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Leather sector generates US $1 bn in exports

29 Aug '07

2 min read

The never ending Argentinean pampas are the life blood of this country's exports of cereals, beef and leather. Currently the Argentinean leather and finished goods industries are exporting around US$ 1 billion per year - a figure which is expected to rise in this and coming years as the Argentinean bovine herd shows signs of increasing in number.

Contrary to rumors that the spread of soybean production would cause the size of the Argentine bovine herd to decrease, animal numbers increased to 61.3 million head from 59.88 million one year ago: based on figures of animals vaccinated against foot and mouth disease in 2006. This is the best guide available for the current population of bovine animal numbers even though it may contain some double vaccinations.

The tradition and quality of Argentinean beef and leather is world renown, and since the resolution of the 2001 financial crisis which devalued the local currency, the peso, by 300%, all exports, including leather and finished products, have once again become extremely competitive in the world market.

After President Kirchner's official visit to China in 2004 China has become Argentina's main customer for semi and finished leathers, importing more than US$ 231 million in 2006, almost doubling the US imports of US$ 122 million.

As recently as 2001 it was the other way round, with the US importing double the amount of semi and finished leather compared to China. Another illustration of how the importance of China as the center of the world leather industry has come to the fore in just five short years.

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