Consumption from Latin American countries sustains Brazilian furniture exports
Jul 16, 2008. /Lesprom.com/. Furniture exports of the Southern state of Rio Grande do Sol, Brazil, showed positive net sales during the first five months of the year. Latin American commercial partners helped post gains of 4.1% from January to May 2008, compared to the same period in 2007.
Jul 16, 2008. /Lesprom.com/. Furniture exports of the Southern state of Rio Grande do Sol, Brazil, showed positive net sales during the first five months of the year, ITTO reported. Latin American commercial partners helped post gains of 4.1% from January to May 2008, compared to the same period in 2007. Latin American countries represent one third of the demand for Brazilian furniture. Revenues were $112.6 million, up from $108.2 million in the same period of 2007.
Furniture imports of Venezuela were high during the period, according to the Association of Furniture Producers of Rio Grande do Sul state (MOVERGS). The country purchased 318% more in the period January to May 2008, with the total amount of exports to Venezuela reaching $1.3 million from January to May 2007, but increased to $5.2 million during the same period in 2008. Venezuela was responsible for 4.6% of Rio Grande dol Sul furniture exports from January to May 2008.
Medium Density Fiberboard (MDF) and Medium Density Particleboard (MDP) represented 80% of outputs from the Rio Grande do Sul state. The proximity of Latin American markets enhanced the competitiveness of furniture exports from Rio Grande do Sol vis-à-vis the Asian competitors, which suffered logistical constraints such as higher freight costs. The unfavorable exchange rate of the Brazilian Real to the US Dollar was also a factor for the weakening overall furniture exports.