Brazil, one of the largest leather producers in the world, has been exporting to over 80 countries. Taking part in the most prestigious international trade shows, such as Le Cuir A Paris, the tanning industry tripled the value of its exports in recent years. Among the highlights, companies are focusing on customisation and in exotic raw material production, such as the Amazonian pirarucu fish.

More than 700 companies connected to the leather sector have much to celebrate. The technological development combined with the segment efforts managed to raise exports from US$ 700 million in 2000 to 2,079 billion in 2012.

Brazil is among the largest producers in the world and the leather sector employs over 50 thousand workers. Among the facts that enable the country to become a reference are the tanneries participation in the most renowned international fairs, such as the Le Cuir A Paris, last edition (12th – 14th February), APLF (25th – 27th March) in Hong Kong and ACLE in Shanghai next September. The Brazilian trade show Fimec (International Fair for Leather, Chemical Products, Components, Machines, and Equipment for Footwear and Tanneries) (March 12th – 15th) in Novo Hamburgo (Rio Grande do Sul State) and Inspiramais – Exhibition of Design and Innovation in Sao Paulo are also very important events in the leather calendar.

"Brazil has one of the greatest commercial cattle herds in the whole world. Currently, we produce around 40 million hides per year and about 7 million goat skins (annually), in addition to special leather such as fish, frog, snake and alligator, says Fernando Bello, CICB’s (Centre for the Brazilian Tanning Industry) executive chairman.

2012’s hides and skins sales exceed the value achieved in 2011. The industry reached US$ 2.071 billion in leather – up 1.6% compared to 2011 that reached US$ 2.043 billion. Leather was one of the few national products that have achieved a surplus in the trade balance. According to CICB, for 2013, the exports of hides is expected an increase from 3 to 5%.

"We export to over 80 countries, and China, Italy, and United States are the main consumers”, says Bello. According to him, the country is internationally recognised by its quality production, along with other factors. "Through the right ecologic procedures, we add quality to the production. Companies meet their contracts deadlines and follow international fashion trends. Tanneries have been working on a series of improvements to develop industrial and working requirements” – he emphasises.

CICB says that the increase of exports in the last decade is due to the Brazilian Leather Program efforts, an initiative from CICB and Apex-Brasil (Brazilian Trade and Investment Promotion Agency) to promote the leather sector internationally. The project organises the Brazilian tanneries’ participation in the most renowned international trade shows focusing in promoting their image through specialised media while performing research to maintain the sector close to the world market tendencies.

For this year, the entity plans to expand this sort of activity. "We will increase business delegations to countries considered promising for leather business markets, according to our strategic plan. We are also creating the Brazilian sustainability certification for the leather’s sector and we have already started a national educational campaign to disseminate the “Leather Law”, which prohibits the use of “leather products” term in items made by synthetic or eco leather.

Brazilian Leather was recently represented in the February edition of the acclaimed international leather industry trade show, Le Cuir A Paris by the tanneries Berlonzi, Best Brasil and Nova Kaeru.

Based in Novo Hamburgo, Rio Grande do Sul state, Berlonzi – Leather art and design, took part in its 14th Parisian trade show. “I have been working with leather for the past 32 years and 16 years ago I started creating a different line, with hand-made painting and cuts technique, customising bovine and goat leather’s pieces. People considered that insanity, however entrepreneurs from that time appreciated the work. Today we make business with the most renowned brands in the world”, says Claudemir Lorenzi, Berlonzi’s owner.

Special Leather

Nova Kaeru, based in Três Rios city in Rio de Janeiro state, also attended the Le Cuir show. They are specialised in special leather: ostriches, alligators, snakes and fishes such as the Amazonian Pirarucu. The company’s international executive Roberto Luis Kurrels, says that exports began in 2005 and now accounts for 40% of the sales. He highlights important clients in the luxury segment. "We are in the Louis Vuitton 2013’s calendar and we also sell to other important fashion labels”, he says.

Kurrels emphasises that the sustainable production process concern is part of the company’s mission. "Sustainability, technology and innovation are part of our corporate values”. Almost 100% of our skins are by-products of the food industry, (the exception is the piton - raw material imported from Indonesia). The pirarucu fish is one of the portfolio highlights. The tanner also developed an innovative leather welding technique that allows them to create seamless panels for small skins.

Pioneerism

The executive says that the company is a pioneer in the production of pirarucu and pescada’s leather, and is one of the few companies in the world to work with this kind of material. The production involving two more types of fish, from the Amazon and Mato Grosso state, is already being tested.

"Business is growing fast and facing the same challenges as any other industry: raw material availability, buying process: purchasing and delivery procedures, get the cash flow, available stock being the company’s capital and so on. Though, if tomorrow the Chinese starts this kind of business, they should be able to do something strong and then, we will have problems with the Brazil cost and the fact that Brazilian real currency is valued, reduces our competitiveness internationally.

Fernando Bello from CICB explains that the Brazilian leather world consumption is divided in segments: about 50% is directed to the footwear industry, then, it comes the automotive industry (upholstery), followed by the design, clothing, artefacts, and industrial safety products. In the local market the footwear consumption is approximately 20%. "Unfortunately, synthetic material use is very high internally. Consumers are tricked very often with synthetic and eco-leather’s labels. These terms are banned and do not exist. Leather is leather and that’s it", he concludes.