The southern Brazilian state of Rio Grande do Sul, the country's best-known region for leather and footwear production, is losing part of its share of exports to the northeast, according to Abicalçados, the footwear industry association. In 2005, the companies in Rio Grande do Sul contributed 69.3 percent of Brazil's total footwear exports, but at the end of 2012, this figure had gone down to 34.8 percent. In fact, the businesses that develop in the northeast are often originally from Rio Grande do Sul. The geographical shift is partly due to labor costs and to the larger distance separating the Rio Grande do Sul area from important export markets in Europe and the U.S. compared with rival states such as Ceará, making logistics costs for the latter less expensive. In the first 11 months of 2012, Rio Grande do Sul brought in $346.1 million in export revenues from footwear, down by 33.7 percent when compared with the same months in 2011. For the rest of Brazil, the decrease in revenues from footwear exports amounted to 15.4 percent, down to $994.7 million. The average price per pair for the shoes made in Rio Grande do Sul is still the highest in Brazil at $25.09, against an average of $20.53 per pair in São Paulo and $15.65 per pair in Bahia.