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The Brazilian leather sector has began 2014 by exporting tanned, crust and finished leather worth a total of US$200 million in the first month of the year.
According to the Department of Intelligence of the Centre for the Brazilian Tanning Industries (CICB), and with preliminary data from the Department of Foreign Trade – Ministry of Development, Industry and Foreign Trade (MDIC), the value registered in January represents an increase of 21.3% compared to the same month in the previous year.
José Fernando Bello, Executive President of CICB, predicts that 2014 will bring with it challenges as well as high expectations for the Brazilian leather sector.
From January 1, Brazil is no longer part of the Generalised Scheme of Preferences (GSP), which may lead to a monetary reduction of 3.5% in exports and the GSP exclusion has already started working against Brazilian exporters towards the end of 2013. According to Bello, Brazil’s removal from the GSP has already impacted in reduced orders from European clients, the major buyers of Brazilian leather.
CICB is organising a series of promotions to other countries to promote exports. In the first quarter of 2014, there is a large Brazilian participation at Cuir A Paris, at Fimec and also at APLF MM&T in Hong Kong, where Brazil is the focus country.
If global demand for leather continues this year Bello foresees further growth between 8-10% in Brazilian exports during 2014. 2013 was a record year for the country’s leather exports.