Leather: export continues falling down

Semifinished and Finished already represent 2/3 of the total
2008 goal re-adjusted downwards: US$ 2 billion

The external leather market continues depressed. Until July, the export of the four main types of bovine leather presents a fall of 23.33%, as can be seen on table 1. It was 15.3 million of leather exported from January to July, 2008, against 20.0 million in the same period of 2007. The most expressive fall occurs in Salty (less 49.8%) and Wet Blue (less 47.4%) leather. Only Crust (Semifinished) leather presents a positive variation (more 5.3%), whereas Finished leather presents a fall (less 2.8%).

Tabela 1 - Exportação de Couros Por Nº de Couros Janeiro a Julho - 2008 x 2007 Table 1 - Leather Exporation / By Nº of Hides January to July  – 2008 x 2007
Tipo de Couro Kind of leather	Jan/Jul 2008	Jan/Jul 2007	2008/2007 (%)
Salgado / Salted	37.486	38.683	-3,09%
Wet-Blue	5.273.174	9.892.864	-46,70%
Crust	2.976.325	2.826.302	5,31%
Acabado / Finished	7.080.049	7.284.199	-2,80%
Sub-Total	15.367.034	20.042.048	-23,33%
Solas / Soles	270.409	256.117	5,58%
Ovinos / Sheep	377.310	356.037	5,97%
Caprinos / Goats	42.851	143.927	-70,23%
Total Geral	16.057.604	20.798.129	-22,79%

Fonte/ Source: SECEX – Organização/ Organization: COUROBUSINESS

 

The behavior of the quantitative export reflects itself on table 2, where one finds the data of export by value, which presents a fall of 5.3% in the total of the four types, with the expressive fall of almost 40% in the export of Wet Blue. Crust and Finished present positive variation. Until July, the total value of export of bovine leather gets to US$ 1.202 billion, being that the total export of chapter 41 of NCM reaches US$ 1.217 billion (table 5). The goal for 2008 was re-adjusted downwards, for it will be situated around US$ 2 billion.

What could be celebrated by virtue of the elevation of export of the leather of greater added value also generates a relevant concern, which is the internal environmental effect resulting from the smallest export of Wet Blue leather. Among the analyses to identify reasons for the fall in the export of Wet Blue, one goes in search of answers in the environmental field. For some, the buying countries start reducing their purchases of Wet Blue to get rid of the environmental problems resulting from its transformation. One still does not know the dimension of this hypothesis, but apparently it is not despicable. Real market reasons and effects of economic policies the reader can find in the analysis of Wolfgang Goerlich in the Scheduled Appointment section.

 

Tabela 2 - Exportação de Couros/ Por Valor - US$ 1,00 Janeiro a Julho– 2008 x 2007 Table 2 - Leather Exportation/ By Value – US$ 1.00 January to July  – 2008 x 2007
Tipo de Couro Kind of leather	Jan/Jul 2008	Jan/Jul 2007	2008/2007 (%)
Salgado / Salted	1.190.911	525.538	126,61%
Wet-Blue	271.141.348	451.652.312	-39,37%
Crust	235.215.027	211.179.432	11,38%
Acabado / Finished	695.259.006	605.003.578	14,92%
Sub-Total	1.202.806.292	1.268.360.860	-5,17%
Solas /Soles	12.012.131	10.382.943	15,69%
Ovinos / Sheep	6.426.309	7.194.863	-10,68%
Caprinos / Goats	1.228.584	846.401	45,15%
Total Geral	1.222.473.316	1.286.785.067	-5,00%

Fonte/ Source: SECEX – Organização/ Organization: COUROBUSINESS

 

On table 3, one finds the data related to the behavior of the average value of the exported leather. Highlight for the growth of the average value of Finished leather (more 18.23%), reaching US$ 98.20 per unit. The average value of Wet Blue (12.63%) and of Crust (5.77%) also grew.

Finished leather was sold on the average at US$ 98.20; Crust at US$ 79,03; and Wet Blue leather at US$ 51.42. The comparison between these three values, which indicate the price per unit of leather, is more adequate than the comparison that has been used to justify the taxation of Wet Blue. Studies taken to the government by the defenders of taxation deceive, for they present the value according to the kilo of each leather. It deals with a comparison that induces to error those who know little about the matter, once one does not compare the weight units of both leathers. In the case above, it is clear that a Finished leather is worth around 1.9 times Wet Blue leather, a natural result by virtue of the value addition differential. If the comparison is made in kilos sold, instead of 1.9 times, the relation overcomes 5 times. It deals, evidently, with an incorrect way of comparing, but which was important to deceive the government to the extent of maintaining the taxation on Wet Blue. 

 

Tabela 3 - Exportação de Couros / Valor médio exportado Janeiro a Julho - 2008 x 2007 Table 3 - Leather Exportation / Average exporting value January to July  – 2008 x 2007
Tipo de Couro Kind of leather	Jan/Jul 2008	Jan/Jul 2007	2008/2007 (%)
Salgado / Salted	31,77	13,59	133,84%
Wet-Blue	51,42	45,65	12,63%
Crust	79,03	74,72	5,77%
Acabado / Finished	98,20	83,06	18,23%
Sub-Total	78,27	63,28	23,68%
Solas / Soles	44,42	40,54	9,58%
Ovinos / Sheep	17,03	20,21	-15,72%
Caprinos / Goats	28,67	5,88	387,54%
Total Geral	168,40	129,91	29,62%

Fonte/ Source: SECEX – Organização/ Organization: COUROBUSINESS

 

On table 4, finally, one finds the data related to the participation of each type of bovine leather in the Brazilian export. The leathers of greater added value – Crust and Finished – consolidate themselves in the leadership (65.44% of the total), inverting the historic curve of their presences in the Brazilian export. Wet Blue, which alone has already represented 70% of the total, has its participation reduced to 34.31%. Will this trend consolidate itself?

 

 

Tabela 4 - Participação % na quantidade exportada Janeiro a Julho (2008 e 2007) Table 4 - % participation in  quantity exported January to July  (2008 and 2007)
Tipo de couro Kind of leather	Jan/Jul 2008	Jan/Jul 2007
Salgado / Salted	0,24%	0,19%
Wet Blue	34,31%	49,36%
Crust	19,37%	14,10%
Acabado / Finished	46,07%	36,34%
Total Geral	100,00%	100,00%

Fonte/ Source: SECEX – Organização/ Organization: COUROBUSINESS

 

A final comment concerning table 6, which shows the fate of the Brazilian leather export, is reduced to the verification that the concentration is growing. Italy, China, Hong Kong, USA, Vietnam, Indonesia, Mexico, Germany, Japan and The Low Countries are responsible for 83.67% of the export in value and 87.18% of the export in quantity. And APEXBrasil continues stimulating the concentration, on subsidizing the Brazilian participation in fairs located in these markets.

 

Tabela 5 - EXPORTAÇÃO BRASILEIRA DE COUROS E PELES (CAP. 41) – Jan/Jul de 2008/07 Table 5 - BRAZILIAN EXPORTS OF HIDES AND SKINS (CHAP 41) – Jan/Jul 2008/07
SIT. MONETÁRIOS (US$) VALUE (US$)			CRESC. (%) GROWTH (%)			SIT. FÍSICA (Kg) QUANTITY (KG)		CRESC. (%) GROWTH (%)
MÊS MONTH	ANO 2008	ANO 2007	VAR08	MÊS	ACUM.	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM.
Jan	183.489.682	176.601.526	-4%	4%	4%	30.342.136	35.168.257	-1%	-14%	-14%
Fev Feb	176.804.322	173.816.556	-4%	2%	3%	25.959.935	36.108.598	-14%	-28%	-21%
Mar	172.353.551	202.027.031	-3%	-15%	-4%	25.810.531	40.461.803	-1%	-36%	-27%
Abr Apr	183.046.397	187.924.209	6%	-3%	-3%	28.214.246	37.467.812	9%	-25%	-26%
Mai May	182.136.134	199.336.950	0%	-9%	-4%	29.066.775	36.296.626	3%	-20%	-25%
Jun	177.363.246	180.358.178	-3%	-2%	-4%	26.521.200	31.653.808	-9%	-16%	-24%
Jul	142.436.390	161.763.498	-20%	-12%	-5%	20.919.289	26.972.653	-21%	-22%	-23%
Total	1.217.629.722	1.281.827.948				186.834.112	244.129.557

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

 

Tabela 6 - DESTINO DAS EXPORTAÇÕES DE COUROS E PELES POR PAÍSES (CAP.41) 2008/07   -   BRASIL Table 6 – DESTINATION OF HIDES AND SKINS EXPORTS BY COUNTRIES (CHAP 41)
PAÍSES COUNTRIES	SIT.MONET. (US$) VALUE		PERCENTUAL PERCENTAGE		SIT.FÍSICA (Kg) QUANTITY		PERCENTUAL PERCENTAGE
	Jan/Jul 08	Jan/Jul 07	PART08	CR.07/08 GROWTH	Jan/Jul 08	Jan/Jul 07	PART08	CR.07/08 GROWTH
ITALIA	313.019.058	344.768.557	25,71%	-9%	45.324.927	62.583.018	24,26%	-28%
CHINA	247.428.098	303.333.825	20,32%	-18%	70.114.792	89.316.014	37,53%	-21%
HONG KONG	139.656.783	143.666.040	11,47%	-3%	22.499.281	32.216.264	12,04%	-30%
ESTADOS UNIDOS	116.668.296	135.057.161	9,58%	-14%	5.993.027	8.786.525	3,21%	-32%
VIETNA	64.071.165	29.708.744	5,26%	116%	9.386.081	6.338.977	5,02%	48%
INDONESIA	43.644.644	38.139.380	3,58%	14%	2.985.198	2.562.635	1,60%	16%
MEXICO	28.445.444	22.838.850	2,34%	25%	2.306.006	3.343.833	1,23%	-31%
ALEMANHA	24.878.273	17.006.431	2,04%	46%	2.059.680	1.973.566	1,10%	4%
JAPAO	20.700.226	14.098.282	1,70%	47%	2.225.539	2.038.574	1,19%	9%
PAISES BAIXOS (HOLANDA)	20.308.985	21.638.504	1,67%	-6%	1.665.908	2.352.594	0,89%	-29%
SUB-TOTAL	1.018.820.972	1.070.255.774			164.560.439	211.512.000
Demais Países Other countries	198.808.750	211.572.174			22.273.673	32.617.557
TOTAL	1.217.629.722	1.281.827.948			186.834.112	244.129.557

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

Tabela 7 - EXPORTAÇÕES BRASILEIRAS DE COUROS POR CLASSIFICAÇÃO DAS NCMs Jan / Jul 2008 Table 7 - BRAZILIAN LEATHER EXPORTATION BY NCM CLASSIFICATION January to July 2008
CLASSIFICAÇÃO DAS NCMs NCM CLASSIFICATION	PESO LIQ.  (KG) WEIGHT	PART (%)	US$ FOB	PART (%)	Nº DE COUROS Nº OF HIDES	PREÇO MÉDIO AVERAGE PRICE
						P/ COURO BY LEATHER	P/ KG BY KILO
1. Couros Bovinos Salgado Leve (med. 8Kg) Light Salty Bovine Hides (med.8Kg)	18.450	0,01%	34.356	0,00%	2.306	14,90	1,86
2. Couros Bovinos Salgado Pesado (med. 25Kg) Heavy Salty Bovine Hides (med.25Kg)	879.493	0,47%	1.156.555	0,09%	35.180	32,88	1,32
3. Couros Bovinos Wet Blue Pequenos (méd.7Kg) Small Wet Blue Bovine Hides (med. 7Kg)	5.398.882	2,89%	17.357.473	1,43%	771.269	22,51	3,22
4. Couros Bovinos Wet Blue (med. 15Kg) Wet Blue Bovine Hides (med. 15Kg)	67.528.571	36,14%	226.439.415	18,60%	4.501.905	50,30	3,35
5. Raspa Wet Blue / Wet Blue Scraping	46.764.216	25,03%	27.344.460	2,25%	-	-	0,58
6. Couros Bovinos Sola (med. 7Kg) Sole Bovine Hides (med. 7Kg)	1.892.866	1,01%	12.012.131	0,99%	270.409	44,42	6,35
7. Couros Bovinos Semi-Acabado (med. 5,5Kg) Semi-Trimmed Bovine Hides (med. 5,5Kg)	14.882.533	7,97%	223.202.896	18,33%	2.705.915	82,49	15,00
8. Couros Bovinos Acabados (med. 5,5 Kg) Trimmed Bovine Hides (med. 5,5Kg)	38.940.272	20,84%	695.259.006	57,10%	7.080.049	98,20	17,85
Sub-Total - Couros Bovinos Subtotal - Bovine Hides	176.305.283	94,36%	1.202.806.292	98,78%	15.367.034	78,27	6,82
Demais Couros / Other Hides
Peles de Equídeos / Equidae Hides	0.000	0,00%	0.000	0,00%
Peles de Ovinos / Ovine Hides	377.310	0,20%	6.426.309	0,53%
Peles de Caprinos / Caprine Hides	42.851	0,02%	1.228.584	0,10%
Peles de Suínos / Swine Hides	13.966	0,01%	188.233	0,02%
Peles de Répteis / Reptile Hides	0.139	0,00%	33.146	0,00%
Peles de outros animais / Other animals hides	1.385	0,00%	66.182	0,01%
Aparas e couro reconstituído Chippings and reconstructed leather	10.093.178	5,40%	6.880.976	0,57%
Sub-Total - Demais Couros Subtotal - Other Hides	10.528.829	5,64%	14.823.430	1,22%
TOTAL DO CAP. 41 – COUROS	186.834.112	100,00%	1.217.629.722	100,00%

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

Tabela 8 - EXPORTAÇÃO BRASILEIRA DE COUROS BOVINOS Table 8 - BRAZILIAN EXPORTATION OF BOVINE HIDES
MÊS MONTH	NÚMERO DE COUROS NUMBER OF HIDES		CRESC. (%) GROWTH			VALOR (US$) VALUE		CRESC. (%) GROWTH
	ANO 2008	ANO 2007	VAR 08	MÊS MONTH	ACUM ACCUM	ANO 2008	ANO 2007	VAR 08	MÊS MONTH	ACUM ACCUM
Jan	2.384.938	3.036.108	-6%	-21%	-21%	181.668.983	175.553.082	-4%	3%	3%
Fev Feb	2.234.329	2.993.587	-6%	-25%	-23%	174.429.211	172.329.622	-4%	1%	2%
Mar	2.165.907	3.300.359	-3%	-34%	-27%	170.917.786	200.558.912	-2%	-15%	-4%
Abr Apr	2.373.028	2.950.014	10%	-20%	-25%	181.142.976	185.239.189	6%	-2%	-3%
Mai May	2.244.946	2.893.281	-5%	-22%	-25%	179.320.585	196.592.320	-1%	-9%	-5%
Jun	2.209.990	2.608.330	-2%	-15%	-23%	175.155.644	178.178.987	-2%	-2%	-4%
Jul	1.753.895	2.260.370	-21%	-22%	-23%	140.171.107	159.908.748	-20%	-12%	-5%
Total	15.367.033	20.042.049				1.202.806.292	1.268.360.860

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

Tabela 9 - EXPORTAÇÃO BRASILEIRA DE COUROS BOVINOS SALGADOS Table 9 - BRAZILIAN EXPORTATION OF SALTED BOVINE LEATHER
	FÍSICOS (Nº COUROS) QUANTITY (Nº OF HIDES)		CRESC. (%) GROWTH(%)			MONETÁRIOS (US$) VALUE (US$)		CRESC. (%) GROWTH
MÊS MONTH	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM.	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM
Jan	1.130	1.788	-79%	-37%	-37%	8.960	28.740	-81%	-69%	-69%
Fev Feb	4.407	7.855	290%	-44%	-43%	41.881	133.367	367%	-69%	-69%
Mar	0.000	10.575	-100%	-100%	-73%	0.000	105.446	-100%	-100%	-81%
Abr Apr	1.906	4.801	-	-60%	-70%	9.883	60.192	-	-84%	-81%
Mai May	9.284	8.306	387%	12%	-50%	324.816	126.926	3187%	156%	-15%
Jun	11.919	1.920	28%	521%	-19%	470.592	23.608	45%	1893%	79%
Jul	8.840	3.438	-26%	157%	-3%	334.779	47.259	-29%	608%	127%
Total	37.486	38.683				1.190.911	525.538

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

Tabela 10 - EXPORTAÇÃO BRASILEIRA DE COUROS BOVINOS WET BLUE Table 10 - BRAZILIAN EXPORTATION OF WET BLUE BOVINE HIDES
	FÍSICOS (Nº COUROS) QUANTITY (Nº OF HIDES)		CRESC. (%) GROWTH			MONETÁRIOS (US$) VALUE (US$)		CRESC. (%) GROWTH (%)
MÊS MONTH	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM.	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM
Jan	939.134	1.614.415	-4%	-42%	-42%	47.911.237	65.437.451	-1%	-27%	-27%
Fev Feb	742.670	1.614.858	-21%	-54%	-48%	38.914.940	67.603.124	-19%	-42%	-35%
Mar	733.829	1.611.560	-1%	-54%	-50%	37.605.987	71.413.791	-3%	-47%	-39%
Abr Apr	814.805	1.489.569	11%	-45%	-49%	40.724.900	69.947.176	8%	-42%	-40%
Mai May	812.675	1.371.313	0%	-41%	-48%	43.028.915	69.781.121	6%	-38%	-40%
Jun	699.309	1.228.237	-14%	-43%	-47%	35.720.997	61.129.023	-17%	-42%	-40%
Jul	530.752	962.910	-24%	-45%	-47%	27.234.372	46.340.626	-24%	-41%	-40%
Total	5.273.174	9.892.862				271.141.348	451.652.312

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

 

Tabela 11 - EXPORTAÇÃO BRASILEIRA DE COUROS BOVINOS CRUST+VEGETAIS Table 11 - BRAZILIAN EXPORTATION OF CRUST AND VEGETABLE
	FÍSICOS (Nº COUROS) QUANTITY (Nº OF HIDES)		CRESC. (%) GROWTH (%)			MONETÁRIOS (US$) VALUE (US$)		CRESC. (%) GROWTH (%)
MÊS MONTH	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM.	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM
Jan	493.861	373.632	5%	32%	32%	39.474.898	26.293.268	4%	50%	50%
Fev Feb	456.310	378.913	-8%	20%	26%	36.934.054	27.374.763	-6%	35%	42%
Mar	431.498	478.474	-5%	-10%	12%	34.825.658	34.280.775	-6%	2%	26%
Abr Apr	467.808	436.788	8%	7%	11%	34.839.371	31.463.801	0%	11%	22%
Mai May	415.309	437.666	-11%	-5%	8%	33.568.312	34.044.410	-4%	-1%	17%
Jun	414.577	369.094	0%	12%	8%	31.499.277	28.690.914	-6%	10%	16%
Jul	296.962	351.735	-28%	-16%	5%	24.073.457	29.031.501	-24%	-17%	11%
Total	2.976.325	2.826.302				235.215.027	211.179.432

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

Tabela 12 - EXPORTAÇÃO BRASILEIRA DE COUROS BOVINOS ACABADOS Table 12 - BRAZILIAN EXPORTATION OF FINISHED BOVINE LEATHER
	FÍSICOS (Nº COUROS) QUANTITY (Nº HIDES)		CRESC. (%) GROWTH (%)			MONETÁRIOS (US$) VALUE (US $)		CRESC. (%) GROWTH (%)
MÊS MONTH	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM.	ANO 2008	ANO 2007	VAR08	MÊS MONTH	ACUM. ACCUM
Jan	950.813	1.046.272	-13%	-9%	-9%	94.273.888	83.793.623	-7%	13%	13%
Fev Feb	1.030.942	991.962	8%	4%	-3%	98.538.336	77.218.368	5%	28%	20%
Mar	1.000.580	1.199.750	-3%	-17%	-8%	98.486.141	94.758.900	0%	4%	14%
Abr Apr	1.088.509	1.018.856	9%	7%	-4%	105.568.822	83.768.020	7%	26%	17%
Mai May	1.007.678	1.075.995	-7%	-6%	-5%	102.398.542	92.639.863	-3%	11%	16%
Jun	1.084.186	1.009.078	8%	7%	-3%	107.464.778	88.335.442	5%	22%	17%
Jul	917.341	942.286	-15%	-3%	-3%	88.528.499	84.489.362	-18%	5%	15%
Total	7.080.049	7.284.199				695.259.006	605.003.578

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

Tabela 13 - Exportação pela NCM 42050000 (Obras de couro) Janeiro a Julho 2008 e 2007 Valores em US$ 1,00 Table 13 - Exportation by NCM 42050000(Leathergoods) January to July  2008 and 2007 Values in US$ 1,00
MÊS MONTH	EM VALOR (US$) IN VALUE		CRESC. (%) GROWTH			QUANTIDADE (KG) QUANTITY		CRESC. (%) GROWTH
	ANO 2008	ANO 2007	VAR 08	MÊS MONTH	ACUM ACCUM	ANO 2008	ANO 2007	VAR 08	MÊS MONTH	ACUM.
Jan	5.843.134	6.599.168	-17%	-11%	-11%	1.343.864	1.738.832	-12%	-23%	-23%
Fev Feb	5.525.540	7.225.545	-5%	-24%	-18%	1.353.167	1.893.890	1%	-29%	-26%
Mar	5.805.630	7.118.076	5%	-18%	-18%	1.371.623	1.898.439	1%	-28%	-26%
Abr Apr	6.823.479	7.359.257	18%	-7%	-15%	1.625.065	1.834.699	18%	-11%	-23%
Mai May	6.312.182	7.754.039	-7%	-19%	-16%	1.353.704	1.723.625	-17%	-21%	-22%
Jun	9.645.137	7.414.786	53%	30%	-8%	1.515.772	1.988.833	12%	-24%	-23%
Jul	8.925.368	7.254.386	-7%	23%	-4%	1.396.125	1.911.112	-8%	-27%	-23%
Total	48.880.470	50.725.257				9.959.320	12.989.430

Fonte/ Source: SECEX – Organização/ Organization: AICSul - CICB

 

 

Revista Courobusiness, Ed. 59 Jul/Ago 2008.