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Argentina – Processing for stock

Published: 15 May, 2020

Even before Covid 19 took hold of the world, the Argentinian hide industry was in a poor shape, prices had been falling to a level where many were not economic to process. The last official prices published for salted hides was on March 20; after this time there has been no further update, presumably because without a final sale for the hides who can put a price on them. As is the practise in most countries, tanneries are deemed to be essential industries and are therefore allowed to continue working. Some are just salting hides down to cure them, while other tanneries are processing to a wet-blue stage. Production is reported to be about half the normal levels, with many reporting to only have half their workforce due to complying with quarantine regulations. Tanneries who process to the finished leather stage are just stocking material, as their major markets in Mexico, Europe and the U.S. are not buying leather or leather goods due to their own restrictions. Only those tanneries that have orders from China continue to process, but are under price pressure all the time. The latest news is that there are reported to now be problems obtaining salt, leaving presumably the only option to process hides fresh if possible or to send to landfill. To read more click here.

Currently Cadif (Argentine Chamber of the Refrigeration Industry) have asked the federal government to guarantee the supply of salt and to allow the export of hides free of export duty. Also a draft resolution for executive powers has been applied for, this is to suspend the sale of hides from slaughterhouses directly for export, so as to try and protect the Argentinian tanning industry. This initiative, which already has parliamentary status but will have to wait for Congress to restart sessions. Congress has not been working for over one month, since the start of the quarantine. To read more click here.

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