(20 September 2011, Addis Ababa)--Ethiopia on Tuesday announced that it will ban the export of crusted leather with effect from December in the wake of shortages and escalating prices for the product.
Crusted leather is the semi-processed leather produced after the wet operation stage has been done. It is exported as it is or used by leather factories for value-added items like jackets, gloves and shoes before export.
The announcement was in response to complaints from local leather industry players about shortages and frequent price increases. The ministry of Industry said most of the income from leather exports last year came from crusted leather, which accounted for US $40 million of the US$ 104 million foreign currency receipts.
According to the ministry, the ban aims to control the price hike of skins and hides on the market. In April, the government fixed the price of skins and hides as part of efforts to address the shortage.
Prices of sheepskins were fixed at US$3, with those coming from arid areas fetching US$2. Those of goat skins were set at less than US2. But this did not stop prices of skins and hides from going up. Sheep and goat skins now cost US$4 and above.
According to available information, out of the 26 companies who export crusted leather in Ethiopia, six were only involved in processing skins and hides to crusted leather while the others export finished goods.
Most exports are destined for Europe and the United States. The ban is likely to deal a severe blow leather based industries.
Source: The Africa Report
Crusted leather is the semi-processed leather produced after the wet operation stage has been done. It is exported as it is or used by leather factories for value-added items like jackets, gloves and shoes before export.
The announcement was in response to complaints from local leather industry players about shortages and frequent price increases. The ministry of Industry said most of the income from leather exports last year came from crusted leather, which accounted for US $40 million of the US$ 104 million foreign currency receipts.
According to the ministry, the ban aims to control the price hike of skins and hides on the market. In April, the government fixed the price of skins and hides as part of efforts to address the shortage.
Prices of sheepskins were fixed at US$3, with those coming from arid areas fetching US$2. Those of goat skins were set at less than US2. But this did not stop prices of skins and hides from going up. Sheep and goat skins now cost US$4 and above.
According to available information, out of the 26 companies who export crusted leather in Ethiopia, six were only involved in processing skins and hides to crusted leather while the others export finished goods.
Most exports are destined for Europe and the United States. The ban is likely to deal a severe blow leather based industries.
Source: The Africa Report
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