The leather co-op that sustains the economy of a depressed town

The leather co-op that sustains the economy of a depressed town

The leather co-op that in less than thirty years has grown to underpin the economy of Ribeira. That is, the small town in the state of Paraíba, one of the most depressed areas of Brazil where “full employment” is a mirage. The story of Arteza is one that leather opponents should read: founded by a Dutch parish priest in 1998 and came to be an industrial structure that covers the entire supply chain, from the tanning of raw materials to the production of accessories.

The leather co-op

Among the 1,700 residents of Ribeira, reads the IPS report, one in five is directly or indirectly involved in Arteza’s activities. And this has enabled the town not only to avoid the depopulation phenomena affecting other towns in the region, but also to grow in terms of urban development: there is now, for example, a petrol station and a pharmacy. All thanks to the development of the activities of the coop, whose tannery started with a production capacity of 800 leather per month, and has now reached the current 20,000. A turning point, say the promoters, was the installation of the photovoltaic system in 2018, which allowed a saving in energy expenditure (from R$ 10,000 to R$ 600 per month) reinvested in the purchase of machinery.

Fashion push

Arteza started with the production of traditional local handicrafts. Some of the cooperators continue to produce them, but many have indulged in the fashion demand in order to conquer the market. Now, footwear (primarily sandals) accounts for 60 per cent of sales, while the share of bags and backpacks is significant (a segment where the highest prices are up to USD 150). Arteza distributes its products in Ribeira’s shop and in shops throughout Brazil. In 2021, after the shock of the pandemic and the lockdown, it introduced the digital channel and opened social accounts: e-commerce is now worth 35 per cent of revenues.

Photos from Instagram

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