The Week at a Glance
- Brazilian prices are unchanged
- Argentina: Per capita beef consumption drops 18.5% in March
- JBS to have largest beef facility in Latin America
- Mexico: Leather manufacturing employment drops 8%
- Mexican government support offered for footwear sector
- Paraguay: Plan: Slaughterhouses should no longer be in Coastal Strip
Click here to read the report in Spanish
Raw/Fresh Skins
This week in Brazil, the real closed the week at R$5.2506 against the US dollar compared to R$5.0759 last week. The average price of fresh hides increased to R$0.91/kg.
Zebu hides rose to R$0.65 to R$1.00/kg (with hump). Gaucho hides also rose to R$1.00 to R$1.10 kg (without hump).
For the cattle market, ranchers still control the pace of business. Rainfall increases supported pastures and provided cattle ranchers with good retention conditions. Meat packers still face slaughter schedules between seven and ten working days. Industries continue to buy just enough to guarantee filled slaughter schedules, while producers regulate the supply, betting on higher prices. An arroba is now worth R$232 in São Paulo, while fat cows and heifers trade for R$205/arroba and R$220/arroba, respectively (gross and forward prices). “Chinese cattle” slaughtered in São Paulo are priced at R$235 per arroba. For the fresh market, with controlled slaughter and a reduction in available hides, prices rose due to the tanneries’ needs to fill contracts signed before the Hong Kong fair, especially in the best classifications.
Note: 1 arroba = 15kg = 33 lbs.
Sources in Argentina say that the price of cows went down 3 cents again. Other prices remain the same.
Wet salted hide exporters had to accept a couple of dollars less per hide to sell some quantities.
From Uruguay, INAC reports that slaughter for the week ending April 13 was up 25.3 percent from the previous week. For the year to date, the slaughter total is 7.1 percent higher than last year.
Wet Blue & Crust
Brazil‘s domestic market did not change much. There is great difficulty negotiating new orders because of political and economic uncertainties in Brazil. There is also difficulty obtaining new contracts for export to the global market.
With an increase in available fresh hides in some Brazilian regions, there will be resistance in the global market towards accepting new prices. Suppliers should remain firm, however, and they should not accept new bids.
Asian buyers continue to hold shares with caution — that is, they purchase only what is necessary and where suppliers have accepted offers below list prices. Leather businesses are currently closed based on discounts or other advantages. This situation should continue if supply remains higher than Asian demand.
The European market continues to experience unstable and weak demand. All consumer sectors have been impacted by the war, which has caused uncertainty on the continent. Leather consumption remains the same as in recent months.
PRICES IN BRAZIL
FRESH HIDES US$/Kg | This Week | Last Week |
US$0.17 | US$0.17 |
WET BLUE WHOLE HIDES FULL SUBSTANCE | This Week | Last Week |
Grade TR1 23Kgs+ | 0.68 | 0.65 |
Grade TR2 22Kgs+ | 0.60 | 0.57 |
Grade TR3 21Kgs+ | 0.52 | 0.49 |
Grade TR4 19Kgs+ | 0.44 | 0.41 |
WET BLUE WHOLE HIDES 20 mm+ | ||
Grade TR1 47/52ft | 0.58 | 0.55 |
Grade TR2 47/52ft | 0.50 | 0.47 |
Grade TR3 45/50ft | 0.42 | 0.39 |
Grade TR4 45/50ft | 0.32 | 0.29 |
WET BLUE SIDES 24mm+ | ||
Grade AB 22/26ft | 0.58 | 0.55 |
Grade C 22/26ft | 0.50 | 0.47 |
Grade D 22/26ft | 0.20 | 0.17 |
Grade E 20/26ft | _ | _ |
Grade F 20/26ft | – | – |
WET BLUE SPLITS* | ||
6/9 Kgs (Glove standard) | 0.70 | 0.70 |
7/10Kgs | 0.90 | 0.90 |
10/12Kgs | 1.00 | 1.00 |
14 kg+ | 1.10 | 1.10 |
CRUST ( UPHOLSTERY ) 9/11 mm Stucco & Buffed | ||
TR 01 | 0.92 | 0.92 |
TR 02 | 0.82 | 0.82 |
TR 03 | 0.72 | 0.72 |
CRUST ( AUTOMOTIVE O&M ) 11/13 mm | ||
TR 01 | 1.20 | 1.20 |
TR 02 | 1.10 | 1.10 |
TR 03 | 1.00 | 1.00 |
CRUST ( AUTOMOTIVE O&M ) 11/13 mm | ||
TR 01 Vacuum Dry | 1.22 | 1.22 |
TR 02 Vacuum Dry | 1.12 | 1.12 |
TR 03 Vacuum Dry | 1.02 | 1.02 |
CRUST SIDES FOR SHOE UPPER BLACK DYED THRU | ||
ABC 12/14 mm 14/16 mm | 0.87 | 0.87 |
D 12/14 mm 14/16 mm | 0.85 | 0.85 |
PRICES IN ARGENTINA
Wet salted prices per kg
Crust prices per square foot
ARGENTINA | This Week | Last Week | |
Raw hides (Wet salted) | |||
Steers | $0.55 | $0.55 | |
Cows | $0.36 | $0.39 | |
Heifers | $0.55 | $0.55 | |
Crust for shoe upper, 1.2/1.4 mm, black dyed thru* | ABC | 1.80 | 01.80 |
CDE | 1.45-1.50 | 1.45-1.50 | |
Crust whole hides for upholstery 0.9/1.1 mm** | Auto | 1.20-1.40 | 1.20-1.40 |
Furniture | |||
Wet blue drop splits, average 9/11 kg, selection TR*** | Auto | 1.20-1.30 | 1.20-1.30 |
**Usually for full grain selections.
*The selection composition determines the price.
PRICES IN URUGUAY
Uruguay’s market is steady
Prices in Uruguay remain stable but are under pressure to increase.
SALTED | US$23.00 per hide/28 kg FOB |
FRESH | US$0.50 per kilo |
WET BLUE 14/16 AB | US$0.90 |
WET BLUE 14/16 TR01 | US$0.65 |
WET BLUE 14/16 TR02 | US$0.55 |
WET BLUE 14/16 TR | US$0.70 (AB/TR1/TR2 = 30/40/30) |
CRUST 10/12 TR01 | US$1.05 |
CRUST 10/12 AUTO | US$1.45 |
CRUST 10/12 AUTO | US$1.55 (Vacuum Dry) |
We remind readers that all price tables are intended as a basis to illustrate trends. Our prices quoted do not reflect quality changes present between one and the other source. Hidenet.com recognizes that there is a variety of factors able to determine different prices for similar materials.
PRICES IN COLOMBIA
Colombian prices are steady
Colombian prices remain unchanged.
Salted | 26/28 kg | US$0.40/kg |
Salted | 30/32 kg | US$0.50/kg |
WB | TR1/TR2 20/22mm+ | US$ 0.42 per sq ft |
WB | TR3 | US$ 0.34 per sq ft |
We remind readers that all price tables are intended as a basis to illustrate trends. Our quoted prices do not reflect quality changes between one source and the other. Hidenet.com recognizes that there is a variety of factors able to determine different prices for similar materials.
PRICES IN CHILE
Chile’s market did not move
The Chilean market continues to be steady.
TR1 | USD 0.80 (full substance | US$0.70 16mm+ |
TR2 | USD 0.70 (full substance) | US$0.60 16mm+ |
TR3 | USD 0.60 (full substance) | US$0.50 16mm+ |
Wet blue prices are per square foot.
We remind readers that all price tables are intended as a basis to illustrate trends. Our quoted prices do not reflect quality changes between one source and the other. Hidenet.com recognizes that there is a variety of factors able to determine different prices for similar materials.
INDUSTRY NEWS
ARGENTINA
Per capita beef consumption drops 18.5% in March
La Nacion
Per capita beef consumption fell 18.5% in March compared to the same month in 2023, thanks to inflation causing a strong loss in consumer purchasing power. Consumption had the worst record in 30 years.
“In January-March 2024, the beef meat processing industry produced 745,000 tons of bone-in beef, 7.6% less than in the first quarter of 2023. In absolute terms, 61,200 tons less bone-in beef was produced,” says a Chamber of Meat Industry and Commerce (Ciccra) report.
Ciccra noted that “considering that beef exports remained around 85,000 tons of beef with bone in March, in the first three months of the year 245,200 tons of beef with bone were exported, representing an increase of 22.9% year-on-year (+45,700 tons of bone-in beef).”
During January-March beef consumption was 17.6% lower than in the same quarter last year. Per capita beef consumption in March was 42.6 kilos/year, 18.5% lower than March 2023. The moving average for beef consumption in the past 12 months remained at 50 kg/inhabitant/year in March, 4.2% below last year’s average.
Ciccra President Miguel Schiariti said the drop in consumption is directly related to purchasing power.
“Although meat increased [in price], this increase was less than the rest of the other products; it rose 9.5% [in March] and the rest [of the products] 11.5%,” Schiariti said.
CIC to present on footwear trends
The Argentine Chamber of the Footwear Industry (CIC) will present on “Summer 2025 Footwear Trends” on May 2.
Designer Mariana Marrari will present, explaining the necessary guidelines when designing a collection’s orientation. She will analyze international catwalks, various magazines and specialized sites to learn about new trends in footwear, leather goods and accessories.
The event is organized by the National Institute of Industrial Technology (INTI) and the CIC.
Taxes a high part of domestic clothing prices
The Argentine textile and clothing industry faces an increase in production and tax costs and pressure from imports.
A decrease in the population’s purchasing power has also curbed clothing purchases, despite clothing prices having increased below inflation.
According to data from the ProTejer Foundation, there are great domestic clothing price disparities. Rental, logistic, intermediary, advertising, marketing and tax costs explain these discrepancies.
The foundation showed that 75.2% of clothing’s final consumer price in a shopping center is allocated to taxes, financial services and rent.
CIC invites partners to Encadenar 2024 multi-sector business round
The Chamber of the Footwear Industry (CIC) of Argentina has invited all of its partners to join the “Encadenar 2024 multi-sector business round,” organized by the Pro Buenos Aires Foundation.
This event will occur on April 26 in the Autonomous City of Buenos Aires and on May 17 and June 14 in the South Zone.
Encadenar will serve as an opportunity to meet clients and suppliers, in an event in which entrepreneurs, service professionals, businesses, industries, work cooperatives, technical schools and universities participate.
BRAZIL
JBS Brazil Goias plant temporarily closed
Labor auditors closed a JBS beef plant in the Brazilian state of Goias for two days over irregular work conditions, reported Reuters.
Auditors found employees routinely worked shifts of 10 to 16 hours a day. The plant reopened after the company presented a plan to adjust work conditions. The facility has about 970 employees and can process more than 80 cows per hour.
The Brazilian agriculture ministry states that JBS’ Senador Canedo plant is authorized to export beef to Egypt, Mexico, Singapore, China, and other countries.
JBS to have largest beef facility in Latin America
JBS announced it will double the processing capacity and workforce at its Campo Grande II unit, in Mato Grosso do Sul, making it the largest beef plant in Latin America and one of JBS’s three largest in the world. The company will invest R$150 million over the next year to increase production from 2,200 to 4,400 animals. The number of employees will jump from 2,300 to 4,600.
The announcement came during an event marking the first shipment of beef from this factory to China. The JBS Campo Grande II unit was one of 38 authorized by the Chinese government on March 12.
“These 38 qualifications for China mean a gigantic step for Brazilian agribusiness. They mean growth, job creation and income. For industry, for the countryside, for people, for commerce, for cities,” said Gilberto Tomazoni, JBS’s CEO. “Many countries operate in many countries around the world, and none of them are today as attractive as Brazil to invest in agribusiness,” he added.
New qualifications
Before this recent list of qualifications, Brazil had 106 plants qualified to export to China. Now there are 144. Mato Grosso do Sul had only three licensed beef facilities, now increased to nine.
With the additions, beef production units in Mato Grosso do Sul can now ship a volume equivalent to 2.3 million animals, up from 1.87 million. Previously, the number of exports to China was equivalent to, at most, 467,000 heads. Considering the state’s processing share, China’s shipping potential rose from 11.4% to 57.1%.
INSPIRAMAIS’s 30th edition set for July
INSPIRAMAIS’s 30th edition, the main exhibition for innovation and sustainability for fashion and design production, will be on July 9-10 in Porto Alegre/RS. Registration is currently open.
The Hub will foster an ecosystem of innovation and sustainability for design, praising new technologies and Brazilian design and crafts by connecting them with the market and highlighting their original character. The selection of materials will be guided by research from the salon’s Design Center, revealed Flávia Vanelli, the project coordinator.
Registered components and services must be intended for one of the segments in which INSPIRAMAIS is involved: fashion (clothing), footwear, accessories and jewelry and/or furniture. Materials may include soles, insoles, heels, fachets, leathers, metals, laminates, fabrics, weaves, decorations, trimmings and so on. Services must be consultancies for new materials and technologies development.
“In the selection, we took into account aspects such as appreciation of Brazilian cultural heritage, innovative content, environmental elements, sustainable development, solidarity and multicultural interface, generation of employment and income, technology, functionality and others,” explained Vanelli.
Twenty-five innovative and sustainable materials or services will be selected for participation in the collective space.
The event
The 30th edition of INSPIRAMAIS should bring together more than 150 inputs and materials exhibitors and will be visited by 7,000 people from Brazil and around the world. The event is a promotion of the Brazilian Association of Component Companies for Leather, Footwear and Artifacts (Assintecal), in partnership with the Center for the Brazilian Tanning Industry (CICB), the Brazilian Association of the Textile and Apparel Industry (ABIT) and the Brazilian Association of Furniture Industries (Abimóvel). It is conducted by the Brazilian Materials program in partnership with Sebrae Nacional.
Mato Grosso hits cattle slaughter record in first quarter
Rural Globe
The first quarter of 2024 marked a significant increase in cattle slaughter in Mato Grosso. According to information from the Agricultural Defense Institute of the State of Mato Grosso (INDEA) and a Mato-Grossense Institute of Agricultural Economics (Imea) report, the state reached 1.76 million heads of cattle, an increase of 30.88% compared to the same period in 2023, which is a historic record.
In January, Mato Grosso recorded 615,140 cattle slaughtered, an increase of 29.71% compared to January 2023, which was 474,240 cattle. In March, the indicators show the state’s west region with the highest number of slaughters, with 116,527; in second place comes the central-south region, with 92,398, and third is the north region, with 92,206. According to the Instituto Mato-grossense da Carne (Imac), favorable rains in recent months, which led to pasture growth, contributed to these numbers. Females were the growth’s main drivers. “The report shows an increase in the slaughter of females by almost 10% compared to January 2023. We observed that these slaughter ages increased for animals over 36 months old,” explained Imac’s technical analyst, Valdecir Júnior.
The drop in calf prices also led to a higher number of females slaughtered than males. “According to the report, these are discarded females that are being fattened and slaughtered due to the price of replacing calves being lower. It is not interesting for producers to bet on selling the offspring. So, they end up doing these discards and slaughtering these older females,” explained Valdecir.
The livestock sector began with good results. Both the domestic and foreign markets are booming, and the growth is expected to continue. “This projection of a 30% increase in the first quarter leads us to believe that the state will still slaughter more animals than last year,” concluded Valdecir.
Abicalçados participates in Business Forum in Colombia
Haroldo Ferreira, executive president of the Brazilian Footwear Industry Association (Abicalçados), participated in the Colombia-Brazil Business Forum’s opening, held by the Brazilian Export and Investment Promotion Agency (ApexBrasil) with the Ministry of Development, Industry, Commerce and Services (MDIC), the Ministry of Foreign Affairs (MRE) and ProColombia. The event brought together businesspeople from important economic sectors in Brazil and Colombia, including footwear.
Ferreira suggested that the initiative points to the countries’ desires to cooperate on foreign trade. “More than speeches, we need practical actions, and this meeting was one of those opportunities in which the presence of business and political leaders from both countries expanded the possibilities of economic integration,” he stated. Colombia is historically one of the main commercial partners of Brazil’s footwear sector and is fundamental for the industry’s exports. “Colombia, in Latin America, is only behind Argentina among our main destinations. In fifth place in the world ranking, Colombia imported, in the first quarter, more than 2.7 million pairs of green-yellow shoes, a number that is stable in relation to the same period last year,” commented Ferreira.
ApexBrasil president, Jorge Viana, also spoke on the event’s strategic nature. “We are living in a historic moment here. It is up to ApexBrasil, together with MRE, MDIC and Procolombia, to work together to take advantage of the great opportunities in both markets,” Viana commented. He also added that studies indicate that Colombia presents more than 1,500 opportunities for expanding Brazilian exports.
Multincoras da Moda project launched
The Multincoras da Moda project, supported by the Brazilian Association of Component Companies for Leather, Footwear and Artifacts (Assintecal), in partnership with the Brazilian Support Service for Micro and Small Businesses of Rio Grande do Sul (Sebrae RS), launched on April 9 in Novo Hamburgo/RS. It aims to support Brazilian companies’ internationalization in the components sector.
The project management team stated that interested companies will receive advice on export documentation, customs clearance, preparation for international business rounds, pricing for the foreign market and more. Companies will also have a guaranteed place at IFLS + EICI (Colombia), Expo Detalles (Peru) and the INSPIRAMAIS Buyer Project this summer.
Aline Santos, Assintecal’s Marketing and Relationship Manager, said the project helps micro and small companies access the international market.
MEXICO
Leather manufacturing employment drops 8.0%
Inegi’s Monthly Manufacturing Industry Survey (EMIM) showed that, in February 2024, employed personnel in the manufacturing sector dropped by 1.5%, with figures adjusted for seasonality and at an annual rate.
In the same comparison, the hours worked decreased to 1.7%, while real average remunerations increased to 4.9%, according to the National Institute of Statistics, Geography and Informatics (Inegi).
All fashion industry divisions recorded negative results in their employed personnel indices.
Specifically, “garment manufacturing” and “manufacturing of textile inputs and finishes” recorded slowdowns of 9.2% and 9.3%, respectively; and “tanning and manufacturing of leather, skin and similar products” recorded a drop of 8.9%.
ANPIC to focus on sustainability
ANPIC’s 63rd edition will focus on the commitment to sustainable materials. The fair will add 25 eco-responsible brands that have developed ecological materials from bamboo, rice husks and recycled products.
Ana María Carpio, executive president of the Association of Supplier Companies of Mexico (Apimex), explained the event will present materials for the Spring-Summer 2025 season. It will be from April 24 to 26, and local suppliers of leather laces, heels, lasts and hardware will participate so that footwear manufacturers can use the materials in the next collection. There will also be suppliers from Colombia, Brazil, Italy and Turkey.
Additionally, there will be a training space where participants will discuss sustainability in fashion, the environment, water care and pollution.
Footwear industry facing import and smuggling problems
In 2023, 120 million pairs of footwear were imported for $1,669 million, an average of $13.80 per pair.
“Almost half of footwear imports enter the country with prices that do not even cover the costs of the materials used in their manufacturing,” said Mauricio Battaglia Velázquez, president of the Chamber of the Footwear Industry of the State of Guanajuato (CICEG).
Velázquez explained that, during January and February, there was a 20% growth in imports, with 26 million pairs.
For bronco smuggling, the estimate is 80 million pairs. He explained that, combining imports and bronco smuggling, the national industry faces an annual income of 200 million pairs.
This leaves a margin of 100 million pairs for the Mexican industry, considering national consumption is 300 million pairs.
“We hope to have positive news very soon, because the work agendas with the federal level are taking place,” he, however, added.
Velázquez explained that, at the end of January 2024 and compared to January 2023, the footwear industry registered a drop of MEX$350 million, derived from an annual decrease of 14%, which translates to 1.5 million pairs, in industrial activity.
Job losses
According to IMSS records, the footwear industry lost 6,558 jobs in February, compared to the same month in 2023.
Production value in footwear manufacturing showed a negative annual variation of 9.6%. The sector’s GDP decreased 7.4% to end 2023, compared to 2022.
“We have not seen this since the year of the pandemic,” said Mauricio Blas Battaglia. The shoe industry continues to face undervaluation, bronco smuggling and imports via courier.
Government support offered for footwear sector
Footwear companies in Guanajuato will be able to access two programs to receive work and productivity support. To access them, they must be formal businesses. The government will offer a “plan to boost the competitiveness and productivity of the footwear sector.”
The initiative will use MEX$40 million to support factories in León and Rincón. The support is an investment, so the beneficiaries will not return the money.
Froylán Salas Navarro, Undersecretary for MSME Development, explained that the economic units must comply with all requirements. He stated that, at the moment, they have MEX$3 million committed in 10 files. The limit per economic unit is MEX$378 thousand.
State support should be used to acquire material, and it must be acquired in the local industry.
“It has a double impact. We are going to support the footwear producing companies, but we are going to acquire the raw materials locally. In this way the economic impact can be doubled,” Navarro explained.
Mauricio Battaglia Velázquez, president of CICEG, stated that the support will keep the industry active while solving the different problems it faces. “We have to transform reality. We are supporting an industry that is in a rut,” Velázquez added.
The municipality will also contribute. María Fernanda Rodríguez, director of the Municipal Economy, explained that this program focuses on job preservation.
Rodríguez highlighted that this sector gave identity to the city, considering that one in three jobs are related to footwear.
The “Program for the protection of employment in the footwear sector” has a fund of MEX$6 million to support 12,500 jobs. “We reaffirm our commitment to the sector, and we know that the programs accompany the sector’s efforts as job generators,” she added.
She explained that, since last week, 23 companies have requested support, with over MEX$2 million committed. The limit is MEX$113 thousand per company.
Mexican leather and skin exports to Brazil increase by more than 1000%
After closing 2023 down, the Mexican leather and fur industry achieved a 1,214% growth in its exports to Brazil in the first quarter, according to the Brazilian Tanning Industries Center’s (CICB) most recent balance sheet.
While in the first three months of 2023 Mexico exported only 1,802 square meters of skin and leather to Brazil, this figure reached 23,678 square meters in the same period in 2024.
Moreover, according to the CICB, Mexico sent 44,000 kilograms of leather and skin to Brazil between January and March of 2024, a 31.6% increase compared to the same period in 2023.
Despite this, Brazil’s investment in “Made in Mexico” skin and leather has decreased.
Specifically, in terms of value, Mexico exported $270,579 in leather and fur to Brazil between January and March, an amount 17.5% lower than the total in the same quarter of 2023. In that period, Mexico netted $327,852 in shipments to Brazil.
PARAGUAY
Plan: Slaughterhouses should no longer be in Coastal Strip
A new master plan for the Coastal Strip suggests that meat processing plants should no longer function as slaughterhouses. Instead, only the last production process should occur in these plants, it argues, which includes packaging and sale. It suggests this because slaughterhouses are the main pollutants of the Bañado Norte water system.
“The refrigerators should not continue there,” said Javier Corvalán, head consultant of the plan, in a public hearing at the Paraguayan Japanese Center.
Although Corvalán stated that many people work in these plants, the plan suggests that slaughterhouses change their activity.
“The idea is that the function of slaughterhouse and livestock transit does not occur here (on the coastal strip) but rather that here it is one of the last processes for the commercialization of meat,” he explained.