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Raw Materials - Luiz Bittencourt warns of knock-on effect of low hide prices
30 January 2019

Luiz Bittencourt (L) & Wolfgang Goerhlich at APLF 2009

The former executive director of Brazilian tanning industry association CICB, Luiz Bittencourt, has said that the average price of Brazilian hides has fallen by 50% in the last three years.

Writing an opinion piece in a Brazilian magazine, Mr Bittencourt said the value of Brazilian hides has, historically, fluctuated between 6% and 8% of the value of cattle going to slaughter, although he pointed out that there have been times in the price cycle when that value has increased to 12%. “Today, at most, it’s 2%,” he said.

Mr Bittencourt went on to point out an important consequence of this. He said: “As a knock-on effect of this low return on the hide, packer companies have no incentive for looking after the hide and the repercussions of this are devastating.”

Information courtesy of Leatherbiz