Updated Nov 5, 2022 19:30

Market for Cattle Hide And Skin in Brazil

Market Overview
The Brazilian cattle hide and skin market was finally on the rise to reach $ in , after two years of decline. In general, consumption, however, showed a pronounced downturn. Over the period under review, the market reached the peak level at $ in 2008; however, from 2009 to , consumption failed to regain momentum.

In value terms, cattle hide and skin production soared to $ in estimated in export price. Over the period under review, production, however, showed a deep slump. The most prominent rate of growth was recorded in 2010 with an increase of %. Over the period under review, production hit record highs at $ in 2008; however, from 2009 to , production stood at a somewhat lower figure.

In , the average yield of raw hides and skins of cattle in Brazil dropped slightly to kg per head, waning by -% on figures. Over the period under review, the yield indicated a notable increase from 2007 to : its figure increased at an average annual rate of +% over the last fourteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, cattle hide and skin yield increased by +% against 2007 indices. The pace of growth appeared the most rapid in 2017 with an increase of % against the previous year. The cattle hide and skin yield peaked at kg per head in , and then fell in the following year.

In , approx. heads of animals slaughtered for cattle hide and skin production in Brazil; growing by % against the year before. In general, the number of producing animals, however, saw a noticeable setback. Over the period under review, this number attained the maximum level at heads in 2007; however, from 2008 to , producing animals remained at a lower figure.


Consumption
In , approx. tons of raw hides and skins of cattle were consumed in Brazil; approximately reflecting the previous year. Over the period under review, consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 with an increase of % against the previous year. Over the period under review, consumption hit record highs in and is expected to retain growth in the immediate term.

The size of the cattle hide and skin market in Brazil contracted slightly to $ in , almost unchanged from the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, recorded a noticeable downturn. Cattle hide and skin consumption peaked at $ in 2008; however, from 2009 to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for cattle hide and skin in Brazil, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of cattle hide and skin in Brazil were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for cattle hide and skin. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Brazil remains a net importer of cattle hide and skin; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $.