The Brazilian leather supply chain has also been tremendously impacted by the effects of the Covid-19 pandemic. According to data released by CICB, the South American tanning association, in June Brazil exported raw, semi-finished and finished hides for a value of 48.3 million Us dollars compared to 91.3 million Us dollars in 2019. In terms of volume, the drop in exports was 36.9%.
Considering the first six months of 2020, Brazil exported 77.8 million square metres of leather compared to over 94.7 million Us dollars in the previous year (-17.9%). Overall, first half year sales generated 450.3 million Us dollars in revenue, that is 28.8% less than 2019.
As for destinations, in the first five months of 2020 the first three Brazilian raw outlet markets lost both in terms of value and volume: China (-23.6% in value), United States (-15.5%) and Italy (-37.4%).
Even downstream of the tannery, the Coronavirus epidemic has had serious repercussions. The exports of green-gold footwear in the month of May were equal to 2.7 million pairs (-64.7%) for a value of 23.9 million Us dollars (-66%). In the first five months of the year, Brazil exported 39.5 million pairs (-22.1%) for a value of almost 295 million Us dollars, equal to a decrease of 28.7%.
Despite the serious losses of the first part of the year, the Brazilian tanning industry declares itself ready to recover its market shares and reiterates its desire to continue to follow the path of sustainability which in recent years has become the polar star of the research and innovation in the sector, in the awareness that only an increasingly virtuous path can give the answers that the international market is asking for today. We recall that for years the yellow-gold tanning has given itself a specific certification, the Brazilian Leather Certification of Sustainability (CSCB), which includes a wide range of indicators that verify all aspects of environmental compliance also ensuring that the animals do not come from farms located in deforestation areas and do not use slave labour.
With 244 tanneries, 2,800 industries producing leather components and footwear and 120 factories of machinery and equipment, the Brazilian leather supply chain offers 30,000 direct jobs and generates a turnover of around 2 billion Us dollars a year.