São Paulo – The United Arab Emirates are one out of 17 countries regarded as priorities by the Brazilian project for expanding leather exports. The target markets have been selected by the Brazilian Export and Investment Promotion Agency (Apex) and the Confederation of Brazilian Hides and Skins Industries (CICB), which renewed their trade promotion agreement yesterday (5th).
According to the Apex’s project manager, Deborah Rossoni, a market survey should be conducted in the Emirates this year, and later on, the image of Brazilian products will be developed in the local market. According to her, knowledge must be obtained regarding Arab companies, clients, and sales possibilities, in order for a buyer project to be carried out, for instance.
According to data supplied by the CICB, the Brazilian leather export volume to the Emirates is still low. From January until May, sales totalled US$ 28,450, whereas revenues from exports to the whole world totalled US$ 714 million.
To the president of the Apex, Alessandro Teixeira, the sector is one of the most important in Brazil, and is capable of expanding its markets over the next two years, according to a statement issued by the organization. In the year 2000, when the project began, 47 companies used to export. By 2011, the figure is expected to reach 60 companies.
According to the president of the CICB, Wolfgang Goerlich, the agreement with the Apex enabled the annual export volume to go from 14.6 million tonnes to 24 million, representing growth of 164%. The number of importing countries rose from 68 to 90.
The new agreement provides for 6.9 million reals (US$ 3.9 million) in investment. The project is expected to generate U$$ 1.7 billion in exports in 2010, a figure 51% higher than last year’s. In 2011, foreign sales are expected to grow by 10%, with a figure equal to that of 2007, when exports totalled US$ 2.2 billion.
Aside from the Emirates, other countries targeted by the project are Italy, the United States, Vietnam, Indonesia, Mexico, India, Hong Kong, South Korea, China, Croatia, the Czech Republic, Turkey, Belarus, France, Poland and Hungary.
The CICB represents over 800 leather manufacturing and processing companies that employ a total of 45,000 people.
*Translated by Gabriel Pomerancblum
