Consumption Potential Of Leather Products Continues To Expand

The local market is also open to other manufacturers.

In the early 2000, plastic shoes from China landed in Ethiopia and became popular, causing local shoe factories to worry.

But this shift has prompted more companies to sell locally and display their "Ethel made" products.

although

Occupy an important position, Assefa believes that the consumption of Ethiopian leather products will increase with the increase of people's income.

The biggest challenge for Ethiopia leather industry

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However, the investment and vitality of the leather industry has been greatly increased.

Supply shortage.

Most factories have to get raw leather from suppliers, but also buy raw skins from scattered small suppliers.

Although Ethiopia farmers mostly have cattle, Assefa thinks it necessary to develop commercialized farming.

Small scale farmers' scattered farming, the quality of the skin, meat and milk produced is not high.

In particular, improper processing or slaughtering damages the quality of leather.

"In order to breed sheep, goats and cows healthy, we need to build modern farms."

"Family slaughtering is often due to improper operation, and the process of artificial peeling will damage the quality of raw skin.

We need modern slaughterhouses, and more concentrated slaughtering can simplify the process of raw leather procurement and maintain the quality of raw skins. "

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Bangladesh media reported that due to the continued weakness of the euro and other major currencies against the US dollar, the export of leather has been in a predicament in the current fiscal year.

In the last fiscal year, the leather industry of Bangladesh entered the export Club of 100 million yuan (US dollars), and the total export of leather, shoes and other leather products totaled US $1 billion 124 million, of which leather exports amounted to US $505 million and footwear products exported to US $378 million.

In view of the good export performance of leather industry in the last fiscal year, the government set a target of export of US $1 billion 400 million in the current fiscal year.

However, data from Bangladesh's Export Bureau showed that the overall export of leather industry fell by 1.14% in the first 9 months of this fiscal year (March May 2014 -2015).

Leather shoes exports increased by 20%-25%, but leather and leather goods exports fell by 20.26% to $304 million.

According to industry estimates, because of the poor performance of leather raw materials exports, the export target of $1 billion 400 million is hard to achieve.

The Bangladesh Tanner Association says the country's total export of leather is about 200 million square feet a year, in sum, 500 million dollars.

Md Shaheen Ahmed, chairman of the Bangladesh Tanner Association, said: "the decline in leather exports is mainly due to the decline in the euro, yen and RMB exchange rate against the US dollar."

He said the decline in the euro has affected Bangladesh's overall exports.

Md Delowar Hossain, former Secretary General of the Bangladesh fur traders Association, is a leather exporter. He said the export price of high quality split leather is between $2.7 and $2.8 per square foot, compared with $3.1 last year.

He explained that because of the decline in global raw leather prices, many exporters began to hoard leather, with a view to changing in the coming months.

He said local demand for leather is on the rise because of the growing demand for shoes in Bangladesh.