INNOVATIVE POLICY AND STRATEGIES FOR TRANSFORMATION OF LEATHER AND LEATHER GOODS

PRODUCTION IN TANZANIA

GK MBASSA & CD LUZIGASOKOINE UNIVERSITY OF

AGRICULTURE MOROGORO

1. Introduction• Cattle hides, calf, goat, & sheep skins,

leather & leather products prominent in world’s economy, value > US$100 bil/yr

• Raw hides & skins earn very small of total value of leather industry. Country exporting raw (Tz) get < 8%

Tanzania’s position in AfricaCountry #Cattle 2014 #Goats 2014 #Sheep 2014

Algeria 2,049,652 5,129,839 27,800,000Burkina Faso 9,090,700 13,900,00 9,277,700C. A. Republic 4,350,000 5,800,000 400,000Egypt 4,762,491 4,185,761 5,502,637Ethiopia 56,706,389 29,100,000 29,300,000Kenya 17,811,845 25,400,000 17,400,000Madagascar 10,031,000 2,580,000 8,400,000Mali 10,012,968 19,100,000 13,700,000Niger 11,377,312 14,900,000 11,100,000Nigeria 19,542,583 72,500,000 41,300,000South Africa 4,900,000 5,971,202 24,100,000Sudan 30,191,000 31,000,000 39,800,000Tanzania 25,900,000 17,700,000 9,400,000Uganda 13,623,000 14,000,000 1,921,000

Cattle slaughters & hides productionCountry Cattle

slaught 2013Raw hides

2013 tonnesWet salted

K-tons 2012Export wet salted K-

tons

Exp value (mil $)

Algeria 760,000 15,200 10.7 2.0 2.1

B. Faso 671,170 12,081 13.2 0.0 0.0

C. A. Rep 585,000 12,870 6.4 0.0 0.0

Egypt 1,485.000 29,700 53.3 0.1 0.3

Ethiopia 3,155,000 66,255 41.3 1.5 3.0

Kenya 2,000,000 42,000 45.5 5.0 1.5

Madagascar 1,350,000 24,300 15.6 4.7 2.5

Mali 1,300,000 26,000 18 0.6 0.1

Niger 1,428,000 28,560 11.9 0.0 0.0

Nigeria 3,100,000 62,000 35.1 0.0 0.0

South Africa 2,982,000 89,460

Sudan 2,946,500 61,876 142.0 1.7 1.5

Tanzania 3,070,000 64,470 28.6 1.1 0.6

Uganda 1,336,000 28,056 13.2 2.2 1.9

• Goat slaughters (2014) & goatskins (2013)Country #Goats slaug. skins raw tonnes dry pc x1000 2012

Algeria 1,850,000 3,700 1.0Burkina Faso 3,308,000 6,947 2.5Central A. Rep 1,160,000 2,320 0.6Chad 2,250,000 5,400 1.7Ethiopia 8,750,000 15,750 4.7Ghana 1,699,000 4,248 0.6Kenya 3,500,000 12,250 2.2Mali 5,560,000 7,182 2.7Mauritania 1,100,000 11,120 0.6Morocco 2,363,000 4,726 1.4Niger 4,420,000 8,840 2.6Nigeria 23,300,000 46,600 10.6South Africa 2,200,000 600Somalia 3,050,000 6,100 1.5Sudan 19,500,000 48,750 15.3Tanzania 3,150,000 7,875 2.0

• Sheep slaughters (2014) & sheepskins (2013)Country #Sheep

slaughSkins fresh

tonnesDry salted 2012 K-t

Exp skins dry K-tons

Exp val (mil $)

Algeria 16,200,000 40,500 9.7 0.3 1.0B. Faso 1,660,000 3,652 1.1 0.0 0.0Egypt 2,343,500 7,031 2.5 0.2 1.6Ethiopia 8,745,000 15,741 8.3 2.0 29.4Kenya 3,000,000 7,200 2.0 0.0 0.0Mali 4,120,000 11,948 2.0 0.5 0.0Mauritania 2,150,000 4,300 1.2 0.0 0.0Morocco 10,050,000 21,000 8.2 0.0 0.1Niger 2,288,000 4,576 2.3 0.1 0.1Nigeria 16,000,000 32,000 8.6 0.1 0.5Somalia 3,500,000 8,750 2.1 0.0 0.0S. Africa 5,750,000 21,250Sudan 25,800,000 64,485 15.4 1.2 1.8Tanzania 2,100,000 6,300 0.6 0.4 0.2Tunisia 3,640,000 7,280 2.3 0.0 0.0

• Leather Africa 2011Country Light leather

bovine (mil sqft)

Light leather sheep &

goats

Exports LLbovine (mil

sqft)

Exports LL sheep &

goats (mil sqft)

Export values LL

bovine (mil $)

Exp value LL sheep &

goats (mil $)

Algeria 18.3 85.0 6.0 33.1 6.3 25.1Burkina Faso 7.3 26.4 0.0 0.0 0.0 0.0

Cameroon 6.5 1.6 0.0 0.0 0.0 0.0Chad 5.1 10.6 0.0 0.0 0.0 0.0Congo DR 1.8 1.4 0.0 0.0 0.0 0.0Côte d’Ivoire 4.7 6.8 0.0 1.7 0.0 0.8

Egypt 83.7 14.5 0.0 1.0 12.4 0.8Ethiopia 21.4 64.0 2.4 59.8 3.3 67.5Ghana 3.9 2.7 0.0 0.0 0.0 0.0

Country LL Cattle LLgoat/sheep

Exp LL catt Exp LLgo/sh

Exp v catt Exp V g/s

Kenya 89.5 70.1 28.0 69.0 16.0 36.1Madagascar 13.9 2.7 0.4 0.0 0.0 0.0

Malawi 1.6 0.0 0.0 0.0 0.0 0.0Mali 3.2 15.8 1.0 2.0 0.5 0.8Morocco 12.4 74.6 5.0 11.3 12.0 15.6Niger 3.2 19.9 0.0 5.6 0.0 0.2Nigeria 25.0 108.0 0.5 88.6 0.7 130.0Rwanda 0.2 3.1 0.0 0.0 0.0 0.0Senegal 3.3 4.1 0.8 1.6 0.1 1.3Somalia 4.7 0.2 0.0 0.0 0.0 0.0Sudan 65.2 79.8 0.0 0.0 0.0 15.0Tanzania 23.7 7.8 7.6 5.4 1.9 1.7Togo 1.4 2.5 0.0 0.0 0.0 0.0Tunisia 4.9 15.0 12.1 22.9 18.8 24.0Zambia 11.1 0.0 3.2 0.0 1.7Zimbabwe 13.5 4.0 2.7 0.0 1.8

• Leather shoes prod, imp & exp (mil pairs) 2011Country All types Imports shoes,

all types Exports shoes, all types

Export values all types (mil $)

Algeria 3.1 5.1 0.0 0.0Burkina Faso 1.5 0.0 0.0 0.0Cameron 2.3 0.4 0.0 0.0C. A. Republic 0.2 0.0 0.0 0.0Congo DR 1.1 0.0 0.0 0.0Côte d’Ivoire 2.1 0.1 0.0 0.0Egypt 54.8 2.5 0.5 10.1Ethiopia 6.3 0.0 0.1 2.9Ghana 2.9 0.7 0.0 0.0Kenya 2.3 1.2 0.8 3.5Morocco 30.0 0.6 5.5 187.2Sudan 5.4 0.0 0.0 0.0Tanzania 0.2 0.0 0.1 0.9Tunisia 24.6 5.6 18.9 322.2Zambia 3.9 0.2 0.0 0.0Zimbabwe 4.0 0.2 0.0 0.1

Parameter Tz value Africa’s highest

Tz rank

Cattle, goat & sheep 53,000,000 133,342,583 3

Raw hides pc 3,070,000 3,155,000 2Raw hide tons 64,470 89,460 3Cattle hides semi-proc

Fresh goat skins pc 3,150,000 23,300,000 8

Fresh goat skins tons 7,875 48,750 7

Sheep skins raw 2,100,000 16,200,000 14

Sheep skins tons 6,300 64,485 12Semi-proc goat & sheep skins (wet blue)

• Tanzania summary of productions

Parameter Tz value Africa’s highest Tz rank

Fresh/raw cattle hide exports K-tons

1.1 5.0 10

Fresh cattle hide export values (mil $)

0.6 3.0 7 SA not in

Semi-proc cattle hides (wet blue) prodSemi-proc cattle hides (wet blue) expFinished leather cattle (mil sqft)

23.7 89.5 5

Finished leather cattle exports (mil sqft)

7.6 28 3, SA not included

Finished cattle leather exp values (mil $)

1.9 18.8 7 SA not in

• Tanzania summary; exports cattle hides & leather

Parameter Tz value Africa’s highest Tz rank

Fresh goat &sheep skinsexports (K-tons)

0.4 2 4

Fresh goat & sheep skins export values (mil $)

0.2 29.4 6 SA not in

Semi-proc goat & sheep wet blue crusts exp values (mil $)

Finished leather goats & sheep produce(mil sqft)

7.8 108 13

Finished leather goats & sheep exports (mil sqft)

5.4 88.6 8, SA not included

Finished goat & sheep leather exp values (mil $)

1.7 130 8 SA not in

• Tanzania summary; exports goat&sheepskins & leather

• Tz leather prod & trade values show quite underdeveloped• Numerous constraints

2. Constraints hides, skins, leather, leather goods

Farming• Pastoralism;• Management, feeds, water,

breeding, diseases, land use• Low investment, passive

farming

• Pre-production; Hot metal brand on cattle (84.6%), tick infestations, lumpy skin disease, ringworm, tumours & photosensitization

• Lack of human resource

Fig. 1: Singida abattoir requires rehabilitation, Figs. 2 and 3: Hides and skins drying shedsat Mwanza City Abattoir, not used because hides and skins are bought before animals areslaughtered, at slaughter place hides and skins are transported to private places fordrying, and then exported immediately to Kenya and Pakistan. Fig. 4: Blood being boiledand dried for animal feeds. Fig. 5 and 6: Horns, jaws, skulls, teeth and other bones beingcollected and transported away from the abattoir to preparation site for export to China

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• Production; Poor facilities, tools,

• Lack of abattoir investment

• Little knowledge structure of skin

• Few skilled h/s flaying personnel

• Skins cuts

• After production; Air, ground, salting, lack of human resource

• Aberrant hides skins trade

• (Farmer—small trader—slaughterer—exporter), collusive trade

• Tanner is skipped and denied of h/s• H/s quality not done > external demand high• Hijack of h/s prevents quality in Tz• Local & foreign Co, pause as tanners but export

raw h/s, cargo inspect interfered

• Chrome wet blue; Mos, Mor, Kib, Dar, Ar, Hi, Mz, Do, & Sh

• Mimosa• Low rate, little quantities• Finished leather at Himo• Little quantities• Quality is fair• Lack of human resource

• Leather Manufacturing

Fig. 7: Leather production and processing to leather products is done after the hideshave been produced, cured and transported to tanneries. The hides are soaked inwater to original wet form, vigorously soaked in lime in rotating drums (a), washed inwater to remove the lime (de-liming), acidified to de-hair and tanned to permanenttexture through chrome to produce wet blue semi-processed product (b), then finishedand dyed ready for producing goods (c). Markings on live animals as seen in (e) willshow on the leather as observed in (d), thus preventing the leather in producing bags,covers, coats and other goods that need broad leather sheets. Leather produces manyvaluable products as seen in (f).

a b

c d

e f

• Leather Trade

• Leather not on the market

• Lack of human resource

• Investment, market, competition

Leather goods

• Lack of factories;

• footwear, bags, upholstery belts etc

• Not on the market

• Lack of human resource

• 1-2 graduates in tz

3. Policy Implications• Major constraint is human resource• Graduates in leather manuf, proc, mark

required;• No trained personnel to assist city, municipal

& districts, public & private Co. To design & establish tanneries & leather goods factories, trade & market locally & internationally.

• An Institute with capacity to train, research & develop technology in leather is required

• To modernize leather industry innovative policy on training on leather technology required

6. Policy Recommendations

• 1. Train adequate human resource• Strategies• 1. Establish training programmes; BSc. Leather

Tech (SUA), DIT Mwanza• Practical & applied enable graduates to

– establish tanneries & leather goods factories– lead hides, skins & leather industry to high production & economic development

& creation of employment & profitable enterprises– Supervise & manage h/s & leather sci. & business– Be technologists, producers, processors & entrepreneurs– Plan & execute research in leather technology

• 2. Establish a National Leather Technology Institute to develop human resource & technologies to guide country on processes in leather production, processing & trade – budget this year

• 2. Utilize the hides, skins and leather resource to employ people

• Strategies• develop standard drawings for small to

medium leather goods factories & build them in districts to employ youths (SUA Model?)

• Harvest graduates from universities &, assist finances to build small/medium leather goods factories

• Target & utilize internal market (55m people) for Tzmanufactured leather goods

• Educate public to use leather goods• Tax used & synthetic goods dumped in Tz market.

• 3. Modernize slaughter house processes• Strategies• Invest in clean abattoir with facilities for h/s where

purchases can be made• Set appropriate laws for meat processing & sales, as

well as byproducts

• 4. Modernize livestock farming

• Strategies• Allocate funds to establish livestock farming

modernization program• Identify & settle livestock farmers• Give incentives to modern farmers• Find markets for modern farmers• Invest in animal feeds production• Subsidize modern animal farm costs• Invest in animal disease control

• Activate & educate farmers to transform• Allocate land for modern farming & assist

farmers get machinery to drill deep water wells & animal feeds development

• Set appropriate laws• Invest in changing people towards

responsibility & thinking; eliminate conflicts, transform resources

• 5. Eliminate aberrant & illegal trade on hides & skins

• Strategies• Set appropriate laws• Tax pre-slaughter sales of hides & skins• Tax loans that export h/s out of formal

channel.

• 6. Produce adequate & high quality leather

• Strategies• Improve quality of hides & skins on animals by

preventing pre-slaughter defects• Establish small leather goods factories• Increase tannery investments by demanding tanneries

to open shares to public in order to increase capital • Manufacture essential tannery chemicals lovally• Develop & also acquire from other sources leather

products designs

• 7. Promote leather & leather goods market in the country

• Strategies• Establish information programmes directed to public,

slaughterers & others• Educate public to buy leather goods• Tax more on plastics & used goods• Ensure availability of enough leather & l. goods• While limiting imports of synthetics & used goods

increase production of leather & leather goods• Enable regions invest in leather goods production

• 8. Reduce market competition• Strategies• Review rules on importation of low quality plastic

goods competing with leather• Limit importation of used goods• 9. Prevent ext forces wanting Tz to supply raw h/s

Strategies• Institute trade intelligence• Identify foreign companies operating illegally/ secretly

out of formal channels & stop them• Review rules on foreign Co. preventing leather prod.• Demand companies to sell shares

• 11. Make tanneries run to full capacity• Strategies• Require tanneries running at low capacity

because of little finances to sell shares to public to increase finances

• Make market/trade agreement with other countries to obtain leather market

• Review of agreements with Government• Take action on failure to comply with

investments codes agreed

Acknowledgements

• COSTECH• MALF• SUA• Tanneries and Leather goods factories• Districts and regions provided information• All personnel involved• ReSAKSS ILRI

Thank you for your attention