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Brazilian footwear exports on the high

Jul 4, 2017 / Brazil
Brazilian footwear exports on the high
According to the Brazilian Shoe Manufacturers Association, the country’s footwear exports recovered pace. From January to May, 49 million pairs were sold abroad, generating 441 million US dollars
This positive performance resulted in a 1.1% increase in volume, compared to similar period last year, and a significant increase in value terms (+20.1% in US dollars).

According to Heitor Klein, Executive President of Abicalçados, the Brazilian Shoe Manufacturers Association, the devaluation of the dollar has contributed to the increase of the prices for Brazilian products (up by 13.9%, from 8.57 US dollars to 10.86 US dollars a pair). The appreciation of the Brazilian Real continues and astrong domestic currency results in higher prices for the Brazilian products, as the companies will face higher production costs (expressed in the Brazilian currency). Mr. Klein expects that the rest of the year will be impacted by a slowdown of the Brazilian exports as a result of the currency fluctuations and the domestic situation with Brazil being impacted by the uncertainty in politics.

In the first five months of the year, the main destination for Brazilian footwear was the United States, to where 4.7 million pairs were sent, generating 79.3 million US dollars, a decrease of 10.8% in volume and -1.3% in US dollars from similar period last year.

Second destination was Argentina, with 3.6 million pairs with a total value of 56.2 million US dollars, increasing both in volume (28%) and value (62.8%) in comparison with the same period of 2016. Paraguay follows with 5.8 million pairs and total value of 39 million US dollars, lower numbers in volume terms (-9%), but an outstanding increase in value terms, with revenue more than doubling value (+120%) compared to similar period in 2016.

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