Reports provided by the Chamber of the Footwear Industry of Cordoba (CICC) and the Argentina Federation of the Footwear Industry Associations (Faica) indicate increases in the cost of Argentine leather ranging from 25% to, in some cases, 40 %.
According to Michael Hames, president of both entities they have been two factors that have led to a rise in the price of Argentine leather: the increase in the price of the official dollar and the decline in export duties on raw materials for certain sectors included leather.
Currently suppliers have dollarized costs and price lists vary depending on the value of the dollar to the final moments of turnover. In this way, the value chain increases the final cost of the product and if the leather increase, so will the price of shoes causing a decline in footwear sales.
The Cordoba entrepreneur has also spoken about the occupation noting that if companies can continue the pace of manufacturing layoffs or suspensions not be recorded in the sector.