In Nicaragua small and medium sized shoe factories now have availability of their main raw material, as a result of the enforcement of the law restricting leather exports.
Thursday, February 28, 2013
With the implementation of the Law on the Promotion of The Leather Footwear and Similar Products Industries, Nicaraguan entrepreneurs are no longer suffering from a shortage of raw materials.
"Alejandro Delgado, president of the National Chamber of Leather, Footwear and Allied Industries (known as Cancunic in Spanish), said that the government restriction which applies to the export of salted leather has benefited the sector because shoe stores across the country no longer suffer from a shortage of raw materials", noted an article in Elnuevodiario.com.ni.
Delgado explained that before the provision went into effect in October 2012, small and medium shoe factories were paralyzed because leather that should have remained in the domestic market went abroad.
"With the exports of leather tanneries had nothing to sell, and as a result we had no raw materials to work with, we were left empty", he added.
The Law for the Promotion of Leather, Footwear and Allied protects Industry has about 1,100 union members in Nicaragua, of which 75% are concentrated in the departments of Masaya and Granada.
The lack of its main raw material is a recurring problem in the Nicaraguan footwear industry.
The National Chamber of Leather, Footwear and Allied Businesses in Nicaragua has requested a temporary ban on the export of leather, noting that most of the production of cattle hides in the country is being sold abroad.
The export restrictions on leather enacted in Nicaragua have allowed for a 7% increase in the activities of shoe factories in 2012.
Laprensa.com.ni reports that the "export restraints on hides and skins, adopted by ministerial agreement on 9 November, is already yielding positive results for the national production of footwear, which will have increased by seven percent this year, five percent higher than 2011.
Domestic production of footwear grew from 1 million pairs of shoes 7 years ago,to 3.5 million in 2011, of which one million were exported abroad.
Alejandro Delgado, president of the National Chamber of Leather Footwear and Allies argues that better quality and better prices in relation to the imported product have led to large gains in the last decade.
×
5245Government Procurement Opportunities in the region