Leather industry cannot escape Zimbabwe’s political crisis
The numbers for Zimbabwe leather do not look good when it comes to the likely availability of hides (and skins) in the future. Whilst accurate figures are nigh on impossible to come by, consensus amongst the trade would suggest that a supply crisis is looming as a direct result of the Zimbabwe government’s so-called land reform policies.
With commercial farmers standing to lose all their farming assets in the controversial programme, the farmers’ response has been to convert into cash as many of those assets as possible in a desperate attempt to salvage some means of survival for their future after the loss of their farms. Cattle have been one the commodities that has constituted an obvious and ready sale item and estimates are that the commercial herd has been reduced by two thirds from 1.3 million head of cattle, down to under 0.4 million. The breeding herd has suffered even greater destruction dropping to an estimated 0.2 million from 1.1 million. Losses of this magnitude will have a commensurate effect on the availability of hides in the future and, if the slaughter continues, then the problem could be catastrophic for the leather industry if it is not already at that stage, as well as the country’s food industry.
Unlike crops, rebuilding a national herd will takes years of dedication and investment. Surprisingly, however, there isn’t a glut of hides on the market. The answer to this anomaly is attributed to the country’s smuggling problem. Although Zimbabwe has laws banning the export of raw hides and skins, smuggling is rife with "permits" being bought for Z$75,000 (about $100 on the unofficial money market). Unfortunately these operations do not only flourish in surplus times but will continue to debilitate the industry in lean times as well.
Can Zimbabwe import its requirements from neighbouring countries and keep its tanneries going? Given the difficulties tanneries already have in raising enough foreign exchange to buy essential chemicals, it is hard to see how they will find the means to import raw hides as well.
