Brazil proves to be short of breath as exports of leather and shoes collapse

Brazil proves to be short of breath as exports of leather and shoes collapse

Covid-19 has been affecting Brazil’s leather industry, which proves to be short of breath now. According to data provided and made public by SECEX (the Secretariat of Foreign Trade), in May 2020 Brazilian exports of raw hides and skins amounted to 55.3 million dollars. By contrast, in May 2019 they had reached 107.8 million dollars. In other words, 48.7% more.

Leather is short of breath

Such downturn, instead, amounts to 20.8% while comparing sales trend to April: at that time, they had reached 69.9 million dollars. In terms of volumes, in May Brazil exported 10.1 million square metres of hides and skins, which have therefore decreased by 36.6% compared to May 2019. Compared to April, when overall volumes amounted to 12.5 million square metres, exports have dropped by 19.4%.

End markets

China is still the most important end market for Brazilian leather. From January to May 2020, China’s imports accounted for 24.8% of sales, in economic terms of value, and for 31.4% in terms of volumes. The United States are the second best importer, as they account for 18.4%, in terms of value, and for 9.7% in terms of volumes. Third best is Italy, whose imports account for 15.2% of sales, in economic terms, and for 18.6%, in terms of quantity.

Footwear business

Yet, CRV outbreak has been also affecting footwear exports. According to data supplied and made public by Abicalçados, in May footwear exports amounted to 2.7 million pairs of shoes, which reached 23.9 million dollars in terms of value. Therefore, volumes have been dropping by 64.7%, while value went down by 66% compared to May 2019. In the first five months of the year, Brazil exported 39.53 million pairs of shoes: revenues from sales reached 294.9 million dollars. That means, consequently, that volumes of exported shoes have decreased by 22.1%, while earnings have dropped by 28.7% compared to last year.

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