Paraguayan Leather Industry Thrives Despite Global Price Drop

The Paraguayan leather industry has recorded significant growth in its exports during 2024, reaching USD 91,937,022 for 79,906 tons, according to data from the National Service for Quality and Animal Health (Senacsa). This increase represents a 48% rise in income and 51% in volume compared to the previous year, despite a 66% drop in international prices.

The sector faces significant challenges in the global market, as explained by Emilio Bedoya, president of the Paraguayan Leather Chamber. The war between Russia and Ukraine has generated global uncertainty, negatively impacting demand and prices. In addition, environmental pressures have resulted in the closure of important markets such as Italy, traditionally a destination for leather for automotive upholstery and premium products.

The Paraguayan leather industry has faced environmental questions since 2016, which has led to the development of the Socio-Environmental Traceability System of Paraguay. This initiative seeks to guarantee sustainability and transparency in production, adapting to the international standards demanded by global markets. The sector generates more than 3,000 direct jobs in the country, with a production capacity in the main tanneries of between 3,000 and 4,000 hides per day. Exports reach more than 50 international destinations, mainly in Asia and Europe, demonstrating the competitiveness of the Paraguayan product in demanding markets.

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International competition presents additional challenges related to innovation and technology. Paraguayan companies face limitations in access to long-term financing for investments in machinery and industrial development, crucial to maintain competitiveness in the global market.

The sector also faces competition from alternative materials, such as so-called “ecological leather”. Bedoya points out that this alternative, although marketed as ecological, is essentially a plastic product with less durability, whose production and disposal generate significant environmental impacts. The industry seeks to counteract these trends by emphasizing the quality and sustainability of natural Paraguayan leather.

El artículo en español aquí.