Question (Q):
I’m here with the Brazilian representative, Mr. Rogério de Sousa Cunha. I’d like to ask you, Brazil has a significant presence here, over 30 years. What’s your opinion on the fair now, on the second day?

Rogério de Sousa Cunha (RC):
Very well. Brazil has been participating in the APLF fair for over 30 years, and we’ve always had a strong presence. APLF is still the main fair in the sector, as we see it. It’s a very international fair, not only with participants from Asia, especially China, but also from other Southeast Asian countries, Europe, and even the Americas. So, it’s extremely important, and it’s highly sought after. I believe this edition, from what we’ve seen on the first day and this morning, the second day, has had the largest turnout and the most activity since the pandemic, compared to other sector fairs. We participate in over 10 international fairs each year.

Q:
And the market?

RC:
Asia is an extremely important market for our sector. In Brazil, we export over 40% of our volume to Asia. Of that, most goes to China, 15% to Vietnam, and around 5-7% goes to other Asian countries like Indonesia, India, and others in the region. So, Asia is our biggest market – we export a lot there. Of the main markets we have, such as the United States, Italy, and Vietnam, China is by far the largest.

But if you look at the countries in Asia together, it’s our biggest market in both volume and value. Although, in terms of average price, exports to Asia are generally at a lower price point compared to Europe or the United States. But, overall, Asia is our largest market in terms of volume exported from Brazil.

Q:
Is the price of leather good right now, according to your criteria? I’ve heard that leather prices are okay, but the cost of chemical inputs is very high.

RC:
No, the price of leather isn’t good. If we look historically, for example, in Brazil, we’re dealing with prices around $17 per kilogram of raw hide, and we’re selling wet blue leather at some of the lowest prices in history. Right now, it’s about 65 US cents per square foot, which is extremely low. If you look back, these are probably among the lowest prices the sector has faced. What has helped, of course, is that Brazil has had a couple of years with more stability in the raw material prices. Looking at last year’s raw material prices, they remained stable, as they did the year before. This stability has allowed tanners to adjust and stabilise their companies, helping them to stay in the market and continue exporting.

On top of that, there’s been a currency fluctuation in Brazil that has helped exports. Although, of course, when it benefits exports, it makes imports of chemicals and other inputs more expensive. Still, in general, it’s been a positive factor for exports. The prices, however, are still very low.

They haven’t recovered, and we’re hoping that, with some geopolitical adjustments, such as the end of the conflict in Eastern Europe and other issues that are affecting consumption in Europe and the United States, these adjustments will start to support consumption. This would bring consumers back into the market for leather products, such as footwear, bags, accessories, and even cars, which use leather for their seats. We do believe there will be an improvement, and we’re already seeing signs that this could happen over the course of this year. This is what the Brazilian leather industry is hoping for.

Q:
From what I know, Brazil’s leather sector works together as a unit and attends all the major fairs with a strong presence. Brazil’s marketing is excellent. Do you agree with that?

RC:
We have an organised leather industry in Brazil. The CICB, which is the entity that represents the sector – the one I’m speaking for today – has been around for over 65 years. It was founded in 1957 in Brazil, specifically to help the sector organise itself. This organisation, which in the 1980s started focusing more on the international market, was essential as Brazil’s footwear and other leather manufacturing industries began to decline and moved to Asia, particularly to countries like Vietnam and China. Brazil had to learn to export, and for that, it needed to get organised. We also have the support of the government through APEX (Export Promotion & Investment Agency – Ed,) which helps us organise international events and support international promotion.

So, we have support from APEX in this regard. It helps ensure that not only the leather sector but over 50 other different industrial sectors in Brazil can organise and represent themselves – such as footwear, testing, furniture, and others.

Q:
I really appreciate the time you’ve given me today. And it’s safe to assume that you’ll be at the Hong Kong fair again in 2026.

RC:
Absolutely! Definitely! It’s going to be an important presence. We even hope to increase the space we’ll occupy in Hong Kong. It’s one of our key international events. APLF is a very strong partner, especially when it comes to brands. It’s a massive partnership, and we’ve been taking part in APLF for a long time now. We even participated in both editions in Dubai, which took place during the pandemic. It wasn’t as strong a presence as it is here today, but it was important, particularly as everyone was keen to return to in-person events. But we’ll certainly be back next year.

Q:
That’s exactly what I noticed – the first day and this morning.

RC:
Yes, today the turnout has been very significant. I believe it’s the largest turnout we’ve had, and not just in terms of numbers, but also in terms of quality. We’ve had a qualified audience visiting the Brazilian exhibitors here. We’re hoping to increase exports to China with these events that we’re organising for Brazilian companies.

Q:
Thank you for this interesting and in depth interview.