Very little material on the domestic market, especially that from bovines, and prices that are too high. That’s why Argentina’s tanneries asked the government to put a stop to the export of raw material for the tanning industry. Union FATICA recognizes that the synergy existing between the meat industry and tanners went awry during 2020. While slaughterhouses worked at substantial levels to supply the food market, the tanners were forced to slow production down, as demand for finished leather was decreasing. The situation justified the measure that allowed Argentina to create a free market for the material. Yet, FATICA now complaints that the relationship between the livestock industry and tanners is once again balances. That’s why it asks to go back to the previous limitations.
Argentina’s tanneries
Argentina exported 4.2 million pieces of raw hides in 2020, or about 25% of the total production. “These allowed slaughterhouses to breathe – reads the article on Cuero America -, as they found themselves with full warehouses”. Casa Rosada, in order to unlock the situation, approved a temporary fiscal package that made it more convenient to export raw hides. The problem, according to FATICA, is that the emergency changes are still in place today, while the emergency comes to an end. “The situation that is currently present is very troublesome – they write -, for the entire chain, because it puts thousands of jobs at risk”. In the long term, footwear and leather goods’ manufacturers would also be hurt by it.
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