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From 3 To 4, The Government Of Argentina Resolved The Price Of Leather?

2010/6/2 9:25:00 35

The Argentina Tanning Industry Association (CICA) revealed the impact of last year's severe drought and soybean farming instead of cattle grazing on the industry.

2009

Drought severity

It is the most serious in a century.

In order not to starve these animals to death, many ranchers have to increase their slaughter.

At the same time, the considerable profit brought by planting soybeans in the vast South American prairie is also a reason for the decrease in the number of cattle.

Compared with 57 million in 2008, it dropped to 52 million 300 thousand at the beginning of 2010.

This year, beef slaughtering for meat consumption has dropped by about 10% (compared with previous years, an average of 1400/1420 million per year, down to 13 million.

Moreover, the rising demand in the domestic market has forced the retail price of beef in the main sales market to rise by 50%.

2009, the per capita demand for beef is still around 69kg per person, and there are enough products to meet domestic needs, but high prices inhibit public overconsumption.

The reduction in slaughtering also brought a small quantity to the leather industry.

Raw hide

Now

Leatherwear

The price has reached a level that makes tanneries difficult to maintain profit margins.

This is especially appropriate for small operators who deal with about 500 leather products per day, but for larger operators who handle about 4000 pieces per day, the situation is different.

It is clear that the larger tanneries have obvious advantages in single cost.

Footwear and leather goods manufacturers are suffering from the impact of high leather prices, but there are enough domestic demand to promote the smooth operation of leather industry.

According to the Argentina tanning Association (CICA), the main demand is from Asia, mainly China.

The fact that Hongkong's Asia Pacific Leather Exhibition, APLFMM&T, and the demand for China's all leather show (ACLE) in Shanghai in 2010 are increasing.

The Argentina Leather Industry Association (CICA) estimated that it would take about 3 to 4 years to restore the number of cattle in Argentina and to solve the current price of meat and leather.