Brazil’s provisions and leather slow down in the second quarter

Brazil’s provisions and leather slow down in the second quarter

A few plain figures, to begin with: in Brazil, in 2020 second quarter, provisions of bovine livestock allotted to slaughterhouses have been decreasing by 8% on annual basis. In the same time span, volumes of raw hides and skins, purchased by tanneries, turned out to drop by 12.8%. In other words, CRV outbreak has been remarkably affecting Brazil’s meat and leather industry. Data have been supplied and certified by IBGE, the Brazilian Institute of Statistics.

The second quarter

From April to June, then, they killed 7.3 million bovine livestock units. Such result, +0.3% compared to January-March figures, turns out to be the worst performance ever, achieved in the second quarter of the year, since 2011 to present. As reported by Beef Point, financial analysts stress the fact that pandemic effects have been hitting work activities in two ways: they have hindered end markets, due to lockdown restrictions, and, most of all, have forced the industry to closures and reorganization. More specifically, the situation was most complicated in April, as loss amounted to 15.1%, on annual basis; in contrast, in June (+1.8%), they could see the early signs of potential recovery.

Effects on drums

Likewise, the pandemic has had a few repercussions on the leather tanning industry as well. As reported by IBGE, in the second quarter of the year Brazilian tanneries purchased 7.32 million raw hides and skins. That means a 12.8% downturn on annual basis, like we said earlier, as much as a 3.3% decrease compared to the previous quarter.

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