Brazilian leather is in trouble: the case of Franca cluster

Brazilian leather is in trouble: the case of Franca cluster

Brazilian leather is going through tough times. Ivan Júnior de Andrade, President of AMCOA (Associação dos Manufatores de Couros e Afins), has sounded the alarm. In fact, CRV epidemic has supposedly brought to a standstill leather manufacturing based in the district of Franca, situated in the State of São Paulo.

Brazilian leather is in trouble

As reported by gcn.net.br, according to de Andrade a vast majority of factories and tanneries, based in Franca, are currently working three days a week at most and, in addition, have limited the number of their employees. The president of AMCOA claims that, since March to present, “several tanneries are for the most part closed, because of very low volumes of orders”. For the records, tanneries are not the only ones going through tough times. In fact, in May leather goods production got worse compared to April, so much so that leather companies “worked at 20% compared to their expectations”. Looking ahead, de Andrade cannot see any comforting messages. In other words, recovery will start “only when stores can actually reopen and sell their own products”.

At a standstill

Yet, apparently, such problems concern the whole State of São Paulo. According to data provided and made public by SINDICOURO (Sindicato da Indústria do Curtimento de Couros e Peles), exports of raw hides and skins have decreased by 50%. Sales on domestic market have been going even worse, as they slumped by -70%. Nevertheless, the overall situation has not undermined employment a great deal, allegedly. While speaking to gcn.net.br, Jérson Nascimento Júnior, president of the association, pointed out that, following a few layoffs during the health emergency early stages, most tanneries could benefit from some income support measures, therefore only reducing shifts duration.

The first to stop and the last to start again

“Since it supplies a non-essential product, the leather industry is generally the first business to stop and the last one to start again – remarked Nascimento Júnior –. In the past, we had to deal with a few economic crisis and we successfully managed to recover. Since we are now facing a health emergency, we believe that, once work activities go back to normal and buyers feel safe again, sales will pick up likewise. We hope that recovery will take place little by little, starting from July”.

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