sudan leather value chain analysis
TRANSCRIPT
Historic Background
� Tanning is one of the oldest professions for humans as it started with the darn of humanity, it was used in both clothing and housing
Historic Background
� The need for better quality invented the need for better preservation which lead to the invention of vegetable tanning tanning and the introduction of supporting tools to increase the quality and the life of the products
Historic Background
� During the past century, t h e t a n n i n g i n d u s t r y d e v e l o p e d f r o m t h e vegetable tanning to the metallic tanning (chrome t a n n i n g ) w h e r e n e w chemicals and machines had been introduced in the industry
Historic Background
� Today and with more a w a r e n e s s t o t h e e n v i r o n m e n t a n d i t s importance to our life on earth, new researches are d e v e l o p i n g i n m o r e advanced technologies which are environmentally friendly in both processing and waist treatment
Historic Background
� In Sudan the Sector started in the beginning of last century and it was mainly as trading
� Later in the 1950’s the government opened it’s own tannery (Khartoum Tannery)
� During the 70’s the government developed it’s infrastructure in the sector by opening two other tanneries (White Nile and Gezira)
� It was till the late 70’s and early 80’s when the privet sector started to have substantial investments in the sector (Salim tannery and Afrotan Tannery)
� In the beginning of the 90’s the government had a vision of
“eating from what we grow and wearing from what we produce”
� For materializing this vision it stopped the export of raw hides and skins and during that time the number of tanneries rose from 5 to 23
� In the beginning of this century, and with the formation of the WTO, the government had to back up from any band of trade to join and had to back up from the band of export of raw
Industry
� Size
� Stake Holders
� Analysis
Industry
Trade
Exports 40 M
Imports 75 M
Institutions Ministry of Trade
Sudan Trade point
Hides & Skins Exporters Division – Exporters Chamber
Industry
Industry
Tanneries 27 tanneries, working 8 tanneries
Institutions Ministry of Industry
Leather & Leather Goods Technology Incubator
Karary Vocational Training Center
Leather and Footwear Chamber
National Leather Technology Center
Shoe factories 15 Big , 2 working
600 workshops, 300 working
Industry
Legislation
Polices Government is looking at the sector as one of the potential promising export sectors that can help in development of hard currency resources
Issues High Levies on trade
Nigerians attack for use of cow hides as a nutritional substitute
Law & Regulation 15% Export tax on raw export
Hides & Skins Law (not yet approved)
Sudanese Metrology Standards for Hides and Skins
Institutions Council of Ministers
Ministry of State Governance
Industry
RAW
Heard 28 M Bovine
56 M Sheep
43 M Goat
OFF-Take 8.4 M Bovine
25.7 M Sheep
19.2 Goat
Hides & skins 2.7 M Cow hides
10 M Sheep skins
9.8 M Goat skins Institutions Ministry of Animal Resources
Hides and Skins development Center
Industry
Category
BOVINE SHEEP GOAT
Livestock Number (Million)
Share of global herd
Off-take rate
Numerical Output
(Million)
Livestock Number (Million)
Share of global herd
Off-take rate
Numerical Output
(Million)
Livestock Number (Million)
Share of global herd
Off-take rate
Numerical Output
(Million)
World 1,632.90 100% 0.2175 355.2 1,088.90 100% 49% 531.5 914 100% 52% 475.8
Africa 284.6 17% 0.1472 41.9 316.2 29% 36% 115.2 320.4 35% 35% 111.6
Sudan 28 2% 0.3 8.4 56.2 5% 46% 25.7 43.4 5% 44% 19.2
Sudan Animal Population & Its contribution to World Animal Population
Live Stock (Million $) 28000 8430 3255 39,685
Meat Produc?on (Million $) 8400 3855 1440 13,695
Industry
Average 2,670 10,199 9,828 733
Value Es?mate (1000 $) 26700 30597 14741.5 1100 73138.5
Data Source Bovine Sheep Goats Camel
Ministry of Animal Resource 3,510 13,497 13,483 200
Leather Chamber(Tanneries) 1,800 8,000 7,000 2,000
F.A.O. 2,700 9,100 9,000 N.A.
Hides & Skins Production Estimates
Stake Holders
� Pastorals
� Butchers
� Collectors
� Traders
� Tanneries
� Leather Manufacturers
� Governments (Veterinary Authorities, Trade Authorities, Local Authorities, Industrial Authorities, Financial Authorities)
� Local Societies
� Consumers
Value Chain
The sector value chain consists of the following chains:
� Pasturing
� Slaughtering
� Tanning
� Leather goods production
Value Chain
Stage Industry Components
Inputs Outputs
Live Animal
Raw Cow, sheep, goat, camel Products Animal ready for slaughtering HR Husbandry, Vets Bi-products Milk Technology Breeding, feeding Infrasturcture Vet. Services
Slaughtering
Raw Animals ready for slaughtering Products Meat
HR Slaughterer, vets, Bi-products hides and skins, intestines, biogas, fertilizers
Technology Sluaghtering, cooling, manufacturing (cuts), preservation
Infrasturcture Slaughtering, freezing, chilling, transporting
Tanning
Raw hides and skins Products wet-blue hides and skins, crust, finished leather
HR Tanners, techitians, managers, adminstration staff
Bi-products raw material for gelatin, leather boards
Technology Tanning, finishing Infrasturcture Tanneries, water treatment, supplies
Leather goods production
Raw Finished leather, accessories, components
Products Shoes, leather products
HR Shoe makers, designers, skilled labor, managers
Bi-products
Technology Manufacturing, designing, Infrasturcture Factories, workshops,
Chain Analysis
Stage Internal Analysis
Resources Values Expectations S W S W S W
Live Animal
Raw Avilable Quality issues Branding animals is a cultural issue
Government is starting to focuse on the sector as one of the export oriented sector after the loss of the petrol renenwes
HR Avilable Week, not trained The Pasturals are mostly illitrate
Technology The government dosen't have extended vet services
Infrasturcture Needed Infrastructure is not available in pastoral areas
Slaughtering
Raw Avilable Quality issues Government is starting to focuse on the sector as one of the export oriented sector after the loss of the petrol renenwes
HR Avilable Week, not trained The Islamic slaughtering gives better quality of end products due to the intensive bleeding
The week knowledge about the flaying effect on quality is causing a very big damage in the resource value
Technology
Avilable week, need update
The case de-skinning of sheep and goat gives better quality in skins from flesh side
Infrasturcture Avilable week, need update
Tanning
Raw Avilable need improvement in slaughtering, preservation, collection and transportation
Government is starting to focuse on the sector as one of the export oriented sector after the loss of the petrol renenwes
HR Avilable Week, need training Technology Avilable not up-to-date Infrasturcture Avilable need more investment
Leather goods production
Raw
Avilable need improvement in slaughtering, preservation, collection and transportation
Government is starting to focuse on the sector as one of the import substitutes sector after the loss of the petrol renenwes
HR Avilable Week, need training
Technology
Avilable not up-to-date The traditional shoes (Markoub) is one of the biggest products in this market
Infrasturcture Avilable need more investment
Chain Analysis
External Analysis
Stage Political Economical Social Technological Environmental Legal
O T O T O T O T O T O T
Live Animal
Problems in Petroleum sector with the South
Fighting in Darfur Avilabiltiy of Livestock
High taxation and levies
Environmanal Foot print
Political Instability Need for hard currency resources
Absence of infrastructures for the sector
week financing resources
Slaughtering
week financing resources
International Environmental regulations
absence of infrastructure for the industry
High taxation and levies
Hides and skins improvement law not in effect
Tanning
Avilability of raw material
Absence of infrastructures
Branding Case de-skinning for sheep and goat
International Environmental regulations
Labour Law
Need for hard currency resources
week financing resources
Good quality of leather fiber
Bad flaying for cow hides
Absence of infratructure for the indusrty
High taxation and levies
Leather goods production
Need for import substitution
Week financing resources
Avilability of raw material
Bad quality of tanning due to old technology
Labor Law
Absence of infrasturctures for the industry High taxation and levies
Chain Analysis
SWOT Analysis Strengths Weekness Opportunities Threats
Avilabiiity of resources (Raw material & Human resources)
Training Defecet in hard currancy Finance
Avilability of local market Technology used Increasing human consumption
Increased Environmental awareness
Avilability of international markets Absence of supporting
services
Cost of production
Quality control Internal Conflicts & war
International and regional competition
Legislations (Labor law + Hides & Skins law)
Absence of infrastructure