Raw bovine and equine hides and skins market in MERCOSUR

Earlier Report Observations

Between 2018 and 2019, the market volume for raw bovine and equine hides in MERCOSUR grew from 1 433 thousand tons to 1 468 thousand tons, supported by a broader expansion of the regional beef sector. Exports of bovine meat from the bloc grew by 17% in 2019, indicating higher slaughter rates and consequently greater availability of hides as a by-product. This trend was interrupted in 2020 when the market volume contracted to 1 342 thousand tons. The COVID-19 pandemic caused a crisis in the hide supply chain, as tanneries stopped collecting hides from slaughterhouses, creating handling and sanitary problems. Concurrently, a sharp rise in raw hide exports, which more than tripled to 120 thousand tons, reduced domestic availability.

The market continued to contract in 2021, falling to 1 274 thousand tons. A strong recovery followed in 2022, with market volume rising to 1 406 thousand tons. This rebound coincided with MERCOSUR consolidating its position as the world's leading beef exporter, achieving a historic record. The growth in meat production and slaughter directly increased the supply of raw hides. Furthermore, the value of Argentina's beef and hides export complex grew by 24.3% that year, reflecting stronger market activity.

In 2023, hide production increased significantly to 1 579 thousand tons, while the domestic market volume stabilized at 1 434 thousand tons as a surge in exports absorbed the additional supply. Exports rose to 183 thousand tons, a jump facilitated by a key policy change: in January 2023, the Argentine government eliminated all export duties on bovine hides, removing a former constraint and providing greater legal certainty for investors. Preliminary 2024 trade data shows exports climbing further to 219 thousand tons, continuing this trajectory.

Production raw bovine and equine hides and skins in MERCOSUR

In kind, 2017-2020, K t

Top producers of raw bovine and equine hides and skins, 2017-2020

World map of production of raw bovine and equine hides and skins, 2017-2020

After rising for two consecutive years, production of raw bovine and equine hides and skins in MERCOSUR declined. In 2020, the region produced 1,444 thousand tons, marking a modest year-over-year decrease of 2.6%. Looking at the broader period from 2017 to 2020, production increased by 3.8%, which translates to an average annual growth rate of 1.3%. The peak production occurred in 2019, reaching 1,482 thousand tons. The most significant annual increase was recorded in 2018, at 4.3%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

Exports raw bovine and equine hides and skins from MERCOSUR

Exports in kind, K t

Exports of raw bovine and equine hides and skins from MERCOSUR grew for the third year in a row. In 2020, exports totaled 120.3 thousand tons, reflecting a substantial year-over-year surge of 248.2%. Over the four-year span from 2017 to 2020, exports expanded by 673.2%, averaging an impressive annual growth rate of 97.7%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, China, Thailand, and Turkey were the leading destinations for MERCOSUR's exports of raw bovine and equine hides and skins in volume terms. China accounted for 43.1% of exports, Thailand for 9.6%, and Turkey for 6.7%. Together, these three markets represented 59.4% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

The market for exports in value terms showed notable fluctuations during this period. The lowest value was recorded in 2017, while the highest occurred in 2020, with a peak-to-trough ratio of 1.9 times. In 2020, the value of exported raw bovine and equine hides and skins from MERCOSUR reached $39,105 thousand, up 72.2% from the previous year. The largest annual decline was in 2019, at 35.8%, while the biggest increase was in 2018, also at 72.2%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

Between 2017 and 2020, three key markets—China, Thailand, and Portugal—collectively accounted for 57.6% of the total export value of raw bovine and equine hides and skins from MERCOSUR.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports raw bovine and equine hides and skins to MERCOSUR

Imports in kind, K t

Import volumes exhibited irregular changes, pointing to a volatile market environment. The lowest level was in 2017, and the highest in 2019, with a 2.7-fold difference between these years. In 2020, MERCOSUR imported 18.5 thousand tons of raw bovine and equine hides and skins, down 10.5% from the year before. The peak import volume was recorded in 2019 at 20.6 thousand tons. The most significant annual increase occurred in 2018, at 88.3%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

During the 2017–2020 period, the United States, South Africa, and Colombia were the primary sources for MERCOSUR's imports of raw bovine and equine hides and skins in volume terms. The United States contributed 22.2% of imports, South Africa 9.6%, and Colombia 0.7%. Combined, these three countries made up 32.6% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

Import values also showed irregular changes, indicating a volatile market environment. The lowest value was in 2017, and the highest in 2019, with a 1.8-fold difference between these years. In 2020, MERCOSUR imported $19,513 thousand worth of raw bovine and equine hides and skins, representing a significant decrease of 11.7% compared to 2019. The peak import value was recorded in 2019 at $22,094 thousand. The largest annual increase was in 2018, at 83.2%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

From 2017 to 2020, the United States and South Africa dominated the import structure in value terms for MERCOSUR, together accounting for 57.0% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020