Article: BRAZILIAN FIRMS FACE TOUGH TIMES.

Byline: MIKE KEPP

So Paulo, Brazil - Cutthroat competition from China coupled with continuing currency woes is forcing Brazilian footwear producers to consider new alternatives for survival - and a few companies here are even shifting some production to Asia for the first time.

At the recent Couromoda fair, held here Jan. 15-18, exhibitors continued to describe a deteriorating export business that is hurting sales to the U.S. market. (The U.S., which accounted for 50 percent of Brazilian footwear export volume in 2005, only accounted for 46 percent in 2006.) "If the dollar weakens further against the real in 2007, which is possible, this year will be ...

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