Industry News Archives

Peru President Ollanta Humala visiting shoe factory in El Porvenir, Trujillo

A total of 897 micro and small manufacturing companies from Peru were selected for the school shoe program which is part of the “Buy from Small Peru Companies Program” promoted by the national government in the context of its social inclusion policy of the Cooperation Fund for Social Development (Foncodes).

In this first phase the micro and small companies will benefit from chilren’s footwear corresponding to the departments of La Libertad, Arequipa, Junín, Puno and Huánuco. In the second stage the inclusion of a further 500 micro and small companies is expected.

Argentina, Bolivia, Ecuador and Venezuela have all run similar programs before which aim to maintain job levels and offset the many illegal imports which are still affecting the local footwear industries of these countries.

When the first stage was announced in Peru some 1,200 micro and small companies specializing in the manufacture of footwear presented their application forms. Of these 987 managed to qualify with the minimum requirements demanded by the government.

The prerequisites required to qualify for one of the school footwear contracts were very strict. Identity cards, tax registration, proof of registration in the national micro and small companies register and other bureaucratic forms.

Each qualifying company received an order for between 800 and 1,200 pairs of shoes. The price of each pair is around US$15.37 with sizes ranging from 29 – 39 with all taxes included. As a result each micro and small manufacturer receives between US$12,300 and US$18,450 depending on the production capacity.

On average each company has four or five machines and generates between six to eight temporary jobs. The number of indirect jobs is higher since they include supplying components and transport.

So far 3,769 micro and small companies have applied to be part of this national manufacturing plan for school uniforms, footwear, jumpers and blouses, which will be distributed to educational institutions in rural areas of extreme poverty.

Information courtesy of www.cueroamerica.com Translated from Spanish by Richard Smith