Ethiopia has bountiful natural resources that could serve a springboard for its socioeconomic take off. It has a gargantuan number of animals. Heads of cattle take the bigger slice. According to the Ministry of Agriculture (MoA), Ethiopia is on the 8th row when it comes to owning the highest cattle population in the world. This helps the country to export live animals, hides and skins to various countries.
Thus, hides and skins were among the major export items that have been generating foreign currency for several years. However, since the export items had been dispatched without value addition and undergoing processing, the nation was not generating the required level of profit out of it. Having understood this limitation, the government has been striving to modernize the leather industry sector so as the sector emerges competitive in the global market.
As part of the value adding process of leather export scheme, Ethiopia has resumed exporting processed leather items like shoes, bags, gloves, jackets and belts. These products are displaying an upward swing in market demand graph. According to Leather Industry Development Institute, Ethiopia had generated 133.5 million USD from leather industrial products in 2017/18 fiscal year.
This accounts for 50 percent of what was planned to be achieved. Birhanu Serjebo, Communication Director at the Institute, told The Ethiopian Herald that the government has rolled up sleeves to enhance the hides and skin export trade and to maximize its agument is hard currency reserve. ‘‘Hides and skins have been the major export items in Ethiopia.
Though, there are fluctuations in hides and skins price locally and internationally, there has been improvement since recent years,’’ he said. Adding: ‘‘There were times when hides and skins were scrapped since they had plummeted to zero demand. This year the trend is encouraging. Export items are winning fair-price tags. This proves as a success story to the Ethiopian Leather Industry.’’
According to the Director, in the 2011 Ethiopian New Year alone, more than 100,000 hides and skins were collected in the capital Addis Ababa. This has significant increment as compared to same period last year. Nevertheless, still many challenges are hindering the sector from further growth. Lack of quality, lack of transport and unstable global market are among the bottlenecks which need feasible policy and strategy directions for rectification, Birhanu insisted. Regarding hides and skins, the awareness of the people is low.
This has to be addressed through awareness deepening tasks, said Beyene Engidaw, a skin merchant who lives in Addis Ababa. ‘‘Most people do not know that the resource would be a raw-material for basic export items that garner hard currency. Hence, the government and stakeholders should step up sensitizing programs,’’ he insisted. Beyene added that leather and leather producing factories should be allowed to thrive so as to create ample market opportunities for farmers and skin sellers. ‘‘Leather factories have been playing a big role in buying hides and skins.
Thus, the life of ordinary farmers and skin traders has been improving, though local brokers are taking unfair advantage of things. The government should tighten its controlling mechanism on hides and skins to collect the right income out of the market. Hides and skins providers and other stakeholders should deliver quality inputs, which could have high market demand,’’ he emphasized.
Meanwhile Birhanu Serjebo stated his institute is striving to render Ethiopian hides and skins quality. ‘‘The quality of hides and skins depends on the breeding and feeding system of animals. Animals should be protected from disease and get good pasture. Besides, the slaughtering of the animals must be handled properly to protect their skins from damage. Hence, we are striving to increase its price through quality improvement,’’ he noted.
To sum up, Ethiopia has huge animal resources potentials. However, it has not been utilizing it properly. Modern way of harnessing animal products for commercialization is lacking. The sector needs swift policy reform in order it could easily winds its ways to the global market. Realizing this, MoA and other development partners should work together to enhance the hides and skins trade. If so, our country could enjoy the envisaged level of advantages from the sector.
Herald February 25/2019
BY TSEGAYE HAGOS
