brazilian imports of skins and hides in general from the Arab countries totalled US$ 1.34 million. The main Arab suppliers include Egypt, Saudi Arabia, and Algeria, from where Brazil imports bovine, sheep and goat leather. In the first seven months of 2007, imports of the latter two items totalled US$ 390,000. "Brazilian imports are going to increase for certain," said Bittencourt.
According to him, the Brazilian production of sheep and goat leather is not enough to meet the domestic demand. Currently, the national production capacity is 12 million units per year, but raisers are only able to supply 7 million tonnes, therefore there is a need to import. These types of leathers account for 15% to 20% of the market, and virtually the entire production is in the northeastern states. "Leather from the northeast region has no wool, therefore it is applied to shoes because it looks like some sort of bovine leather. The skins of the southern region, on the other hand, cannot be used in this sector," said Bittencourt.
In previous years, Brazil also imported leather from the United Arab Emirates and Somalia, which may occur again in the face of the tax exemption. In total, Brazilian imports of leather in general in the first seven months of this yaer totalled US$ 89.76 million, an 11.8% increase over the same period of 2006. The data were supplied by the Foreign Trade Secretariat (Secex) of the Brazilian federal government.
Exports
Although Brazil needs to import sheep and goat skins and hides, the country is one of the world's leading producers of leather, with a processing capacity for around 45 million tonnes. Furthermore, Brazil is the world's largest exporter of leather, at 35 million pieces a year. One of the main reasons for this leadership is the abundance of raw material supply, as the country has more than 200 million heads of bovine cattle heads, the world's largest commercial herd.
Leather ranks among the main products exported by Brazil. From January until July, the country exported the equivalent of US$ 1.28 billion, an increase of 26.5% compared with the same period of last year. Just to have an idea, foreign sales of bovine meat yielded US$ 2.5 billion in the accumulated result for the first seven months in 2007.
The industrial complex in the sector is comprised of 800 companies that operate in leather production and processing. The activity generates a turnover of around US$ 3 billion in the country and employs 45,000 people, according to the CICB.
From January until July this year, Brazilian imports of skins and hides in general from the Arab countries totalled US$ 1.34 million. The main Arab suppliers include Egypt, Saudi Arabia, and Algeria, from where Brazil imports bovine, sheep and goat leather. In the first seven months of 2007, imports of the latter two items totalled US$ 390,000. "Brazilian imports are going to increase for certain," said Bittencourt.
According to him, the Brazilian production of sheep and goat leather is not enough to meet the domestic demand. Currently, the national production capacity is 12 million units per year, but raisers are only able to supply 7 million tonnes, therefore there is a need to import. These types of leathers account for 15% to 20% of the market, and virtually the entire production is in the northeastern states. "Leather from the northeast region has no wool, therefore it is applied to shoes because it looks like some sort of bovine leather. The skins of the southern region, on the other hand, cannot be used in this sector," said Bittencourt.
In previous years, Brazil also imported leather from the United Arab Emirates and Somalia, which may occur again in the face of the tax exemption. In total, Brazilian imports of leather in general in the first seven months of this yaer totalled US$ 89.76 million, an 11.8% increase over the same period of 2006. The data were supplied by the Foreign Trade Secretariat (Secex) of the Brazilian federal government.
Exports
Although Brazil needs to import sheep and goat skins and hides, the country is one of the world's leading producers of leather, with a processing capacity for around 45 million tonnes. Furthermore, Brazil is the world's largest exporter of leather, at 35 million pieces a year. One of the main reasons for this leadership is the abundance of raw material supply, as the country has more than 200 million heads of bovine cattle heads, the world's largest commercial herd.
Leather ranks among the main products exported by Brazil. From January until July, the country exported the equivalent of US$ 1.28 billion, an increase of 26.5% compared with the same period of last year. Just to have an idea, foreign sales of bovine meat yielded US$ 2.5 billion in the accumulated result for the first seven months in 2007.
The industrial complex in the sector is comprised of 800 companies that operate in leather production and processing. The activity generates a turnover of around US$ 3 billion in the country and employs 45,000 people, according to the CICB.
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