Raw material concerns for Colombia

10/02/2011
Colombia’s footwear and leather industry association, Acicam, has warned that footwear and leathergoods manufacturers across the country are facing serious raw materials shortages.

Acicam president, Luis Gustavo Flórez, has blamed the situation on an increase in the export of Colombian hides, mostly raw, to China. In 2010, hide exports to China increased by 44%, Mr Flórez said.

Lack of supply in the domestic market pushed hide prices in Colombia up by 17% by the end of 2010.

“We are extremely worried about the situation because the tanning sector in Columbia is a very important industry,” the Acicam president said. “Nevertheless, we are finding ourselves unable to export products with higher added value. These days, hides are coming out of the abattoirs, being salted and being sent outside the country. To make matters worse, it’s Chinese finished product manufacturers who are exporting shoes and leathergoods back to Colombia from China, by which time the value of the hide we sent them will have multiplied by 12.”

Mr Flórez said countries like Brazil and Argentina had measures in place, including export taxes on raw hides, to prevent this kind of situation from developing. “We on the other hand are the champions of free trade,” he said, and promised that Acicam would approach Colombia’s ministry of commerce and industry for help.