Brazilian footwear exports record positive growth in Q1 of FY19

  •  Brazil
  •  Apr 16, 2019
  •  By WFB Bureau
  • 1959 Views
Brazilian footwear exports record positive growth in Q1 of FY19

Brazil footwear exports witnessed a dip of 7.7 per cent and 9.4 per cent in volume and value terms respectively in March of current fiscal compared to corresponding period a year ago, as per the data revealed by the Brazilian Footwear Industries Association (Abicalçados).

The sector exported 9 million pairs worth US $ 83.9 million in the month of March.

However, despite the setback, the first quarter of the current financial year registered a positive growth. The quarter from Jan to March witnessed shipping of 35 million pairs grossing US $ 267.1 million, up by 14.9 per cent in volume and 6.4 per cent in revenues as against the same quarter of FY’18.

The major export destinations for Brazilian footwear were US followed by Argentina and France during the quarter. The country shipped 3.97 million pairs to US generating US $ 54.27 million. Meanwhile, Argentina imported 1.78 million pairs of shoes worth US $ 22.23 million. For France, the footwear import number stood at 2.87 million pairs grossing US $ 16.28 million.

The Brazilian states which exported majorly during the first quarter of FY’19 were Rio Grande do Sul (7.95 million pairs; US $ 118 million), Ceará (14.15 million pairs; US $ 79.33 million) and São Paulo (1.79 million pairs; US $ 24.59 million).

According to Heitor Klein, Executive President, Abicalçados, exports performance for March declined because of decrease of sales to the Argentinian market.  Last month, Argentina imported 50 per cent less in dollars and 34.9 per cent less in volume in relation to March 2018, registering the purchase of 880 thousand pairs for US $ 10.96 million.

“The slowdown in domestic consumption, coupled with the containment measures for imports imposed by the IMF, has led to a decrease in exports to that country since the second half of last year,” further added Heitor. The constant exchange rate fluctuations, which hinder the setting of prices, also influenced the setback.

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