Labour rights, transparency concerns in Brazil’s leather supply chain

Jangoulun Singsit

Mon, May 19, 2025, 5:21 AM 4 min read

The research, which spanned six months in 2024 studied more than 100 sources, including scholarly articles, studies, opinion pieces, and news coverage, as well as interviews with 19 key stakeholders.

The report titled ‘Toward promoting human rights and decent working conditions in the leather supply chain,' aims to provide a detailed examination of Brazil's leather sector, assessing both its global and national dimensions to pinpoint labour and human rights challenges, chart obstacles, and highlight ongoing efforts.

FLA executive vice president and chief innovation officer Richa Mittal said: “By illuminating challenges in upstream supply chains for commodities like leather, we aim to drive accountability and inspire collective actions toward a more equitable industry. This will help ensure dignity and respect for all workers at all levels of a company’s global supply chain – not just Tier One.”

The leather sector in Brazil with a valuation of approximately $3bn, holds the position of the world's third-largest after Italy and the US, notes the report.

Annually, Brazil processes around 40m hides and serves 80 different international markets. The European Union receives a significant portion of these exports, accounting for 25% or roughly 8m hides. The industry is supported by 244 tanneries and provides employment to around 30,000 individuals within the country.

Projections indicate that over the next 20 years, the Brazilian beef industry may witness a growth of 35%. The expansion of this sector is closely linked to the leather industry, which plays a critical role.

Notably, Brazilian leather sees a high export rate with over 80% being shipped abroad, in stark contrast to beef production where only 20% reaches foreign markets.

Supply chain opacity: A disconnect among farms, slaughterhouses, and tanneries leads to information gaps, reduced traceability of products, undisclosed operations and limited insight into labour conditions.

Labour and human rights concerns: Workers are said to encounter considerable hazards throughout the leather production cycle:

• Slaughterhouses grapple with ongoing worker mistreatment, psychological distress, gender bias, safety issues, and more

• Tanneries are plagued by exposure to harmful chemicals, child labour risks, temporary employment practices, and an absence of unions or worker representation

• Farms exhibit irregular employment practices; lack proper living conditions; and have issues with inadequate pay and potential modern slavery.