Surging Leather Exports Put Uruguay In The Driver’s Seat

Patrick Archer agribusiness, aruba, foreign investment, uruguay

Bentley leather seats

Cuero y Coches: Sales of Uruguay leather seats rose 500% to Brazil and 1,000% to China.

Uruguay leather exports rose to US$263 million in 2012, and 40% of the increase was due to the surge in the sale of leather hides used in the production of seats for luxury automobiles and aircraft.

According to El Pais, Uruguay exported 38,000 tons of leather hides last year, a 12% gain over the 34,000 tons shipped in 2011. Uruguay XXI says the average price per ton for Uruguay leather exported was US$7,235 compared with US$6,921 in 2011, while finished Hereford, Holstein and Aberdeen Angus leather hides were exported at an average price of US$21,300 per ton.

Luxury auto manufacturing mecca Germany currently imports almost one-quarter of all Uruguay leather hides followed closely by Thailand, the United States, China and Mexico.

It’s worth noting that two BRICS accounted for the most dramatic increase in Uruguay leather sales last year: sales to Brazil rose 500% while sales to China surged 1,000%, a trend we saw earlier this week with beef. (See People’s Republic of Carne).

Of the forty Uruguay companies exporting leather hides, El Pais says Zenda Leather with offices in Montevideo and Hickory, North Carolina is number one (27% of exports) followed by Paycueros (26%), Curtiembre Paris (14%), Bader (10%) and Dofin (5%). (Full Story in Spanish)

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