COMESA
Leather and Leather Products Institute
(COMESA/LLPI)

Member of: IULTCS    International Council of Tanners    

Leather for Health, Wealth and Luxury

Leather Related News Flash for the Week (June 9 to 14, 2013)

 


Part I: General News
Vietnam
A country with a relatively small number of livestock population (8.5 million cattle and 1.3 million goats- FAO compendium 2011) generated 3.13 billion dollars from the sale of footwear to USA, UK, Belgium, Japan, China in during the period January-May 2013.
Colombia
Massive importation of cheap footwear from China raised public anger in Colombia. Colombian tanneries and shoemakers are said to be in difficult situation due to more than 30 million pairs of shoes that were imported from China at less than 1 USD per pair. There was a countrywide protest on June 7, 2013 against the massive imports of Chinese shoes, the export of raw hides and the difficult situation for leather tanneries and shoemakers.
Brazil
Exports of hides and skins made by SECEX (Foreign Trade Secretariat), for the month of May 2013, showed record amounts in the second consecutive month, surpassing the value achieved in the same month last year and compared to April this year. The month of May shows a total value of US$ 229.3 million, an increase of 6.8% compared to May 2012, whose value was US$ 196.3million, and an increase of 5.0% compared to April 2013, whose value was US$ 218.4million
.

The Centre for the Brazilian Tannery Industry (CICB) announced its plan to organize the 2nd CICB Sustainability Forum on  28th August 2013, during the next Courovisao (International Fair of Components, Leather, Chemicals, Equipment and Accessories for Footwear and Manufactured Goods).
The forum is said to bring together world-renowned experts to present and discuss the newest ideas, concepts and sustainable practices to the entire tannery chain. Among the expected speakers, the Italian Federico Brugnoli will be there. Federico Brugnoli is a specialist in sustainability, life cycle assessment and leather performance management and responsible for UNIDO’s technical report concerning the carbon footprint in leather.
Michael Appleby, Chief Scientific Adviser of the British organization World Society for the Protection of Animals will also be another panelist in charge of the panel: Leather, Past and Future: Ecology, Economy and Ethics of Sustainability.
For further information please visit www.brazilianleather.com.br and www.cicb.org.br.
China
All China Leather Exhibition (ACLE), known as the premier event for international companies seeking opportunities in China's huge markets will have its next Fair in Shanghai from 4 to 6 September. The Leather Industries of America will participate for the first time, while Germany and Turkey will have  bigger pavilion size compared to their previous participations. As per the information released by organizers more than 1,100 exhibitors and 22,000 visitors are expected.
For further information visit http://www.aclechina.com/
KENYA
The market for leather and leather products is said to be improving - especially for cow and goat - with demand coming from China and Italy. Some exporters have accepted offers for wet salted even though they have to pay the 80% duty. Wetblue hide sales have been reported as well at the current prices.

KLDC, UNDP-NDMA strengthen skills building for Lodwar/Dadaab Project Representatives
Kenya Leather Development Council (KLDC) has yet again partnered with United Nations Development Programme through National Drought Management Authority (UNDP-NDMA) to facilitate a Basic Leather and Leathergoods Training for the Lodwar/Dadaab project representatives. The exercise took place at the Animal Health and Industry Training Institute (Ahiti), Kabete and 16 participants attended the workshop between 29th April, and 10th May, 2013.
The move was informed by the need to ensure adequate skills building to facilitate proper management of the respective projects in Lodwar and Dadaab. The trainees are expected to serve as Trainers of Trainers (ToTs) once the rural tannery and leathergoods units in the respective project areas initiate operationalization.
The Lodwar/Dadaab Projects are the results of a liaised effort between KLDC and UNDP/NDMA to enhance resilience and promote rural development in the drought-prone areas of Turkana and Garissa County through feasible value added initiatives. The Project took off in September, 2012 and KLDC has maintained a technical role throughout the conception, initialization and construction phase of the project which was completed in May, 2013.
Management teams for both projects have already been instituted and the trainings are designed to provide the project representatives with technical hands-on skills in the operations of a tannery as well as leathergoods units.
Mr. Harrison Ndungu, Capacity Building Representative- KLDC served as the Project Coordinator.

Leather belts and cardholders designed by trainees during the training at Ahiti.

ETHIOPIA
Ethiopian leather and leather product exports brought in 111.5 million USD during the 2012/13 fiscal year 11 months period. The Government encourages exporting of finished leather or leather products. Unfinished leather like Wet blue exportation is highly discouraged with export tax of up to 150%.
Part II: Some Indicative Prices of Leather and Leather Products


Product name

Grade

USD/sqft fob/ori/c/off

Ethiopia

 

 

full aniline

i-iii

2.60-3.00

iv

1.95-2.60

v

1.70-1.95

Semi aniline and golf leather

i-iii

2.10-2.70

iv

1.75-2.05

v

1.45-1.75

Resin lining

A

1.25-1.50

 

B

0.95-1.20

Fully finished Cow upper leather

TR (i/iv)

1.05-1.50

 

v

0.80-1.05

aniline lining

A

0.90-1.15

 

B

0.70-0.90

Kenya/Uganda

 

 

Suspension dried hides

Weight/pce 8/12  lb

2.80 nominal

 

iv grade

2.20  nominal

 

v grade

1.75  nominal

Wetsalted hides (Kenya)

 

 

 

i/ii

1.65

Wetblue hides

 

 

Sqft/pce =av 23/27

tr/iv/v/vi

1.00-1.10

av 31/33

tr/iv/v

1.10

av 20/26

vi

0.70

 

vii or rejects

0.55

Sqft/dzn

t/r iv/v

68.00

55/60

vi

36.00

vii

21.00

tr/iv/v

70.00

Wetblue goats

 

USD/dzn fob/ori/c/off

sqft/dzn 55/60

tr/iv/v

70.00

sqft/dzn 70/75

 

75.00

sqft/dzn 55/60

vi

38.00

sqft/dzn 40/50

vii

22.00

 

 

 

Malawi

 

USD/kg cfr/ori/c/off

Kg/pce, 14/16

i/ii

1.65-1.68 cfr/ori/c

Suspension dried goatskins  Lb/100 pcs, 90/100

i/iii

42.00 cfr/ori/c/off

Drysalted hides kg/pce, 9/+ av 10/11

a/b

1.85

Sudan

 

 

Drysalted hides,  kg/pce,  av 10/11

 

USD/kg cfr/ori/c/off

 

a/b

1.85

Zambia
Kg/pce in wetblue (pressed)

 

USD/pce cif/t/c/off

10

 

29.50

15

 

43.50

19

 

53.50

27

 

63.50

 

 

 

 

 

 

 

 

 

 

Source: Compiled from Sauer Report and other sources
Abbreviations
a/b/c; Private quality indication by supplier; 'a' is not necessarily 1st grade, etc
Av: Average
c: cash payment
cif: Cost, Insurance & Freight
fob: Free On Board
off: Offered
ori: Price payable to supplier in country of origin of the goods
pce : Piece
sqft: Square Feet
t: Price Payable to Traders outside the country of origin of the goods

Leather Related News Flash for the week (June 16 to 22)

 

In the Global Market , Demand for Leather (Products) said to be Gloomy during the ending Week
In the US there was increasing downward pressure on cow hide prices connected to the higher kill figures. The total commercial cow kill for the first 6 months of the year is estimated to end up 3% over the same period last year (a record figure since 1996). Hides and Skins net sale were down 10 percent from the previous week.
Turkey tanners seem to have problem of cash to pay their skin purchases while Chinese tanners are doing all they can to push the prices of UK spring lambs down.
Business is also said slow and difficult in Italy. A number of contracts concluded for July arrivals are now asked to be delayed till after 10th September. But sales continue
Bangladesh’s export in leather sector, however, increased by 64% during the period July 2012-May 2013 compared to the same period a year before. Lower production costs leading to cheaper products prices might have attracted buyers, but considering the recent disasters in the textile industry in this country, many question the working conditions under which leather and leather products are made.
Court Ruling Over Hide Symbol Dispute in Italy
Italian lawyer Paolo Viscuso has published details of a court case in Milan earlier this year in which Italian tanning industry association, UNIC, was told it had no right to ask for the seizure of goods that use the well known symbol for real leather, the outline of a hide.

UNIC first filed a trademark application for the hide outline, known in Italy as the vacchetta or ‘little cow’, in 1977. According to Mr Viscuso, an anomaly grew up in Italy in which UNIC “asked for and frequently obtained” the seizure of goods that it believed were using the symbol without its authorisation.

After one such incident, French shoe brand Chaussures Eram filed a lawsuit against UNIC. Mr Viscuso has now reported that the court in Milan found in favour of Eram and against UNIC because Eram argued successfully that the hide symbol had been in widespread use in many countries before 1977.

Eram told the court that a version of the symbol was being used in France and being recognised by French consumers as long ago as 1925. A similar symbol began to be used in the US in 1961, in the UK in 1968 and in Germany in 1973.

“The most important consequence is that the judgment rectified an Italian anomaly relating to the use of the ‘vacchetta’ device,” Mr Viscuso said. “Before the decision, the contested mark was freely used by the tanning community in other countries of the European Union. In Italy, however, Unic enjoyed a unique monopoly, and frequently asked for and obtained the seizure of goods based on its trademark rights. Such a situation created significant uncertainty.”

He explained that the court decision has not yet been made final and said that decisions on the use of the hide symbol with the words ‘vero cuoio’ and ‘vera pelle’, also subject to trademarks.

Mr Viscuso told leatherbiz he did not know the reason for the delay in finalising the original decision and for reaching decisions on the follow-up questions. But he said that in the past UNIC has charged a fee to “third parties” to use the symbol.

Source: http://www.leatherbiz.com/fullitem2.aspx?id=130135

COMESA-Leather and Leather Products Institute, UNCTAD, Commonwealth Secretariat and African Export-Import Bank (Exim Bank) Co-organized Workshop Successfully Completed

The workshop on Strengthening Regional supply Chains in Leather Sector in Sub-Sahara Africa, co-organized by COMESA-LLPI, UNCTAD, COMSec and Exim Bank, took place from June 6 to 7, 2013 at Nexus Hotel in Addis Ababa, Ethiopia.

The workshop involved important sectoral stakeholders, i.e. tanners, exporters, manufacturers, investors, academicians and policy makers. A total of 35 officials and sector representatives (8 public and 19 private sector participants drawn from Burundi, Comoros, Ethiopia, Kenya, India, Madagascar, Malawi, Rwanda, Sudan, Swaziland, Uganda, Zambia and Zimbabwe, and 8 other representatives from international and regional organizations, namely: UNCTAD, COMESec, COMESA and COMESALLPI) attended the workshop.

The workshop was centered in identifying and promoting regional leather sector supply chains to assist African countries in value addition of the sector and diversification of their export. To that end, a total of 9 papers were presented and thoroughly discussed.

At the end of the workshop participates identified nine key recommendations that are for most part consistent with the Strategic Objectives of COMESA/LLPI.

After reviewing the evaluation of the participants, it was found that participants were satisfied with workshop organization, contents and delivery of the presentations, and also indicated areas that require attention for further improvement.

Kenya Leather Sector institutions pool synergies to improve productivity


At the forum held in Eastland Hotel Nairobi on 19th June 2013, participants unanimously agreed to form strategic linkages between the Kenya Leather Development Council (KLDC), Kenya Meat Commission (KMC) and Kenya Livestock Marketing Council (KLMC) to create a competitive edge for Kenyan livestock and livestock products.

Read the whole story Press Release, Kenya Leather Development Council (pdf).

Leather Related News Flash for the week (June 24 to 30)

 

Part I: General News

The 7th Regional Leather Sector Core Team Meeting Held

The 7th Regional core Team Meeting organized by COMESA-Leather and Leather Products Institute (COMESA/LLPI) and financed by the COMESA Regional Integration Support (EU) was held in the Sudan from 25-26 June, 2013 at Grand Villa Hotel, Khartoum.
The main objectives of the Core Team Meeting were:

  • To design practical strategic guidelines for improving the leather value chain in the COMESA Region,
  • To strengthen the collaboration between COMESA-Leather and Leather Products Institute and COMESA member States and
  • To develop a strategy for fund raising

The Meeting was officially opened by H. E. Mr. Osman Omar Al-Sheriff, Minster of Trade of the Republic of the Sudan and attended by Core Team members drawn from public and private sectors from 6 member countries (Eritrea, Ethiopia, Kenya, Sudan, Uganda and Zimbabwe). COMESA Secretariat, COMESA/LLPI and various stakeholders from the host country, the Sudan.
The 7th Core Team Meeting selected Ms. Nalima Rupanic, Managing Director of Adelphi Leather Shop of Kenya as Chairperson of the Core Team for the next two years.
The Core Team Meeting thoroughly discussed on various pertinent issues that encompass:

  •  Importance of Designing strategic Guidance for improving the Regional Leather Value Chains in the COMESA Region;
  • Strengthening of collaboration between COMESA/LLPI and Member States;
  • Fundraising Mechanisms Development

At the end of the second day, the meeting adopted the minutes/report of the 7th Core Team Meeting, and fixed the date and venue of the 8th Core Team Meeting.


New Leather Strategy for Zimbabwe


Zimbabwe has launched a new strategy for its leather industry with the aim of boosting the whole leather value chain in the country. COMESA, the Common Market for Eastern and Southern Africa, has given its backing to the plan, called the Zimbabwe Leather Value Chain Strategy.


Sindiso Ngwenya, Comesa secretary-general, said at a launch event for the initiative in Bulawayo in mid-June that the Comesa region was losing millions of dollars in potential revenue by exporting raw material that could be made into leather.
“The overall market potential of Comesa leather can grow from an estimated value of raw material of $378 million a year to an estimated value of $875 million for fully finished leathers, which represents a value addition of roughly $500 million or about 150% of the value of raw materials,” he said. “And if all the raw hides and skins are transformed into finished goods like footwear, garments and other leather goods, the industry would balloon to $2.5 billion from the present value of $450 million.”


He said the COMESA region was important to Africa and the world in terms of the size of livestock herds and production of hides and skins.
Source: http://www.leatherbiz.com/fullitem2.aspx?id=130087 

A Chinese Tannery Overcomes Initial Obstacles to Find Success in Ethiopia
Chinese Tannery

Workers in China-Africa Overseas Leather Products SC process raw materials in the factory at Sululta, north of Ethiopia's capital, Addis Ababa. Li Lianxing / China Daily


He Mingliang leather tannery, in central China's Henan province, is a typical success story: Expansion to Africa, a new factory in Ethiopia, sales of leather goods across the globe and a staff of more than 500.


But as with any success story, struggles play an early and defining role. For He's tannery, which had been buying semi-processed leather from Ethiopia since 1985, soaring costs in China during the early 2000s hampered business.
He set his sights on Ethiopia to invest in manufacturing factories, but still had no expansion funds and no basic knowledge of how business was run on the continent.


He says he was scared of possible illnesses in Africa and even regional conflicts.
But He did his homework, making several trips to the country to research how commerce is conducted and to find funding sources. Then came a meeting in Beijing in 2004 with then Ethiopian ambassador Addisalem Balema. Balema encouraged He and took a great interest in the venture plans. With Balema's help, He got in touch with the China-Africa Development Fund in Beijing three years later.


"CADF turned out to be very interested and decided to support us," he says.
The tannery's subsidiary in Ethiopia, the China-Africa Overseas Leather Products SC, is now quickly becoming a model for the leather industry in the country.


Li Jun, project manager of the CADF in Ethiopia, says it decided to support He's project in Ethiopia for several reasons.
"This is fundamentally a mutually beneficial project that could expand Chinese tanneries to Africa. But more importantly, it could lift the entire industry in Ethiopia and benefit farmers at the most basic level," Li says. "It is also a good opportunity to create jobs, which is the priority for Africa's future sustainable development."


Li also says the reason the CADF chose China-Africa Overseas Leather Products is because the Henan-based parent company has been an industry leader in China for more than half a century and CADF believed its technologies and skills could offer a great opportunity to Ethiopia.


The factories were completed in November 2010 in the town of Sululta, to the north of the capital Addis Ababa.
Operations during the first year were rocky, Li says. Many unexpected events brought disruption and at times daunted his investors in Ethiopia.


"Our Chinese staff were beaten by local workers because they didn't like our management system in which several local workers are guided by one Chinese team leader," he says. "More importantly, locals were told by certain people that our factory was severely polluting (Sululta)." He says the company values the environment and that the factory was built with particular attention to environmental protection in order to set a tone for the industry in Ethiopia.
Source: http://africa.chinadaily.com.cn/weekly/2013-06/14/content_16620709.htm


The Fourth Beast to Beauty Conference


The fourth Beast to Beauty conference, jointly organised by leather training consultancy LeatherWise and World Leather magazine, with the support of Pittards, the Scottish Leather Group, the University of Northampton and the Leathersellers Company, took place in Northampton on June 13, 2013.  More than 60 delegates, representing tanning groups, major retailers, automotive and luxury brands, leather chemicals manufacturers and a wide range of fashion-focused university and college departments from different parts of the UK attended the conference.

Speakers included Kevin Sefton, one of the co-founders of Glasgow-based handmade footwear brand Govan Originals, colour trends expert Laura Perryman and Rachel Garwood and Jane Mills from the University of Northampton who talked about the role of leather in design education at the university. Mr James Lang, marketing director of the Scottish Leather Group gave a presentation on the work the group has done to reduce its carbon footprint, with the tannery waste-to-energy treatment plant at its Bridge of Weir facility one of the best examples. Reg Hankey, the chief executive of Pittards, also spoke, focusing his presentation on recent efforts in the global industry to counteract misleading anti-leather campaigns.

The conference closed with a discussion involving Gustavo González Quijano, secretary general of COTANCE, and Dr Gerhard Wolf, the head of the leather technical competence centre at chemicals manufacturer BASF. Both participants agreed that there are valid arguments for attributing 0% of the upstream carbon emissions of cows, sheep and goats to leather’s carbon footprint. They expressed hope that the global industry might soon agree on a framework for calculating the carbon footprint of leather and, from there, be able to communicate its position to brands and consumers “with one voice”.

They accepted that tanners might face opposition to 0% from finished product brands, but said this did not mean that what they called a flawed methodology of allocating a share of carbon footprint to “non-determining” by-products of the meat industry was any more valid. Nevertheless, they suggested it ought to be possible for the global leather industry to agree to a compromise on 0% to make discussions between tanners and their customers a bit easier.

Source: http://www.leatherbiz.com/fullitem2.aspx?id=130047


Global Tannery of the Year 2013 Winner Shares its Water Achievements


PrimeAsia China, the third Tannery of the Year Awards programme winner,  published an article outlining its water footprint on “China Water Risk” newsletter. China Water Risk is a non-profit initiative dedicated to highlighting water risk and fostering efficient and responsible use of China’s water resources.

In the article, PrimeAsia indicated that based on the Water Footprint Assessment Manual: 2011 it calculates its water footprint at 3.3 litres per square-foot of finished leather, but it said only 1% of the total corresponds to water consumed in its tanneries. PrimeAsia takes responsibility for 5% of a cow’s life-cycle water consumption and its water footprint ends at the door of its customers’ factories.

Breaking down the 3.3 litres of water consumed during the lifecycle of each square-foot of leather, PrimeAsia calculates that 91% is consumed during the life of the cow, 5% is consumed in the beamhouse (PrimeAsia’s two tanneries in Vietnam and in Guangdong Province in China work from wet blue), and 3% is consumed during the manufacture of the chemicals it uses in its processes.

Water-saving practices at both PrimeAsia tanneries include collecting rainwater for use in production processes, reuse of water within the production process and extensive use of recycled water throughout the facilities. The annual company-wide water reduction goal in 2013 is an absolute reduction in water usage of 11% compared to 2012.
Source: http://www.leatherbiz.com/fullitem2.aspx?id=129991

 

Part II: Some Indicative Prices of Leather and Leather Products


Product name

Grade

USD/sqft fob/ori/c/off

Ethiopia

 

 

full aniline

i-iii

2.60-3.00

iv

1.95-2.60

v

1.70-1.95

Semi aniline and golf leather

i-iii

2.10-2.70

iv

1.75-2.05

v

1.45-1.75

Resin lining

A

1.25-1.50

 

B

0.95-1.20

Fully finished Cow upper leather

TR (i/iv)

1.05-1.50

 

v

0.80-1.05

aniline lining

A

0.90-1.15

 

B

0.70-0.90

Kenya/Uganda

 

 

Suspension dried hides

Weight/pce 8/12  lb

2.80 nominal

 

iv grade

2.20  nominal

 

v grade

1.75  nominal

Wetsalted hides (Kenya)

 

 

 

i/ii

1.65

Wetblue hides

 

 

Sqft/pce =av 23/27

tr/iv/v/vi

1.00-1.10

av 31/33

tr/iv/v

1.10

av 20/26

vi

0.70

 

vii or rejects

0.55

Sqft/dzn

t/r iv/v

68.00

55/60

vi

36.00

vii

21.00

tr/iv/v

70.00

Wetblue goats

 

USD/dzn fob/ori/c/off

sqft/dzn 55/60

tr/iv/v

70.00

sqft/dzn 70/75

 

75.00

sqft/dzn 55/60

vi

38.00

sqft/dzn 40/50

vii

22.00

 

 

 

Malawi

 

USD/kg cfr/ori/c/off

Kg/pce, 14/16

i/ii

1.65-1.68 cfr/ori/c

Suspension dried goatskins  Lb/100 pcs, 90/100

i/iii

42.00 cfr/ori/c/off

Drysalted hides kg/pce, 9/+ av 10/11

a/b

1.85

Sudan

 

 

Drysalted hides,  kg/pce,  av 10/11   USD/kg cfr/ori/c/off
  a/b 1.85
Zambia Kg/pce in wetblue (pressed)   USD/pce cif/t/c/off
10

 

29.50

15   43.50
19   53.50
27   63.50

Source: Compiled from Sauer Report and other sources


Abbreviations
a/b/c; Private quality indication by supplier; 'a' is not necessarily 1st grade, etc
Av: Average
c: cash payment
cif: Cost, Insurance & Freight
fob: Free On Board
off: Offered
ori: Price payable to supplier in country of origin of the goods
pce : Piece
sqft: Square Feet
t: Price Payable to Traders outside the country of origin of the goods

Leather Related News Flash for the week (July 1 to 7, 2013)

 

Part I: General News

WORLD MEAT/HIDE PRODUCTION
An interesting but alarming new report by the FAO of the United Nations and the OECD says that world meat production will only increase by 1.6% per year in the next decade (2013-2022).
In the past decade the increase was 2.3% per year.

Knowing that the meat industry manages to continuously produce more meat with less animals, this could mean that the 1.6% increase does not demand a bigger number of animals and thus that we should not count on more hides globally till the year 2022. And since the demand for leather products will no doubt continue to increase and increase far more than 1.6% per year also, one imagine ........... A doomsday story! But keep this in mind: we shall never have more hides than we have animals.

Increases announced for South America are: Brazil + 10.6%, Argentina + 21%, Uruguay + 30%, Paraguay + 46%. If such seemingly huge increases still result in a global increase of only 1.6% one can imagine how much production must drop in a number of other countries (as we already knew and reported in previous reports).

Production will also increase mostly in developing countries but these countries generally produce medium or lower quality hides.

IMPORTS OF LOW QUALITY NON LEATHER FOOTWEAR
Like a good number of other countries before them the Turkish footwear industry through its national association has approached the government to take protectionist measures against cheap imports of low quality non leather footwear from Asia.
This synthetic footwear is sold for 5 Dollars and less! In 2012 imports amounted to 863 million USD while national footwear exports were worth 552 million USD.
KENYA
The market in Kenya is steady. There is good demand from India for cow hides but the unfavourable exchange rate makes buyers reluctant to import. Many importers sell locally in the Indian market.

The Chinese hide importers are no longer prepared to accept incorrect descriptions (raw hides) on the bills of lading since they are closely watched by the customs authorities.
There have alsways been ways to get the raw hides out and into China but it is more and more difficult and risky. Traders wonder, however,  where the hides are then because not all are being wetblued and getting offers is difficult as well.

The goat skin market is strong with demand coming from China. The sheep skin market seems to be slowly reviving as well.

MALAWI
After bids from China which were refused nothing happened. The slaughterhouses stick to their prices and have no need to sell now as they are still short of material. Traders think they will keep the prices where they are now until ACLE in Shanghai in September.

SUDAN
Sudans drysalted hide prices are found too high to interest tanners abroad when compared to other African origins. The value as food for human consumption in Nigeria may have to do with that.

Counterfeit articles
Last Tuesday (June 25, 2013) the French customs destroyed 1 million counterfeit articles in several places in the country. It was reported the counterfeit business keeps growing and did an estimated 6 billion EUR damage to the economy.

In 1994 200,000 items were intercepted but in 2011 this had gone up to 8.3 million.

Seventy percent of counterfeit articles are made in Asia. One third was ordered through the Internet.

Source: http://www.thesauerreport.com/subscribers.php

Part II: Some Indicative Prices of Leather and Leather Products


Product name

Grade

USD/sqft fob/ori/c/off

Ethiopia

 

 

full aniline

i-iii

2.60-3.00

iv

1.95-2.60

v

1.70-1.95

Semi aniline and golf leather

i-iii

2.10-2.70

iv

1.75-2.05

v

1.45-1.75

Resin lining

A

1.25-1.50

 

B

0.95-1.20

Fully finished Cow upper leather

TR (i/iv)

1.05-1.50

 

v

0.80-1.05

aniline lining

A

0.90-1.15

 

B

0.70-0.90

Kenya/Uganda

 

 

Suspension dried hides

Weight/pce 8/12  lb

2.80 nominal

 

iv grade

2.20  nominal

 

v grade

1.75  nominal

Wetsalted hides (Kenya)

 

 

 

i/ii

1.65

Wetblue hides

 

 

Sqft/pce =av 23/27

tr/iv/v/vi

1.00-1.10

av 31/33

tr/iv/v

1.10

av 20/26

vi

0.70

 

vii or rejects

0.55

Sqft/dzn

t/r iv/v

68.00

55/60

vi

36.00

vii

21.00

tr/iv/v

70.00

Wetblue goats

 

USD/dzn fob/ori/c/off

sqft/dzn 55/60

tr/iv/v

70.00

sqft/dzn 70/75

 

75.00

sqft/dzn 55/60

vi

38.00

sqft/dzn 40/50

vii

22.00

 

 

 

Malawi

 

USD/kg cfr/ori/c/off

Kg/pce, 14/16

i/ii

1.65-1.68 cfr/ori/c

Suspension dried goatskins  Lb/100 pcs, 90/100

i/iii

42.00 cfr/ori/c/off

Drysalted hides kg/pce, 9/+ av 10/11

a/b

1.85

Sudan

 

 

Drysalted hides,  kg/pce,  av 10/11

 

USD/kg cfr/ori/c/off

 

a/b

1.85

Zambia
Kg/pce in wetblue (pressed)

 

USD/pce cif/t/c/off

10

 

29.50

15

 

43.50

19

 

53.50

27

 

63.50

 

 Source: Compiled from Sauer Report and other sources
Abbreviations
a/b/c; Private quality indication by supplier; 'a' is not necessarily 1st grade, etc
Av: Average
c: cash payment
cif: Cost, Insurance & Freight
fob: Free On Board
off: Offered
ori: Price payable to supplier in country of origin of the goods
pce : Piece
sqft: Square Feet
t: Price Payable to Traders outside the country of origin of the goods

Leather Related News Flash for the week (July 22 to 28, 2013)

Part I: General News
COMESA/LLPI Experts  Team Technical Advisory  Mission to Zambia and Zimbabwe
COMESA/LLPI Experts team composed of Mr. Nicholas Mudungwe, Cluster Expert, and Dr Mekonnen Hailemariam, Leather Value Chain Expert, conducted a one week technical advisory mission to Zambia and Zimbabwe.

Read more ...

Leather Related News Flash for the week (August 5 to 12, 2013)

Part I: General News
WORLD SHOE PRODUCTION
A new report by IBIS World says global footwear production advanced by an average of 4.2% in the period 2008-2013 to reach a value of 113.6 billion USD. During this period the US and Europe lost some of their importance but emerging countries put the total up.

For the coming five years the figures should improve since the economies of the US and Europe are expected to come out of their recessions while the emerging countries will grow further.

The biggest footwear companies in the world today are all in Asia:
Yue Yuen International Holdings Ltd.
Belle International Holdings Ltd.
Li Ning Company Ltd.
Feng Tay Enterprises.
United States 
Footwear maker Skechers has started to refund 40 million USD to the victims of the deceptive advertisements about the health advantages of its toning shoes (as court decided). The number of cheques that will be sent out to consumers is 509,175
Brazil
The performance of the Brazilian leather sector during the first six months of 2013 resulted in a surplus of US$ 1.18 billion. The numbers indicate that the Brazilian leather exports was determinant to prevent a more negative result in the national trade balance from January to June this year (US$ 3 bi deficit).
Considering only June 2013, sales to the external market reached US$ 197.891 million, a high of 9.4% in relation to the same period last year, according to presented data by the Foreign Trade Secretariat (Secex), with analysis of the Centre for the Brazilian Tanning Industries (CICB).
Considering the current scenario, the president executive of the CICB, José Fernando Bello, evaluates that along the coming months the leather industry has to act with caution. According to him, it has to be considered, the continuing problems in the global economic sphere, such as the issues faced by the euro zone, and the growing concern with the slowdown of the Chinese economy, among other difficulties for the expansion of international trade.
The main destination of Brazilian hides between January to June 2013 were: China / Hong Kong with 35.0 %, Italy with 23.1 %, and the United States with 10.1% (monetary participation).
A matter relating to the Brazilian exclusion in the European Union Generalised Scheme of Preferences (SGP) planned to January of next year is also a concern. "This implies in the increase of rates on Brazilian exports of hides to Europe in the order of 3,5 %, consequently risking the leather exports to the EU", Bello adds. Currently about 35% of Brazilian hide exports are destined to the European continent. The executive emphasises that CICB is articulating bilateral agreements to lessen this issue.
Ethiopia
Ethiopia’s leather industry generated more than USD 120 million in the last fiscal year. Finished leather accounted for the overwhelming majority of this (82 percent), with gloves (16 percent) and other leather products (2 percent) making up the remainder.
Compared with last year, leather exports went up by 11.4 percent, or USD 12.4 million.
Ethiopia makes and exports a large range of leather goods, including shoe uppers, garments, stitched upholstery, backpacks, purses, industrial gloves and finished leather. Ethiopia made USD 51 million from the export of finished skin and hide. This year the figure has almost doubled, having increased to more than USD 100 million. Shoe exports also rose in value, by 91 percent, topping USD 19 million. The export value of gloves and other leather products more than doubled, rising from USD 1.5 million to more than USD 3 million.
 

Rwanda
The 16th International Trade Fair 

Prime Minster, Dr. Pierre Damien Habumuremyi opening the 16th International Trade Fair at Gikondo Expo Ground
Prime Minster, Dr. Pierre Damien Habumuremyi opening the 16th International Trade Fair at Gikondo Expo Ground
The 16th International Trade Fair was opened by His Excellency Dr. Pierre Damien Habumuremyi, Prime Minister of Rwanda, on 25th July 2013 at Gikondo Expo Ground. The Prime Minster in his opening speech said that the 2013 International Trade Fair is a good opportunity for local manufacturers to learn from other countries and improve their products in order to be more competitive. He reiterated that the COMESA manufacturing sector shall be promoted through linking business to the COMESA market of 440 million consumers.
The theme of this 16th International trade fair is "linking businesses to markets; promoting the manufacturing sector in the COMESA region".
Over 21 countries from Africa, Asia and middle east participated in this  trade fair; COMESA-LLPI  sponsored (partially) the participation of 8 companies drawn from Ethiopia, Kenya and Uganda.
The 1st  COMESA Manufacturers Regional Dialogue, organized by the COMESA Business Council, was also held in Kigali-Rwanda for 2 days prior to the opening of the Fair. Experts, Manufacturers’ Associations and Manufacturers from the COMESA Region and representatives on International Partner Organizations participated in the two days Dialogue.
The theme of the dialogue was "Linking businesses to markets; Unlocking the potential of  the manufacturing sector in the COMESA Region". More than 10 discussion papers were presented and panel discussions and adoption of recommendation were made.
COMESA/Leather and Leather Products Institute was represented by two of its Experts, Mr Nicholas Mudungwe, Cluster Expert, and Dr. Mekonnen Hailemariam, Leather Value Chain Expert. Mr Nicholas Mudungwe presented a paper entitled “Unleashing the Potential of the COMESA Leather Value Chain: the Cluster Approach.
Leather excellence centre  opened in Chennai
Clariant, a world leader in specialty chemicals  said it has opened a new leather excellence centre, in Ranipet, Chennai.  "We are committed to the long term development of our services and products for India's leather sector. We see the country's leather related businesses growing and we expect to see above average growth for our products and services.  "We are looking for double-digit growth of the business in India," Clariant's global leather business Unit Head Oliver Kinkel said in a statement issued.  Clariant already has major production sites at Kanchipuram, Tamil Nadu and Roha, Maharashtra.
COTANCE calls for volunteers to determine leather’s carbon footprint
COTANCE, the European Leather Industry Association, is to submit an application to set up a pilot initiative to determine the environmental footprint of leather. If successful the pilot initiative will win funding from the European Union. However, the application has to be submitted soon and COTANCE has asked for tanners to become involved by sending letters of support by July 24, 2013.


At the core of its application is COTANCE’s conviction that the start of the lifecycle of leather is in the slaughterhouse, where hides and skins are recovered as a by-product of the meat industry. “There should be no carry-over of any environmental burden from livestock breeding to the leather industry,” the organisation insists.

General secretary of COTANCE, Gustavo González-Quijano, said on announcing the development: “This is a unique opportunity for the global leather industry to get fair Product Category Rules (PCR) that recognise the system boundaries that the UNIDO leather and leather products panel overwhelmingly endorsed last autumn in Shanghai for our sector. In this context the leather industry is challenging conventional thinking. Only through a united industry position will we succeed.”


More broadly, the European Commission wants to test the scale of the environmental footprinting of products across the EU and has agreed to fund a number of pilot initiatives to do this. It has invited companies and organisations responsible for various product categories to volunteer to take part; COTANCE wants the leather industry to be one of the sectors to volunteer.


This could lead to an official framework for “hammering out” the sector’s Product Category Rules, Mr González Quijano said, adding that the framework would have global reach. He said an official framework in the European Union could be “an important parameter” and “a trendsetter” for the global leather industry.

He called on other leather industry bodies around the world and “like-minded stakeholders” everywhere to send letters of support for COTANCE to present with its application, saying: “The more international and inter-sector support COTANCE can show at the time of application the more influential leather can become in the process. This is a win-win exercise where the leather industry is the real winner.

COTANCE has drawn up a template for a letter of support and has asked companies and organisations all over the world to respond quickly, putting their details into the template, creating their own document on their own headed notepaper and sending it back to COTANCE for submission to the EU.

Organisations or individuals who believe that they can play a part in helping COTANCE develop environmental Product Category Rules for leather by being part of the technical secretariat the organisation wants to set up, can express this extra support in their letters.

Source: http://www.leatherbiz.com/fullitem2.aspx?id=130491



Part II: Some Indicative Prices of Leather and Leather Products

Product name

Grade

USD/sqft fob/ori/c/off

Ethiopia

 

 

full aniline

i-iii

2.60-3.00

iv

1.95-2.60

v

1.70-1.95

Semi aniline and golf leather

i-iii

2.10-2.70

iv

1.75-2.05

v

1.45-1.75

Resin lining

A

1.25-1.50

 

B

0.95-1.20

Fully finished Cow upper leather

TR (i/iv)

1.05-1.50

 

v

0.80-1.05

aniline lining

A

0.90-1.15

 

B

0.70-0.90

Kenya/Uganda

 

 

Suspension dried hides

Weight/pce 8/12  lb

2.80 nominal

 

iv grade

2.20  nominal

 

v grade

1.75  nominal

Wetsalted hides (Kenya)

 

 

 

i/ii

1.65

Wetblue hides

 

 

Sqft/pce =av 23/27

tr/iv/v/vi

1.00-1.10

av 31/33

tr/iv/v

1.10

av 20/26

vi

0.70

 

vii or rejects

0.55

Sqft/dzn

t/r iv/v

68.00

55/60

vi

36.00

vii

21.00

tr/iv/v

70.00

Wetblue goats

 

USD/dzn fob/ori/c/off

sqft/dzn 55/60

tr/iv/v

70.00

sqft/dzn 70/75

 

75.00

sqft/dzn 55/60

vi

38.00

sqft/dzn 40/50

vii

22.00

 

 

 

Malawi

 

USD/kg cfr/ori/c/off

Kg/pce, 14/16

i/ii

1.65-1.68 cfr/ori/c

Suspension dried goatskins  Lb/100 pcs, 90/100

i/iii

42.00 cfr/ori/c/off

Drysalted hides kg/pce, 9/+ av 10/11

a/b

1.85

Sudan

 

 

Drysalted hides,  kg/pce,  av 10/11

 

USD/kg cfr/ori/c/off

 

a/b

1.85

Zambia
Kg/pce in wetblue (pressed)

 

USD/pce cif/t/c/off

10

 

29.50

 15

 

43.50

19

 

53.50

27

 

63.50

 

 Madagascar

 

Wetsalted cattle hides

Zebu type

Kg/pce

Flay

selection

previous price

USD/kg cfr/ori/c

 

9/11

 

70/30 i/ii

 

nq

 

13/15

good h/f

70/30 i/ii

 

nq

 

18/22

h/f

80/20 i/ii

 

nq

 

21/24

   

1.27-1.32

1.23-1.25

 


 
Source: Compiled from Sauer Report and other sources
Abbreviations
a/b/c; Private quality indication by supplier; 'a' is not necessarily 1st grade, etc
Av: Average
c: cash payment
cif: Cost, Insurance & Freight
fob: Free On Board
off: Offered
ori: Price payable to supplier in country of origin of the goods
pce : Piece
sqft: Square Feet
t: Price Payable to Traders outside the country of origin of the goods

Leather Related News Flash for the Week (August 26- 31, 2013)

Part I: General News


Mr. Tezera Ketema Nominated for the Premier's Awards

Mr. Tezera Ketema
MrTezera Ketema, a member of the Regional Leather Sector Core Team and a Canadian National of Ethiopian origin, is nominated for the Premier's Awards in “Business” in Ontario, Canada. The Premier's Awards honor the important social and economic contributions college graduates make to Ontario. The Awards were launched in 1992 by the College Compensation and Appointments Council to mark the 25th anniversary of Ontario's college system of education. They hold the same distinction as the Order of Ontario.

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COMESA/LLPI Made Briefing During the Training of Trainers Workshop at Makarare University Business School in Uganda

On Monday Nov. 10, 2014 Prof. Mekonnen Hailemariam, Leather Value Chain Expert at LLPI, participated and also made a brief presentation about COMESA/LLPI to 15 Trainers from Malawi, Zambia and Uganda who are participating a training of trainers workshop organized by Makarare University Business School.

The mission was part of COMESA/LLPI’s endeavor to promote and sustain the development of the Regional leather sector.

COMESA/LLPI and Makarare University Business School Signed MoU

COMESA/LLPI and Makarare University Business School Signed MoU on November 12, 2014 at Makarare University Business School in Uganda.

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COMESA/LLPI in Collaboration with EIFCCOS Conducted Training for Footwear SMEs

COMESA/LLPI in Collaboration with EIFCCOS Conducted Training for Footwear SMEs

COMESA/LLPI in Conjunction with EIFCCOS Organized Training in Business Record Keeping to SMEs Successfully Completed

In July 2014, COMESA-Leather and Leather Products Institute (COMESA/LLPI) crafted a Strategy for Ethio-International Footwear Cluster Cooperative (EIFCCOS) through a participatory process. The strategy was subsequently validated on 30th September 2014. The Assessment which was undertaken as part of the strategy formulation process identified that the majority of SMEs were setting the price of four of their five footwear models at a loss. This problem was trussed to their limited capacity to keep financial records, under- costing and pricing. To address this gap, COMESA/LLPI organized training on Costing, Pricing and Business Record keeping for SMEs working under EIFCCOS from 17th to 21st November 2014 at the Ethiopian Management Institute, in Addis Ababa, Ethiopia.

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