A row has broken out in Argentina between packers and tanners over the familiar question of the price of hides.
On this occasion, however, Franco Brunetti, who runs his family’s packer company, has written to the country’s minister of production, Francisco Cabrera, to demand the removal, or at least the lowering, on tariffs of exports of salted hides.
In recent comments, Mr Brunetti said the country’s tanners are holding the meat industry to ransom because steep tariffs on hide exports give them, the tanners, access to abundant, high-quality raw material at prices Mr Brunetti insists are uncompetitive.
“The current regime imposes a tariff equivalent to 35% of the value of salted hides,” he said. “We are being held captive by that.”
Furthermore, Mr Brunetti said that Argentina’s leather manufacturers currently have the capacity to process about 9 million bovine hides per year, while the country’s meat industry is currently slaughtering between 11 million and 12 million head of cattle per year. He then said drought conditions are likely to take the 2018 slaughter figure above 13 million head and insisted millions of hides will go to waste unless the government makes it easier for packers to ship them overseas.
Report courtesy of Leatherbiz