ALLPI Member States:
ALLPI Member States
In 2011, total revenue generated by the leather industry was estimated at approximately US.2 million and industry’s contribution or value addition at US.7 million. The largest contributions to total sales and margin come from shoe retailing and shoe manufacturing, the two levels of the value chain where there is more value addition. About 1,168 companies are estimated to actively work in the leather value chain, providing employment to approximately 5,610 people.
The strategy also estimates the impact of the leather value chain at the farmer level, by calculating total revenues generated by the hides and skins only. According to price information collected during rural workshops, value chain stakeholders estimated that the value of total hides and skins sales and revenue for the farmer population can range from USmodule million for low quality hides up to USmodule.9 million for medium quality and US.9 million for high quality hides. Therefore, the issue of quality is of paramount importance and if properly addressed, as proposed in the strategy, it can help increase the income and improve livelihoods of rural communities and smallholders. Additionally, the strategy supports initiatives aimed at encouraging artisanal tanning and value addition for niche products at the community level.
Weaknesses of Zimbabwe leather value chain:
- Lack of trust, transparency and coordination among value chain stakeholders;
- Lack of affordable finance and/or innovative financial mechanisms;
- High cost price of raw materials and inputs for the industry;
- Shortage of hides and skins and poor quality leather, mainly due to poor husbandry practices and improper flaying techniques, as well as an inadequate collection and storage system; and
- Low capacity utilization of the leather industry and poor diversification, quality and design of leather products.
On the other hand, strengths of Zimbabwe leather value chain include:
- Quality of management, particularly at manufacturing;
- Highly educated and skilled labor force at all stages of the value chain;
- An important livestock sector and plenty of resources of exotic skins.
Source : Zimbabwe Leather Sector Strategy (2012-2017)
Country: Zambia Country Information Country Size : 750,000 Km2 Population: 11 million Currency: Zambian Kwacha (ZmK) Languages: English Capital City: Lusaka GDP(US$): 352 Million Economy-Overview: Zambia’s economic performance improved in 2004 with real Gross Domestic Product (GDP) growth estimated at 5.0% from 4.9% in 2002. This was driven by strong expansion in mineral and agricultural production as well as generally favourable external sector conditions. The local currency (Zambian Kwacha remained stable against the United States dollar, while interests rates edged downwards. The average annual inflation also declined in 2004. Main Economic Sectors: Agriculture, tourism, manufacturing and mining Main Exports: Non Traditional Exports mainly wet blue leather, finished leather, skins (crocodile), high value crops, copper, cobalt, electricity, tobacco, flowers, cotton Main Imports: Textile, processed meats, milk and hardware. machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs Main Industries: Agriculture, tourism, mining, and manufacturing Natural Resources Zambia has abundant natural resources which include 42 million hectares of arable land out of which only 14% is under cultivation; adequate underground water, rivers, dams and lakes to irrigate 500,000 hectares of which only 65,000 hectares (13%) is developed; and vast grasslands and forests for timber and honey production. The country has also abundant sunshine with enough rainfall ranging from 650mm to 1,800mm per annum suited for the production of a wide range of crops, livestock, fish, timber and honey. International Organization Membership: ACP, AFDB, AU, C, FAO, G-77, IAEA, IBRD, ICAO, ICCT, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, ISO (correspondent), ITU, MIGA, MONUC, NAM, ONUB, OPCW, PCA, SADC, UN, UNAMSIL, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNMIK, UNMIL, UNOCI, UPU, WCL, WCO, WHO, WIPO, WMO, WTO, WTO Infrastructure: The Republic of Zambia is a land locked country and it borders eight countries, namely Zimbabwe, Namibia, Botswana, Mozambique, Malawi, Tanzania, the Democratic Republic of Congo and Angola. Zambia is connected to these countries by good international transport and road network, railway system, three airports and telecommunication network. Other: Livestock Information Cattle Population : 2,500,000 Sheep Population: 90,000 Goat Population: 1,000,000 Camel Population: Other Populations: Cattle Off take Rates: 8% Sheep Off rake Rates: 20% Goat Off take Rates: 35-40% Camel Off take Rates: Livestock Policy: The livestock policy aims at conservation of indigenous breeds; improving the productive efficiency of livestock; disease control (vaccination of cattle against Foot and Mouth Disease (FMD), Contagious Bovine Pleural Pneumonia (CBPP) and control of East Coast Fever (ECF)/Corridor Disease); promoting good and hygienic practices in meat processing; facilitating the efficient marketing of livestock, livestock products and livestock by-products and promoting investment in the livestock industry. Slaughter Facilities: 8: commercial abattoirs
> 250: slaughter slabs
Hides and Skins Quantity Hides: 180,000 Quantity Sheep: 100,000 Quantity Goat: Annual Collection Level Hides: 90% Annual Collection Level Sheep: Annual Collection Level Goat: 90% Flaying methods: Both machine and hand flaying. But hand flaying is more prominent. Preservation Methods: Most hides are preserved by salting. Some hides are preserved by chilling and biocidal. Grading Systems, Available Grades and Percentage of each: Grade I: 21%
Grade II: 42%
Grade III: 24%
Grade IV: 7%
Hides and Skins trade channels: Through South Africa, Tanzania and Malawi. Market(%): 90% hides: export
10% hides: local markets
Annual Export Value(US$): US$ 6 million (2003) Average Market Bovine Price: US$ 0.80 - 1.40 / Sqft (local market) Average Market Sheep Price: Average Market Goat Price: US$ 0.80 - 1.40 / Sqft (local market) Tanning Number of Tanneries: 5 Installed Tanning Capacity: 1,500 hides per day (wet blue)
2,000 hides per day (finished leather)
Tanneries in Operation: 4 Utilized Capacity: 40% Output of the Industry: Wet blue: 90%
Number of Employees: 420 Market (%): 90% export
Major Markets: China, Europe, Central Africa.
Estimated Annual Export Value: US$ 7 million (2003)
Country: Malawi Country Information Country Size : 118,485 sq km Population: 14.9 millions Currency: Kwacha(D)(MWK) Languages: official - English, national - Chichewa Capital City: Lilongwe GDP(US$): 5.1 billions Economy-Overview: A small intensely rural, agricultural economy. Agriculture contributes 36% of the GDP and employs more than 80% of the total labour force. Main Economic Sectors: Agriculture, Manufacturing, Fisheries, Tourism. Main Exports: Tobacco 53%, tea, sugar, cotton, coffee, peanuts, wood products, apparel Main Imports: Major petroleum products, Vehicles, fertilizers, iron or steel, electrical machinery, equipment, Pharmaceutical products, Dairy products, Mineral fuels. Main Industries: Tobacco,, Brewing, Cement, Food Processing, Tourism Natural Resources International Organization Membership: Commonwealth, SADC,COMESA,AU, U N, WTO, OIE Infrastructure: Two international airports, good road network even in rural areas, Lake Malawi waterway, good communication facilities. Other: Livestock Information Cattle Population : 990,000 Sheep Population: 213,000 Goat Population: 3,953,000 Camel Population: None Other Populations: 570,000 (donkeys, rabbits, pigs) Cattle Off take Rates: 10.4% Sheep Off rake Rates: 25% Goat Off take Rates: 29.5% Camel Off take Rates: None Livestock Policy: To sustain modern livestock breeding & production to meet domestic demand for animal products such as meat and dairy products through provision of sustainable animal health and livestock extension services. The Government has also a deliberate policy of broadening livestock ownership to the rural community so that the livestock sector contributes to poverty reduction efforts and food security. The animal health policy emphasises surveillance and prevention of spread of trans-boundary , trade sensitive livestock diseases to safeguard the livestock industry. Slaughter Facilities: Number of abattoirs: 3
Hides and Skins Quantity Hides: 0.2 million pieces Quantity Sheep: 0.1 million pieces Quantity Goat: 2.0 million pieces Annual Collection Level Hides: 90% Annual Collection Level Sheep: 95% Annual Collection Level Goat: 95% Flaying methods: Hand flaying (using flaying knives ); flaying by pulling, pneumatic de-hiders. Preservation Methods: Air (ground) drying, frame/suspension drying; wet salting. Grading Systems, Available Grades and Percentage of each: Grade I: Abattoirs (hides): 60% / Abattoirs (skins): 75% / Smallholder (hides): 30% / Smallholder (skins): 80% / Export sector (raw): 40%
Grade II: Abattoirs (hides): 10% / Abattoirs (skins): 10% / Smallholder (hides): 10% / Smallholder (skins): 10% / Export sector (raw): 40%
Grade III: Export sector (raw): 20%
Grade IV: Smallholder (hides): 10%
Reject system: Abattoirs (hides): 30% / Abattoirs (skins): 15% / Smallholder (hides): 50% / Smallholder (skins): 10%
Hides and Skins trade channels: Farmer to Butcher/Abattoir to Collector/Buyer to Trader to Exporter.
Abattoirs also export directly to international & regional markets.
Market(%): 80% International and 20% Regional & local (only raw hides and skins)
Regional (Tanzania, Zambia, South Africa, Zimbabwe)
International (Hong Kong, China, Italy, Greece, Portugal)
Annual Export Value(US$): NA Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 1 Installed Tanning Capacity: 300 hides/day
Tanneries in Operation: NA Utilized Capacity: NA Output of the Industry: Expected to produce 77,000 sqft of finished leather/year Number of Employees: 60, at the time it was operational Market (%): 100% local Estimated Annual Export Value: None Footwear Number of Footwear Factories: 2 In Operation: 2 Manufacturing Capacity: 7000 pairs per month Number of Employees: 176 Market (%): 7000 pairs per month Estimated Annual Export(US$): None Leather Goods Number of Leather Goods and Garment Factories: None In Production: None Manufacturing Capacity: None Number of Employees: None Market (%): None Estimated Annual Export Value(US$): None SWOT Analysis Strengths: -A fairly sound macro-economic policy
-Stable and democratic political environment
-A thriving livestock industry
-Absence of trade-sensitive livestock diseases
-Existence of community structures that offer a conducive environment to undertake community-based activities aimed at improving the hides and skins sector and
-Presence of good communication facilities and presence of a good extension system for delivery of livestock services.
Weaknesses: - Inadequate quality material
- Limited formal knowledge in hides, skins and leather issues
- Inadequate capacity in the sector
- De-motivated government extension staff
- Lack of value addition to the raw material
- Inadequate/crumbling slaughter house infrastructure
- Low disposable income of the population (widespread poverty)
- Weak institutional support
- Weak and unreliable markets
- Inadequate conducive policies to support the sector
- Inadequate enforcement of regulations in the hide and skins trade
Opportunities: - Abundant raw materials
- Unexploited industry
- Very healthy competition in the field (collection of Hides and Skins)
- High local demand for finished leather for artisan manufacturing of leather articles
- Fairly good investment environment for the sector
- Cheap labour force
- An emerging middle class society that is fashion conscious
- A highly liberalized economy and renewed interest of the donor community in the livestock sub-sector
- Some signals of strong political will to support the sector.
Threats: - Chaotic markets
- Too many foreign buyers on the market who compromise on quality
- Lack of investment in the sector
- High staff attrition in the livestock sub-sector due to the HIV/AIDS pandemic
- Unregulated, massive imports of second hand shoes and other leather goods
- A dwindling livestock population
- A booming plastic shoe industry
- Unregulated trade in the leather sector
- Strict environmental and sanitary demands/regulations on the international market.
Country: Rwanda Country Information Country Size : 26,338 sq km Population: 11.7 (2012 est.) Currency: Rwandan franc(RWF) Languages: Kinyarwanda (official), English (official), French (official), Kiswahili used in commercial centres and by the Army Capital City: Kigali GDP(US$): .46 billion Economy-Overview: Rwanda is a rural country with about 90% of the population engaged in (mainly subsistence) agriculture. It is the most densely populated country in Africa and is landlocked with few natural resources and minimal industry. Primary foreign exchange earners are coffee and tea. Rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre-1994 levels, although poverty levels are higher now. GDP has rebounded and inflation has been curbed. Despite Rwanda's fertile ecosystem, food production often does not keep pace with population growth, requiring food imports. Rwanda continues to receive substantial aid money and received IMF-World Bank Heavily Indebted Poor Country (HIPC) initiative debt relief in 2005. Main Economic Sectors: Agricultural sector contributes 44 percent of GDP and 70 percent of exports, cement, small-scale beverages, soap, furniture, shoes, plastic goods, textiles, cigarettes. Main Exports: Coffee, tea, hides, tin ore Main Imports: Foodstuffs, machinery and equipment, steel, petroleum products, cement and construction material Main Industries: Cement, small-scale beverages, soap, furniture, shoes, plastic goods, textiles and cigarettes Natural Resources International Organization Membership: ACCT, ACP, AfDB, AU, CEPGL, COMESA, FAO, G-77, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, ISO (correspondent), ITU, MIGA, NAM, OPCW, UN, UNCTAD, UNESCO, UNIDO, UNMIS, UPU, WCL, WCO, WHO, WIPO, WMO, WToO, WTO Infrastructure:
Airports - with paved runways:
over 3,047 m: 1
914 to 1,523 m: 2
under 914 m: 1 (2005 est.)
Airports - with unpaved runways:
total: 5 914 to 1,523 m: 2
under 914 m: 3 (2005 est.)
Roadways:total: 12,000 km
paved: 996 km
unpaved: 11,004 km (1999 est.)
Lake Kivu navigable by shallow-draft barges and native craft (2004)
Ports and terminals: Cyangugu, Gisenyi, Kibuye
Telephones - main lines in use:23,200 (2002)
§ The telephone system primarily serves business and government. The capital, Kigali, is connected to the centres of the provinces by microwave radio relay and, recently, by cellular telephone service; much of the network depends on wire and HF radiotelephone international: country code - 250; international connections employ microwave radio relay to neighbouring countries and satellite communications to more distant countries; satellite earth stations - 1 Intelsat (Indian Ocean) in Kigali (includes telex and telefax service)
Telephones - mobile cellular: 134,000
§ Rwanda has mobile cellular service between Kigali and several provincial capitals (2003)
Other: Livestock Information Cattle Population : 1.9 million Sheep Population: 0.55 million Goat Population: 2.03 million Camel Population: None Other Populations: Pig: 326,652; Poultry: 2,841,399; Rabbits: 520,057 Cattle Off take Rates: 14% Sheep Off rake Rates: 27% Goat Off take Rates: 27% Camel Off take Rates: NA Livestock Policy: -Create supportive infrastructure
-Policy frame work for enhancing the growth of national livestock resources.
-Launch census and quality and quantity enhancement programs.
-Promote and support investment in animal husbandry, etc.
-Create sustainable supply chain
-Promote and support involvement of women and the youth in trading in hides and skins.
-Provide access to finance for business in this sector.
-Establish standard for hides and skins and enforce.
-Create network of collection sites and transportation network, etc
Slaughter Facilities: 3 industrial, 36 semi-industrial and 349 rural slabs Hides and Skins Quantity Hides: 140,521 pieces Quantity Sheep: 126,894 pieces Quantity Goat: 341,270 pieces Annual Collection Level Hides: 80% Annual Collection Level Sheep: 65% Annual Collection Level Goat: 65% Flaying methods: Machine and Hand flaying for hides.
Pulling for skins.
Preservation Methods: Salting and air/wire drying. Grading Systems, Available Grades and Percentage of each: NA Hides and Skins trade channels: Butchers - Buyers – Dealers - Tanneries Market(%): NA Annual Export Value(US$): NA Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 1 Installed Tanning Capacity: Wet blue: 4,000 skin and 200 hides per day
Finished leather: 1120 Sq ft skins and 560 Sq ft hide
Tanneries in Operation: 1 Utilized Capacity: 100% Output of the Industry: Wet blue: 3000 skin and 150 hides per day
Finished leather: 1120 Sq ft skins and 560 Sq ft hides
Number of Employees: 75 Market (%): NA Estimated Annual Export Value: 1.5 Million (2005 est.) Footwear Number of Footwear Factories: In Operation: Manufacturing Capacity: Number of Employees: Market (%): Estimated Annual Export(US$): Leather Goods Number of Leather Goods and Garment Factories: In Production: Manufacturing Capacity: Number of Employees: Market (%): Estimated Annual Export Value(US$): SWOT Analysis Strengths: .Animals not used for farming; have relatively less pre-mortem defects.
.40% of the slaughtering done in abattoirs; enables quick raw stock delivery to tanneries and monitoring flow.
.Relatively less other pre-mortem defects; no branding of animals; relatively easier to control
.All areas known to be important sources of raw stock easily accessible for mobilization.
.Inherently thicker hides and skins allow splitting, unit cost reduction and innovative production
.Thick goat skins with smooth grains make them preferable over others especially for footwear and leather goods.
.Existence of a large number of artisans working in leather goods sector; a sound basis for future development of SMEs.
.Political will and commitment to develop the sector
.The presence of a sectoral association which can be used as a tool to galvanize joint efforts between the PS and the government.
Weaknesses: .Lack of appropriate market structure and policy framework that delivers raw stock to tanneries.
.Lack of the necessary skills in flaying, curing, storing and transporting raw stock causing substantial post mortem defects.
.Weak or non-existence of an organized leather goods industry of any level to integrate with the only tannery in the country.
.Absence of or difficulty in accessing finance to support the development of SMEs in the sector.
.Lack or absence of a marketing framework that can supply machinery and components to the SMEs that engage in this area.
.Absence of a distribution network that would relieve artisans producing goods to stock and ensure smooth engagement in production of finished goods.
.Lack of institutional framework to stop illegal purchase of raw stock and shipping it to neighbouring countries
.Only one tannery lacking in requisite equipments and proper effluent treatment facilities.
.Tannery misplaced in the centre of the city which will require substantial investment in waste treatment as a compliance to GMP.
Opportunities: .Ideal location in the centre of regional markets with appreciable disposable income having no better leather sector.
.Existence of known demand in the regional markets for special products like military boots
.Further supply of raw materials from neighbouring countries once attractive marketing instruments and thriving industry emerges here.
.Regional integration providing access to bigger market.
.Country potentially a tourist destination which can create considerable market for SMEs engaged in production of leather goods
.Presence of unique ecological attributes that can be used for branding products with exclusivity.
.Possibility of accessing international T/A for efforts to enhance the leather sector in association of the country's poverty alleviation strategy.
Threats: .A beginner in a mature and competitive market requiring extremely specialized and well integrated infrastructure
.Existence of traditional cross boarder trade in which raw stock bought on the local leaves the country through formal and informal arrangements.
.Land locked country; unreliable transportation facilities and high cost when available for moving goods and services to port areas.
.Reliance on foreign sourcing of skilled manpower and absence of reliable technology vendors.
.Challenges of image building post 1994 war.
.Existence of a large second hand shoes market at formal and informal level.
Country: Eritrea Country Information Country Size : 124,320 sq km (including Dahlak archipelago) Population: 5.3 millions Currency: Nakfa (ERN) Languages: Tigrinya, Tigre, Arabic and English Capital City: Asmara GDP(US$): .117 billion (World Bank, 2010) Economy-Overview: Eritrea’s economy is largely based on subsistence agriculture, which employs 70-80% of the population. Eritrea’s industrial sector accounts for 23% of GDP and employs 10% of the workforce, but has declined since the halting of trade with Ethiopia since 1998. Main Economic Sectors: Industry is the second largest sector after the service sector Main Exports: livestock, sorghum, textiles, food, small manufactures Main Imports: machinery, petroleum products, food, manufactured goods Main Industries: The manufacturing industries include the ones producing glass, leather, processed foods, cotton, textile, liquors, other beverages, marble, recycled plastics, metals, and rubber goods Natural Resources International Organization Membership: United Nations (UN), African Union (AU), Inter-Governmental Authority on Development (IGAD) , Common Market for Eastern and Southern Africa (COMESA). Infrastructure: - Massawa and Assab port towns
- Massawa & Asmara International air ports
- There are Eritrean, Lufthansa, Yemenia and Egypt Air-air lines in operation
- There are about 6990 km roads, out of which 874 km are paved, and the rest are all weathered and dry weathered roads.
- Transport is possible by Air, sea & land.
- Communication is done by tel/mobile, fax, e-mail, internet and postal services.
Other: Livestock Information Cattle Population : 1,975,000 Sheep Population: 2,284,000 Goat Population: 1,758,000 Camel Population: 76,000 Other Populations: Cattle Off take Rates: 15 Sheep Off rake Rates: 28.7 Goat Off take Rates: 32.2 Camel Off take Rates: 19.7 Livestock Policy: Policies of the livestock sub-sector:
Government activities are being restructured to support the efforts of the private sector focused on small-holders.
a) The involvement of the Government in the animal resources sub-sector is directed towards increasing productive efficiency, especially among small holder farmers, in order to achieve the following policy objectives:
(i) Increase the supply of animal origin proteins and nutrients
(ii) Promote livestock ownership and increase production
(iii) Stimulate both small and medium scale processing of livestock products and by0products
(iv) Encourage export of animals, animal products and by-products
(v) Increase supply of draught power.
b) Government will undertake appropriate animal research programmes aimed at increasing animal productivity and production in various ecological zones. These will include research activities in animal nutrition, breeding husbandry and health.
c) In order to streamline and improve the effectiveness of the delivery of public livestock services and the implementation of public functions and responsibilities linked to the sub-sector, the existing ARD structure will focus on strengthening of the Regional livestock services capabilities that allow filtration and monitoring to the village level, and subject matter specialist back up services.
d) The Government will endeavor to ensure that animal disease prevention and control measures against economically important diseases are carried out throughout the country in order to significantly reduce losses of animal from disease situations , and to enable animal products penetrate the international market without restrictions.
e) The Government will take the responsibility to controlling nationally important diseases, in particular class 1 scheduled diseases such as rinderpest, Foot and Mouth, CBPP, CCPP, rabies, PPR and/or any other disease which may require state intervention in the national interest.
f) Clinical treatment, vaccination and inoculations against other scheduled disease such as heamorrhagic septicaemia, Brucellosis, Newcastle, African horse sickness, Trypanosomiases, Blackleg, Pox, and activities such as Artificial insemination, bull testing, and PD which have immediate direct benefit to the farmer will be the responsibility of the individual farmer.
g) The Government will provide facilities for laboratory diagnostic services for all disease, but farmers have to pay for them except for nationally important disease or any other declared necessary for the national interest.
h) Government will be responsible for all aspects of veterinary public health such as the inspection of meat and meat by-products, and milk hygiene and quality control animal origin foodstuffs, and control use of veterinary drugs, and biologics.
i) Government will review existing legal and regulatory framework, and introduce new legislation to accommodate privatization of the delivery of services to the animal resources sub-sector.
j) The Government will encourage private veterinary practice and community based animal health care in order to provide farmers ready access to both animal health and production services.
k) Fiscal, budgetary and skill constraints hindering the public delivery of livestock services will be reduced through the design and implementation of cost recovery systems paid for by the direct beneficiaries and that manpower development programme would produce required skills.
l) Government will take the responsibility of researching to evolve livestock breeds suitable for local conditions, and introduction of improved production techniques such as the use of suitable forage species, utilization of by-products.
m) Government will ensure appropriate land use planning in order to improve animal nutrition through the allocation of adequate grazing lands in the various ecological zones with emphasis in the lowlands.
n) Government will facilitate to the private sector export and processing of animal products through high standard inspection services.
N.B.: The regulatory department of the Ministry of Agriculture has been working, and is still working with this policy. Nevertheless this policy is now under revision, and there is an expectation of a new revised policy in the near future.
Slaughter Facilities: 5 slaughter houses
Hides and Skins Quantity Hides: 0.2 million Quantity Sheep: 0.6 million Quantity Goat: 0.7 million Annual Collection Level Hides: 46% Annual Collection Level Sheep: 94% Annual Collection Level Goat: 91% Flaying methods: · Semi-mechanical method of flying in the slaughter houses.
· Traditional (manual) method of flaying in the areas where slaughter houses are not available
Preservation Methods: Grading Systems, Available Grades and Percentage of each: Grading is usually done by appearance, mass & size for skins, and by appearance & mass for hides. The grading of hides & skins and the percentage of each grade are as follows:
Hides: I: 35% – II: 50% - III: 10% – reject: 5%
Skins: I: 25% – II: 50% - III: 20% – reject: 5%
Hides and Skins trade channels: All hides and skins in the country are delivered to tanneries by licensed collectors. Market(%): Total Ban of export of raw hides and skins from 1994. Material is 100% processed locally and exported only in the form of pickle, wet-blue and crust Annual Export Value(US$): Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 5 Installed Tanning Capacity: 700 hides/day
Tanneries in Operation: 5 Utilized Capacity: 500 hides/day
Output of the Industry: · Pickled/ wet-blue sheep: 569,025 pc
· Crust /finished sheep: 63,225 pc
· Wet-blue goat: 1,327,725 pc
· Crust/ finished goat: 147,525 pc
· Wet-blue hides: 119,425 pc
· Finished leather from hides: 21,075 pc
Average size for sheep approx.: 6 sq.ft.
Average size for goat approx.: 5 sq.ft.
Average size for bovine approx.: 24 sq.ft.
Number of Employees: 238 Market (%): About 70% for international market
About 30% for local consumption
The major markets are: Italy, Hong Kong, India, Pakistan, China, etc.
Estimated Annual Export Value: US$ 2,476,333.00 (2004 est.) Footwear Number of Footwear Factories: 13 shoe factories officially registered / Dozens of small sized and artisan shoe making enterprises in operation unregistered In Operation: Most of the mechanized shoe factories are in operation Manufacturing Capacity: Installed capacity – 6640 pairs /day
Utilized capacity – 1230 pairs /day
Number of Employees: 800 employees Market (%): Approximately 90% local consumption.
Approximately 10% international market
Estimated Annual Export(US$): US$ 46, 894.00 (2004 est.) Leather Goods Number of Leather Goods and Garment Factories: 2 leather goods and Garment enterprises at factory level / 5 small scale. In Production: All are in operation Manufacturing Capacity: Installed capacity: 200 jackets/day
Belts, Hand bags, brief cases, wallets are also made.
Number of Employees: 70 employees in the leather Goods and Garment Industry. Market (%): 100% local market Estimated Annual Export Value(US$): Nil SWOT Analysis Strengths: The leather sector has great potential of raw-material input and highly disciplined labour force. Weaknesses: Shortage of foreign currency and limitation of skilled man-power in the footwear sub-sector and the tanneries to produce competitive shoes and quality finished leather respectively. Opportunities: Development of the livestock resource base and possible growth of export of (minerals) is expected to solve the foreign currency shortage. Increasing development in infrastructure and easy access to the ports of Massawa and Assab in the Red Sea are some of the opportunities available. Threats: Recurrent droughts, ever rising energy prices, high quality demand and the high competition in the world market are some of the main threats
Country: Uganda Country Information Country Size : 236,040 Sq Km Population: 33.4 millions Currency: Ugandan shilling (UGX) Languages: English is the official language. Swahili and Luganda widely spoken. Capital City: Kampala GDP(US$): 17.0 billions Economy-Overview: Uganda has been one of Africa’s recent success stories with its groundbreaking accomplishments against HIV/AIDS and reports of robust economic growth. This economic success has been as a result of the implementation of economic reforms. Despite this, private investment has to be increased in order to ensure continued economic growth. In 2001 the country had foreign direct investments totaling US4.7 million. New monetary and exchange rate policy operating procedures were implemented in 2002 and have facilitated sterilization operations and resulted in a reduction in volatility in interest and exchange rate movements. The privatization of the Uganda Commercial Bank in 2002 and its consequent merger with an international bank contributed to the continual strengthening of the country’s banking sector. Measurements concerning bank supervision have also been strengthened. Main Economic Sectors: · Agriculture (food crops, cash crops) GDP growth rate 2004/5 was 2.1%
· Industry (formal manufacturing, SME's, electricity water, construction) GDP growth was 9.1%
· Services (whole sale and retail, hotels & restaurants, transport & communications, Community services GDP growth was 7.2%
Main Exports: coffee, fish and fish products, tea, cotton, flowers, horticultural products; gold Main Imports: capital equipment, vehicles, petroleum, medical supplies; cereals Main Industries: Sugar processing, Edible oil Cement, roofing products, FishProcessing, Monetary construction Natural Resources International Organization Membership: East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), African Union (AU), Commonwealth, United Nations (UN) –, Intergovernmental Authority on Development (IGAD), WTO, WHO, Infrastructure: Airports: Entebbe. Roads: Northern by-pass, Kampala- Nairobi-Mombasa, Nairobi Dar-Es-salaam. Transport networks: Rail to Kisumu, Rail to Bukoba and Mwanza via Lake Victoria by ship then to Mombasa or Dar. Communications: Mobile telephones of MTN, Celtel, Mango and land line of UTL and MTN. However, Uganda is land locked and benefits from sea ports of Kenya and Tanzania. Towns on Lake Victoria are linked to the sea by road and or rail networks. Other: Livestock Information Cattle Population : 7.6 million Sheep Population: 1.9 million Goat Population: 9.2 million Camel Population: 0.1 million Other Populations: 1.7 million pigs Cattle Off take Rates: 10.15% Sheep Off rake Rates: 22.2% Goat Off take Rates: 33.45% Camel Off take Rates: 1.75% Livestock Policy: The Agriculture Sector provides for up to 42% of the National Gross Domestic Product (NGDP) and up to 80% of the labour opportunities and the related income generation to Uganda’s more than 25 million people. The animal industry accounts for about 17% of the Agricultural Gross Domestic Product (AGDP) and 9% of the National Gross Domestic Product. Up to one third of the total national households are involved in livestock industry related activities.
Uganda’s climate favours animal farming since natural, improved pastures and supplement feeding is available for all ranges of animals. The meaning of animals is defined by OIE International animal health code as: mammals, birds and bees among others. As a developing country Uganda has had various technical and non technical constraints in the animal industry, however, these are being addressed through better policies, regulatory framework and institutional strategies that has started yielding quantitative, qualitative, safe and wholesome animals and their products.
The single most difficult issue in the developing countries where the majority of animals are not confined is the easy with which trans-boundary animal diseases may be acquired and propagated. This is largely due to the predominant pastoral, communal and back yard farming systems that tend to farm different kraals / herds/ flocks at the same time on the same open ranges. Many countries with such systems have previously had difficulties to introduce effective disease and vector control strategies and also conduct effective animal movement control.
By policy and regulations, Uganda is moving away from such systems to commercial and profitable farming to which animal confinement / movement control is an obligation (Technical guidelines on animal movement control have been made for immediate implementation). These guidelines are being followed by the sanitary standards operating procedures (SSOP) that are HACCP or risk based up to farm level.
Uganda is vigorously pursuing policies, the regulatory framework and its enforcement so as to conform to SPS measures on animal health and food safety since we are members of the WTO, the OIE and the Codex Alimentarius. The East African Community has approved its SPS Code harmonizing the standards and procedures for certifying the health and safety of animals and animal products thus facilitating their movements / trade into, out of and within the Community.
The National Bill on Food Safety and its multi-sector stakeholders related to SPS/food safety for implementation will also go along way to ensure meat and other animal products quality, safety and wholesomeness. The Bill will use the food chain based risk analysis, risk management principles and procedures right from policy, production, harvesting, handling, storage, processing, laboratory analysis, inspection and certification, distribution and finally to the consumer.
Uganda’s veterinary services have been restructured and emphasize animal epidemic disease control, animal: health / production / marketing regulatory and standards enforcement at the centre with the backup extension / advisory services at the local governments. The private sector are the investors and implements. Communication with the lowest veterinary units by fixed phone, fax, mobile phone and e-mail has rapidly improved. Any disease outbreaks are reported immediately for control purposes. A national surveillance system that conducts disease search and intelligence gathering for action is in place in all the districts. An identification / traceability system for animals and animal products is under plan for implementation up to the lowest levels. Village animal and animal products export promotion centres / herds are to be introduced too.
Farming and agro-processing is a private issue but government has and will continue to give a technical conducive environment in deficient areas. It is doing so to provide technical infrastructure and services for the promotion of production for export in meat, milk, hides and skins and honey. Latter, the private sector is to take over after a level of development has been achieved.
The conducive macro-economic policies on economic that are available and in use with their strategic plans of action are as follows:
- Economic liberalization, divestiture and privatisation
- The new Constitution
- The decentralisation / democratisation of society
- The universal primary education, public service restructuring, the poverty eradication action plan (PEAP)
- The plan for modernization of agriculture (PMA)
- The national delivery of veterinary services policy
- The national veterinary drug policy
- The national apiculture policy
- The national hides, skins and leather policy
- The animal breeding policy
- The food and nutrition policy
- The animal feeds policy
- The national environmental protection statute
- The Uganda national bureau of standards policy
- The national water policy
- The national health policy
The conducive legal / regulatory framework available and in use as applicable are as follows:
- The new Constitution
- The MAAIF restructuring report of year 1998 and 2000
- The Animal Diseases Act 1964, including 1964 Rules, 1968 rules, 1968 importation of poultry and poultry products, 1997 rules making BSE, IBD and Fowl Pox animal disease, 2003 selective ban on importation of cattle, beef, semen, ova, embryos, bone, bone meal and other cattle protein preparations in relationship to BSE, 2005 Statutory Instruments making bees animals and bee diseases as animal diseases while also setting rules for honey and other bee products quality and safety
- The Rabies Act 1964
- The Cattle Trading Act 1964
- The Hides and Skins Act 1964
- The Veterinary Surgeons Act 1970
- The Animal (Straying) Act 1964
- The Animal (Prevention of Cruelty) Act 1957
- The Cattle Grazing Act 1964
- The Public Health Act 1964 (Meat and Milk Rules)
- The Code of Meat Inspection Uganda 1973
- The Food and Drug Act 1964
- The National Drug Authority Policy and Statute 1994
- The Animal Breeding Act 2000
- The Uganda National Bureau of Standards 1993 and 1998
- The National Water Statute
- The National Meat Body Regulation in the making
- The Food Safety Bill
- The WTO Bill in the making
- The National Environmental Protection Statute
- The East African Community Sanitary Phyto-sanitary Bill in the making
- The WTO SPS Agreement and measures
- The OIE international Animal Health Codes
- The Codex Alimentarius on food safety.
Most veterinary regulatory frame works is old as compare to the new policies. The regulatory framework is thus being reviewed or entirely reformulated to meet the new economic policies and harmonise with WTO. It will also be harmonized with the regional and international regulatory frameworks on similar issues. We expect to conform to the EAC, WTO / SPS, OIE and Codex Alimentarius standards and procedure hence the entry into the global market.
Slaughter Facilities: Slaughter houses: 40
Slaughter slabs: 800
Hides and Skins Quantity Hides: 0.7 million pieces Quantity Sheep: 0.4 million pieces Quantity Goat: 2.4 million pieces Annual Collection Level Hides: 90% Annual Collection Level Sheep: 70-80% Annual Collection Level Goat: 70-80% Flaying methods: Hand-flaying Preservation Methods: Grading Systems, Available Grades and Percentage of each: Grade I: 20%
Grade II: 30%
Grade III: 50%
Hides and Skins trade channels: NA Market(%): Local hides/skins - 10%
International - 90%
China, Hong Kong, Italy, India, United Emirates, Pakistan, Kenya, United Kingdom.
Annual Export Value(US$): NA Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 4: bovine, goat and sheep / 1: fish skins Installed Tanning Capacity: Hides: 1150pcs or 29,900sqft per day
Skins: 5200pcs per day
Tanneries in Operation: 3 - hides/skins / 1 - fish skins Utilized Capacity: Below 20% Output of the Industry: Wet blue: 43,000 hides, 150,000 skins p.a.
Finished: 3,000 hides or 75,000sqft p.a.
Fish skins: 30,000 pc processed p.a.
Number of Employees: 88 Market (%): NA Estimated Annual Export Value: ,000,000 (2004/05 est.) Footwear Number of Footwear Factories: 8 In Operation: 7 Manufacturing Capacity: Installed: 160,800 pairs p.a.
Utilized: 93,360 pairs p.a.
Number of Employees: NA Market (%): International 1%
Estimated Annual Export(US$): NA Leather Goods Number of Leather Goods and Garment Factories: In Production: Manufacturing Capacity: Number of Employees: Market (%): Estimated Annual Export Value(US$): SWOT Analysis Strengths: - Institutions are or have been set up for standards and quality in the industry
- The meat policy and the hides, skins and leather development policies have been developed
- Standards for both have been designed for implementation
- Skinners and flayers are being trained to reduce flay cuts
- Trained footwear and leather goods entrepreneurs and workers available.
Weaknesses: Lack of trade and marketing information; low productivity and poor workmanship; lack of grading law hides and skins and price settings; lack of commercialized farming systems; poor marketing physical. Opportunities: Uganda’s hides and skins are naturally of high quality, high texture and heavy substance and are suitable for the production of excellent heavy upper and vegetable tanned sole leather.
Uganda has many water bodies which provide a large quantity of fish and, in addition, the government has encouraged fish farming in many areas, consequently a high potential for fish skin.
Crocodile farming in Uganda is gaining popularity for the provision of the valuable crocodile skin and this provides great potential for investment.
Supportive and complementing government programs in the areas of livestock health and production as well as infrastructure development.
Local demand for leather and leather products shows an upward trend. The total footwear requirement of the country is estimated at 20.9 million pairs per year.
Bilateral and multilateral trade arrangements such as East African Customs Union, Common Market for Eastern and Southern Africa (COMESA), African Growth Opportunity Act (AGOA), African Caribbean and Pacific European Union (ACP-EU) and COTONOU agreement, provide potential regional market for finished leather and leather products.
Threats: Institutional weakness; Lack of a policy to guide the sector to address the constraints and amend the Hides and Skins trade Act of 1964 which does not conform to the new policy reforms.
Poor production methods associated with lack of proper equipment, inadequate infrastructure, limited human resource capacity and poor husbandry practices.
Limited processing and value addition due to lack of quality raw materials, inadequate human resource, environmental concerns, high investment costs and lack of incentives to invest in the industry.
Poor marketing as a result of poor quality products, competition from second hand and synthetic goods, poor infrastructure and marketing information, lack of credit facilities, subsidies and protectionist policies in foreign markets.
Low participation of women due to limited awareness, cultural hindrances and limited access to means of production and resources.
Country: Kenya Country Information Country Size : 582,650 square kilometers Population: 40.5 millions Currency: Kenyan shilling (KES) Languages: Bantu Swahili and English Capital City: Nairobi GDP(US$): 32.2 billions Economy-Overview: The regional hub for trade and finance in East Africa. Main Economic Sectors: The major sectors of Kenya's economy are agriculture, industries and services. Agriculture that was accounting (with forestry and fishing) for about 24 per cent of GDP’s share has been declining. The services sector particularly tourism is becoming a pillar of the Kenyan economy, accounting for 20 per cent of GDP and a significant portion of the country’s foreign exchange earnings. Main Exports: Tea, horticultural, coffee, petroleum products, fish, cement Main Imports: Machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics Main Industries: Food and beverages processing, manufacture of petroleum products, textiles and fibres, garments, tobacco, processed fruits, cement, paper Natural Resources International Organization Membership: ACP, AfDB, AU, C, COMESA, EAC, EADB, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, IGAD, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MONUSCO, NAM, OPCW, PCA, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNMISS, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO Infrastructure:
Sea ports: Kilindini Harbour: MombasaMore than 90 percent of the population has access to GSM cell signals, Kenya's airline a top carrier in the region and its international airport a key gateway to Africa.
Airports: 221, Paved 15, International Airports - Jomo Kenyatta International Airport, Moi International Airport, Eldoret International AirportRoads: total: 63,942 km: paved: 7,737 km, unpaved: 56,205 km (2000)Railways: total: 2,778 km: narrow gauge: 1.000-m gauge (2004
Other: Livestock Information Cattle Population : 13 million Sheep Population: 9.8 million Goat Population: 13.8 million Camel Population: 1.1 million Other Populations: 0.4 million Pigs, 0.01 million Ostrich Cattle Off take Rates: 10.2% Sheep Off rake Rates: 28.1% Goat Off take Rates: 33% Camel Off take Rates: NA Livestock Policy: * Livestock production is fully privatized and the Government’s role is the provision of extension services, especially in appropriate technology and improved management.
* The overall livestock policy is to sustain a proper balance in investments in the sub-sector and provision of services between the public sector, the private sector and the beneficiaries.
* Strengthen livestock extension servicesn Promote and encouragement of processing of long shelf life livestock products e.g., dairy products, camel milk, meat and honey/beeswax.
* Complete the process livestock reforms including finalisation of the various livestock policies and legal framework.
* Provide incentives to investors and entrepreneurs in livestock industry and skills for managing cottage inclusive.
* To source for funds to undertake comprehensive livestock census
* Development of infrastructure e.g. roads, power; etc.
* Develop a clear policy on livestock production, processing and marketing emphasising health and safety standards.
* Encourage the establishment of value adding processes.
* Enhanced private sector participation
* Participatory development i.e. enhance stakeholder participation in the sector development
* Access to local, regional and global markets through improved access in domestic market and expanded access to regional and global markets.
* Improved productivity and competitiveness of the livestock through sustainable increase in livestock resource base and improve efficiency in livestock production systems.
Slaughter Facilities: 2,000 slaughter facilities
70% - slaughter slabs
30% - slaughterhouses of various standards – mainly operated by town councils
Export Slaughterhouses - 7
Hides and Skins Quantity Hides: 2.5 million pieces Quantity Sheep: 2.7million pieces Quantity Goat: 5.4 million pieces Annual Collection Level Hides: 83% Annual Collection Level Sheep: 64.5% Annual Collection Level Goat: 71% Flaying methods: Hand and Knife flaying Preservation Methods: Wet salted: Cattle 70% / Sheep 70 % / Goat 70%
Air-dried: Cattle 25% / Sheep 23% / Goat 23%
Ground dried: Cattle 5% / Sheep 5% / Goat 5%
Other: Cattle -% / Sheep 2% / Goat 2%
Grading Systems, Available Grades and Percentage of each: Grades I, II, III and IV (Cattle 34,32, 26 and 8 respectively) (Sheep 36, 34, 22, 8 respectively) (Goats 36, 34, 22, 8 respectively) Hides and Skins trade channels: NA Market(%): International – 80%
Local – 20%
Major Markets: India, Pakistan, China
Annual Export Value(US$): NA Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 19 Installed Tanning Capacity: Hides: 3,300,000
Tanneries in Operation: 13 Utilized Capacity: 80-100% Output of the Industry: Wet blue
Hides: >1,076,400 pc, Skins: >6,246,000 pc
Hides: >246,000 pc , Skins: >432,000 pc
Hides: >450,000 pc, Skins: >240,000 pc
Number of Employees: >1,700 Market (%): 95% export, 5% for local market , Major Markets: Pakistan, China Estimated Annual Export Value: 47.64 million US$ Footwear Number of Footwear Factories: 100 In Operation: 25 formal enterprises (60% of leather goods and footwears produced by the informal sector Manufacturing Capacity: (>70%) 4 million pairs Number of Employees: NA Market (%): NA Estimated Annual Export(US$): 2.34 million US$ Leather Goods Number of Leather Goods and Garment Factories: 30 In Production: 15 Manufacturing Capacity: Installed: 500,000 (small leather goods)
Utilized: 300,000 (small leather goods)
Number of Employees: 76 Market (%): Local 100%
Major Markets - Tourist
Estimated Annual Export Value(US$): NA SWOT Analysis Strengths: Kenya is a natural hub for regional services and regional headquarters due to its high quality manpower and its amenities. Many foreign investors based in Kenya sell services to the region. This position has not been actively promoted, however, and comparative advantages remain under-exploited.
Export-led agribusiness has developed international competitiveness, in significant part due to FDI. The industry has flourished notwithstanding the infrastructure and policy difficulties that have undermined the traditional industrial base.
With a deep-sea port and a well-developed airport Kenya has significant potential as a regional logistics hub. It is the main entry point for the Great Lakes Region, one of the few African regions with outstanding agricultural potential, and also serves
Uganda and the Western regions of Tanzania (currently trade from Arusha, to Mwanza, both in Tanzania, passes through Kenya).
Weaknesses: Kenya's industrial sector operates under old-fashioned management and production processes that have been made obsolete by more recent structures based on the concepts of Lean Production/World Class Manufacturing. These flexible forms of production organization provide significant and low-cost returns through, among other things, production-pulling, total quality control or cellular layouts. These forms of organization have been applied not just in high-income countries, but also in a variety of low-income economies (Kaplinsky, 1994). Visits to Kenyan manufacturing plants show that much of this organizational revolution has passed Kenyan industry by. Ironically, the very outdated nature of Kenya’s factory system could provide potential for investors, notably foreign investors, for output expansion and cost reduction at attractive incremental capital cost. Opportunities: Agriculture is the mainstay of the economy, providing livelihood to approximately 75 per cent of the population. There is considerable scope for diversification and expansion of the agricultural sector through accelerated food crop production and increase of non-traditional exports. There are also opportunities for improvement in technology infrastructure such as packaging, storage, and transportation. Intensified irrigation and additional value added processing are marketable areas for investments.
Tourism is Kenya's third largest foreign exchange earner. The tourism industry is growing as a result of the liberalisation measures, diversification of tourist generating markets and continued Government commitment to providing an enabling environment, coupled with successful tourism promotion and political stability. Enormous opportunities exist for investment in film production; recreation and entertainment facilities in the following areas: Conference Tourism, Cultural tourism, Cruise ship Tourism, Aviation/tour and travel Tourism, Eco-tourism
Manufacturing sector is an area where investment opportunities exist. Initially developed under the import substitution policy, there has now been a shift to export oriented manufacturing as the thrust of Kenya's industrial policy. The sector plays an important role in adding value to agricultural output and providing forward and backward linkages, hence accelerating overall growth. The manufacturing sector now comprises of more than 700 established enterprises and employs directly over, 218,000 persons as at the year 2000. A wide range of opportunities for direct and joint-venture investments exist in the manufacturing sector, including agro-processing, manufacture of garments, assembly of automotive components and electronics, plastics, paper, chemicals, pharmaceuticals, metal and engineering products for both domestic and export markets.
Threats: Productivity is not only low relative to strategic competitors like China and India, but it is also falling behind. Kenya’s formal manufacturing firms have not seen gains in productivity in more than a decade. Meanwhile China and India have been making huge gains in firm productivity.
With the exception of the textiles sector, firms’ propensity to export actually fell between 1999 and 2002. AGOA helps, as it has already in textiles, but in other sectors Kenya has to compete against China and India.
Country: Sudan Country Information Country Size : 1,861,484 sq km Population: 34,206,710 Currency: Sudanese pound (SDG,SDD) Languages: Arabic (official), English (official), Nubian, Ta Bedawie, Fur Capital City: Khartoum GDP(US$): .21 billion Economy-Overview: For nearly a decade, the economy boomed on the back of increases in oil production, high oil prices, and significant inflows of foreign direct investment. Following South Sudan's secession, Sudan has struggled to maintain economic stability, because oil earnings now provide a far lower share of the country's need for hard currency and for budget revenues Main Economic Sectors: Agriculture, Industry and Services are the main sectors of the economy Main Exports: Crude Oil, Cotton, Sesame, Groundnuts, Livestock, leather and Gum Arabic. Main Imports: Capital Goods, Machinery & equipment, building and construction materials. Main Industries: Petroleum, Food stuff (Sugar, Edible oils) Textile and Leather. Natural Resources International Organization Membership: UN bodies, IMF, IBRD Group, Arab league and agencies, African Union and COMESA, WTO membership is under consideration. Infrastructure: The country has 3 Seaports on the Red Sea and a number of Airports including 3 International Airports at Khartoum, Dongola and Port Sudan.
Railway networking covers almost all parts of the country, including the Northern parts of the South.
Road transport has also expanded considerably during the last few years.
Other: The telecommunication sector has thrived remarkably following privatization reflecting a sharp increase in the number of users. Livestock Information Cattle Population : 41,850 Sheep Population: 52,194 Goat Population: 43,806 Camel Population: 4.5 millions heads. Other Populations: NA Cattle Off take Rates: 20% Sheep Off rake Rates: 45% Goat Off take Rates: 37% Camel Off take Rates: 15 % Livestock Policy: Policies and strategies set aim at raising the productivity and competitiveness of the sector, through the following:
1. Assurance of health for the national herd for food security and increasing export from livestock and fisheries.
2. Rehabilitation and improvement of quarantines and slaughter houses according to international standards.
3. Rehabilitation and development of veterinary services in the State level.
4. Improvement of indigenous breeds to raise their productivity.
5. Improvement of Meat production breeds by implementing intensive production scale to make their product competitive in the international market.
6. Establishment of Sudanese standards for animal products to meet international standards and requirement.
7. Introduction of modern production technologies.
8. Encouragement of investment in livestock and fisheries for national food security and export.
9. Establishment of a marketing technical body within the Ministry to provide marketing information for local and export market for livestock products and fisheries.
10. Development of veterinary extension services and pastoralist Development Programs.
11. Contribution to poverty elimination and family earning development programs.
12. Supply of veterinary Drugs, Vaccines, and supervision of their use.
13. Regulation of veterinary Drugs import and registration.
14. Development of veterinary drugs supervision and control using modern technologies.
15. Availability of poultry and fish production, inputs /ingredients locally by rational utilization of local resources.
16. Inducing of Animal resources in Southern Sudan to play a roll in the National Economy.
17. Rehabilitation and development of infrastructure in war- affected areas.
18. Establishment of model production farms.
19. Setting up of federal and local legislation for support and improvement of production, marketing, quality control and consumer and environment protection.
20. Creation of work opportunities for veterinarians, animal production and natural resource graduates and their recruitment in the public and private sector.
Slaughter Facilities: Class I / Number: 6 / Remarks: Closed roofed, one Port Sudan, Nyala the rest Khartoum state-handle export meat slaughter.
Class II / Number: 3 / Remarks: One closed in Medani-Gazira state.
Class III / Number: 28
Class IV / Number: 50
Class V / Number: 50
Note: Classification: is based on the capacity of slaughter and facilities available at the Slaughter.
Hides and Skins Quantity Hides: 2.8 Quantity Sheep: 9.4 Quantity Goat: 15.0 Annual Collection Level Hides: 90% Annual Collection Level Sheep: 95% Annual Collection Level Goat: 90% Flaying methods: Preservation Methods: Grading Systems, Available Grades and Percentage of each:
Grading: Firsts, seconds, thirds and reject, Size: large, medium and smallI: cattle: 5 / sheep: 5 / goat: 5 / camel: 0
II: cattle: 20 / sheep: 15 / goat: 15 / camel: 0
III: cattle: 25 / sheep: 50 / goat: 40 / camel: 25
IV: cattle: 50 / sheep: 30 / goat: 40 / camel: 75
Hides and Skins trade channels: Large merchants and tanneries are the main buyers and pre- finance some of their agents/ dealers to collect the hides and skins on their behalf.
Butcher (Farmer) - Small Collector (Villages, small towns, rural markets) - Large Collector (Town merchants at capitals of States) - Large Merchants
Market(%): Sheep skins: local - 85%, international - 15%
Goat skins: local - 75%, international - 25%
Cattle: local - 50%, international - 50%
Annual Export Value(US$): NA Average Market Bovine Price: NA Average Market Sheep Price: NA Average Market Goat Price: NA Tanning Number of Tanneries: 23 Installed Tanning Capacity: 30,000,000 Sheep and goat skins
Tanneries in Operation: 19 Utilized Capacity: Skins: 6,000,000 pieces
Hides: 600,000 pieces
Output of the Industry: Product: Pickled: Cattle: 13,600 / Sheep: 905,121
Product: Wet blue: 502,718 / Sheep: 4,273,772 / Goat: 2,199,731
Product: Finished Leather: Cattle: 63,682 / Goat: 737,862
Number of Employees: Approx. 1,500 Market (%): Sheep & Goat skins:
- International: 90% of processed skins
- Local: 10% of finished skins
- 75% for International market
- 25% finished for local industry.
Estimated Annual Export Value: 27.73 Footwear Number of Footwear Factories: Factories: 20 / SMES: 35 / Workshops: 730 / Artisan factories: 330 In Operation: Fully operated for local army boots and local shoes some for export Manufacturing Capacity:
Large Factories: Installed capacity: 17,300,000
Large Workshops: Installed capacity: 17,300,000
SME/small workshops: Installed capacity: 5,500,000 / Actual capacity: 1,835,000
Artisans: Installed capacity: 1,650,000 / Actual: 1,320,000
Total: Installed capacity: 25,325,000 / Actual capacity: 3,155,000
Number of Employees: Market (%): Local Markets: 100 % Estimated Annual Export(US$): Leather Goods Number of Leather Goods and Garment Factories: Leather goods and garment factories – ONE / Artisan shops in markets In Production: The one factory has only recently been established Manufacturing Capacity: NA Number of Employees: NA Market (%): Local Markets: 100% Estimated Annual Export Value(US$): SWOT Analysis Strengths: * A large livestock base producing sizable hides and Skins
* Good size of investment in the tanneries industries and footwear
* Cheep labour
* The government policy supports the leather, textile & vegetable oils industries, further action & policies are expected to support industry for adding value
Weaknesses: * Low quality of raw Hides/Skins
* Low productivity and slow technological advancement
* Lack of design capabilities
* Low management and marketing skills, leading to low competitiveness coupled with flooding of market by East Asian products
* Small investment in non - footwear leather products.
Opportunities: New policies adopted to concentrate on leather, textile and vegetable oils industries give scope for expansion both horizontally and vertically to process all Sudanese hides/skins aiming at export market-regional & global.
Encouragement Factors for solid investment base in Sudan:
- Immense natural resources and variegated climatic conditions.
- Strategic position in the heart of Africa and its projection in the Arab World and North Africa.
- Realization of peace and Democracy and expected reconciliation to solve other conflicts within the country.
- The improvement of infrastructure such as a roads, communication and means of transport.
- Liberalization of economy and privatization trends.
- Investment motivating policies: financial, monitory and improvement legislation.
- Preferential privilege to investment in projects in less developed areas, war / conflict affected areas, large employment creation projects and promotion of scientific and technical research.
- There are also guarantees against rationalization, confiscation with retransfer of invested capital in case of non- execution.
Leather related opportunities:
As its one of the most important 3 agro industries, the investment opportunities proposed include:
- Rehabilitation or new investment for advancement in processing to leather and leather products for added value and export oriented not only for footwear, but also garments, upholstery and leather products.
- Establishment of chemical industries for Tannery chemicals from indigenous materials E.g.: Chrome ore, lime vegetable tannins, Oils, pigments, etc.
Last making from plastics, also soles and adhesives.
- Industries for accessories for footwear and other leather products.
Livestock projects should incorporate hides/skins improvement from husbandry, slaughtering, flaying, preservation at slaughter house as large investors are expected for Meat for export to Arab and Muslim Countries.
Threats: High operational costs due to continuation of taxes and levies from different levels of government.
* Flooding of market with cheap products from Asia and other countries like Syria, Turkey and Egypt.
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), MachineFlaying (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