Tannery shortage is costing Tanzania money
12/11/2010
The ministry has said earnings from hides and skins have declined by almost 40% since the global financial crisis of 2008. Export revenues from hides and skins were $8.6 million in the financial year 2008–09, but fell to $5.5 million in 2009–10. Collection of the raw material in Tanzania also fell to 1.5 million hides in 2009–10 from 1.65 million 2008–09. Goatskin collection dropped to 2.4 million in 2009–10 from 2.7 million in 2008–09. The collection of sheepskins also dropped by almost 50% to 650,000 pieces, according to ministry’s statistics.
Marketing specialist, Julian Gutta, said on November 10 that most local producers had no choice but to throw hides and skins away because of a dearth of buyers. He said the country’s tanning capacity was “very limited”, meaning Tanzania was losing revenue either through exporting hides and skins at very low prices or destroying them altogether.
The ministry has said it is planning to develop the leather sector as part of a strategy to create “a better domestic investment atmosphere”. The plan will involve improvements to infrastructure and logistics with the aim of attracting investment in the production of leather and finished leathergoods.
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