Despite the looming prospect of war in Iraq, International Leather Days held in Istanbul January 9 - 11, still managed to attract some 35,000 visitors.

Thirty-one countries participated or were represented by local firms on 415 exhibition stands. ‘Leather Days’ is billed as a star attraction in the global arena. It is as much a fashion fair as a trade fair these days and, now that double-face is on downtime until August, one can better judge the health of the sector.

Türkiye is the undisputed global number one in double face and Turkish tanners processed between 80 and 90 million lamb skins in 2002. More balanced production schedules would suit double-face tanners, not the peaks and troughs that currently predominate. With 75 to 80 percent of production relying on lambskins and on one market (Russia), maintaining the number one slot will be a serious challenge for 2003, particularly if hide and skin shortages persist.

A decrease in the number of tanneries operating in Turkiye also cannot be ruled out. Success will be seen in the form of the tannery district of Gerede (125 kms north of Ankara) which specialises in bovine skins.

A look at garment producers, who were the core exhibitors at the fair, saw stunning, original lines and many innovative fashion touches. But the market’s sole focus appeared to be on printed leather and jungle-type Tarzan prints. To carry out this printing process on a sub-contract basis, many new enterprises have mushroomed.  To economise, tanneries now prefer to subcontract the drying process to a few specialists within each tannery zone, as Italian producers have long since done.

The chemical sector has never been able to survive in the same way with ‘one-channel’ customers and almost all firms service other sectors. At Cognis, for example, only 4 or 5 percent of turnover is for leather chemicals. Along with Sarchem and Sisecam, these are the three Turkish firms to have opened Beijing and Shanghai offices.

Trying to satisfy Russians has meant over-investment in capital items and tannery machinery, which cannot be recouped from sales to Russia alone. As a result, many firms are now downsizing and machinery makers describe their market as ‘over subscribed.’ Total Turkish machinery sales were worth about $20 to $25 million in 2002. Five or six years ago this represented sales for just one firm.

The expensive euro has made Turkish machinery attractive to world buyers, however, and manufacturers are now selling to the United States and China while some have already sent orders to Iran, tempted by that country’s 500 bovine tanneries. Many machines were sold at Leather Days and raw skin shortages have filtered down to the  sector where firms such as Huni Makina, Osmanli Makina and Mercan have reacted by offering small-scale, more economical drums. Ozdersan showed ironing machines in a 400 mm width while two of the most experienced players in the country’s leather sector have diversified into new ventures, homewares for one garment producer and yacht production for a prominent machinery maker.

Russia is making serious efforts to curtail illegal trade. In ‘trade trials’ one Turkish producer noted that taxes, transport and customs duties added 52 percent to his costs! In general, Turkish producers resent Russian customs officials determining the import value of a garment. But in the final analysis, it needs to be recognised that responsible producers must solve their problems together and regulate themselves if they don’t want others to do so.

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