COMESA
Leather and Leather Products Institute
(COMESA/LLPI)

Member of: IULTCS    International Council of Tanners

Leather for Health, Wealth and Luxury

Ethiopia

Country: Ethiopia
 
Country Information
Country Size :   1,104,300 Square kilometers
Population: 83 millions
Currency: Ethiopian Birr,
Languages: Amharic (Official), Oromiffa, Tigrigna, Somaligna, Sidamgna, Wolaitigna, Afarigna, Hadiyigna (among 80 other languages spoken), English
Capital City: Addis Ababa
GDP(US$): 29.7 billions (2010 est.)
Economy-Overview: Ethiopia's economy is based on agriculture, which accounts for 41% of GDP, . 75% of exports and 80% of total employment.
Main Economic Sectors: Ethiopia's economy is dominated by agricultural production.
Main Exports: Coffee, gold, Cut flowers, leather products, live animals, oilseeds
Main Imports: Food items, petroleum and petroleum products, chemicals, machinery, motor vehicles, textiles.
Main Industries: Food processing, beverages, textiles, chemicals, metals processing, cement, leather processing
Natural Resources  
International Organization Membership: ACP, AFDB, AU, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, IGAD, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO, ITU, MIGA, NAM, ONUB, OPCW, PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO (observer).
Infrastructure:  
Other:  
Livestock Information
Cattle Population : 52 million
Sheep Population: 27 million
Goat Population: 22 million
Camel Population: 2.3 million
Other Populations: NA
Cattle Off take Rates: 7%
Sheep Off rake Rates: 30%
Goat Off take Rates: 31.5%
Camel Off take Rates: 2%
Livestock Policy: Animal and animal products Quarantine laws and regulation exists. An analysis of the Ethiopian LLPI was made and taking into consideration the global context, a Master Plan was developed for the Leather and Leather Products Industry (LLPI) applying the “Pull” concept. The Business Plan applies market segmentation for the three leather products sub-sectors and proposes target countries for exports. The resource and logistical requirements of the programme are discussed, as are the roles to be played by the different stakeholders in implementing the plan targets, together with the coordination mechanisms that are required to be established.  The strategy proposed is to follow the “Top-Down (Pull)” Approach (TDA). This approach requires that the development of footwear should “pull” the tanning sector to produce more, better quality finished leather; resulting in turn in an increase in the demand from the tanners for more, better quality hides and skins.
Slaughter Facilities: Ethiopia has 6 export and 175 slaughter houses, 20% of slaughter 80% animal slaughter: backyard
Hides and Skins
Quantity Hides: 3.7 million
Quantity Sheep: 8.7 million
Quantity Goat: 8.1 million
Annual Collection Level Hides: 47
Annual Collection Level Sheep: 85
Annual Collection Level Goat: 85
Flaying methods:

Hand/Knife Flaying, Pulling (rare), Machine

Flaying (rare)
Preservation Methods:  
Grading Systems, Available Grades and Percentage of each: Four grades: I to IV; any hide or skin below grade IV is rejected, air dried based on 40/50/10 proportion for grades I,II and III
Hides and Skins trade channels: - Primary (farmers) or households, small collectors, medium merchants, big suppliers, Tanners
- Abattoirs, traders (tanners)
Market(%): Local 100%
Annual Export Value(US$): NA
Average Market Bovine Price: NA
Average Market Sheep Price: NA
Average Market Goat Price: NA
Tanning
Number of Tanneries: 26
Installed Tanning Capacity: 7200 pieces of hides/day, 127,500 pieces of skins/day
Tanneries in Operation: 26
Utilized Capacity: Hides 72.2%, Skins 52.2%
Output of the Industry: 4,709 pieces of hides/day and 88,961 pieces of skins/day
Number of Employees: More than 5000
Market (%): International 80% and local 20%
Major markets: 60% Europe, 30% Asia and 10% USA and Africa
Estimated Annual Export Value: 104.1 million dollars (2010 est.)
Footwear
Number of Footwear Factories: 20 formal 1000/3000 informal producing units
In Operation: 20 formal 1000/3000 informal producing units
Manufacturing Capacity: Installed: >8 million pairs
Utilized: >7 million pairs
Number of Employees: >4000
Market (%): International >1% and local 98%
Estimated Annual Export(US$): 8.8 million
Leather Goods
Number of Leather Goods and Garment Factories:

850 leather manufacturing enterprises

In Production: 850 leather manufacturing enterprises
Manufacturing Capacity: NA
Number of Employees: 6,000
Market (%): NA
Estimated Annual Export Value(US$): NA
SWOT Analysis
Strengths: · Easily trained labour
· Considerable resource base
· Hides - fine grain pattern and good fiber structure and internationally known for quality upper leather
· Sheep skin - world's finest and compacted texture globally well recognized as excellent raw materials for the production of high quality dress glove, sports glove and garment
· Goat skins - classed as Bati-genuine (the international name of high quality goats skin and Bati type with higher great demand in the international fashion sued leather.
Some tanners pulled out them selves from export of semi processed and already started export of finished leather and others are being on the track.
Weaknesses: · Highly Skilled man power in leather technology, market intelligence- very few not to say inexistent etc
· High technology- hardly available
· Waste treatment plants- just starting to establish
· Low productivity, efficiency
Opportunities: · Priority sector well recognized by the Government
· Investment opportunity
· Hides & skins, leather and leather products have highly significant in the global trade
· The high demand for Ethiopian hides and skins
· Confidence of international development partners (ITC, UNIDO, USAID, CDE,CFC, DTZ, etc.)
Threats: · Poor animal husbandry
· The growing threats of spread of skin defect known as cockle or “Ekek” in Amharic · Absence of extension strategy for raw hides and skins improvement
· Flay cuts problems
· Inadequate slaughterhouses
· Poorly organized supply collection systems

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COMESA - Leather and Leather Products Institute (LLPI)
Office of the Executive Director
P.O.BOX: 2358 Code 1110
Tel. +251-11-439 0928/0327/1319
Fax:+251-11-439 0900
Email : This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it.
Web site : WWW.COMESA-LLPI.INT
Addis Ababa, Ethiopia.