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Leather Industry News

Trade stats January-June 2019

Published: 31st Jul 2019

Pretoria, Gauteng, SA (July 31, 2019) – The SA Revenue Services released trade statistics for June 2019 which showed that the value of the value of hides, skins & leather trade - imports and exports - has fallen this year by comparison with last year, while the value of footwear & accessories trade - imports and exports - has increased. The former figures would have been influenced by the global drop in hides and skins prices.
       Hides, skins & leather trade shows a small trade surplus, while footwear & accessories trade shows a large trade deficit.
       Hides, skins & leather exports for June were worth R298 454 569, while imports amounted to R299 038 667 for a trade deficit of R584 098. The cumulative export figure for January-June was R1 744 940 232 by comparison with R2 098 772 313 for the same period last year. The cumulative import figure for January-June was R1 719 019 253 by comparison with R1 723 207 758 for the same period last year.
       Footwear & accessories exports were worth R205 189 052, while imports amounted to R1 310 668 020 for a trade deficit of R853 610 096. The cumulative export figure for January-June was R1 365 842 651 by comparison with R1 310 668 020 for last year. The cumulative import figure for January-June was R6 683 123 167 by comparison with R6 096 803 721 for the same period last year.

D-Day for ostrich industry

Published: 8th Jul 2019

Pretoria, Gauteng, SA – The Competition Tribunal will hear final arguments today in the application by Mosstrich and Klein Karoo International to merge after the Competition Commission earlier this year rejected their application.
       In a release last Monday, the tribunal said:
Two of the largest companies in the ostrich industry are approaching the Tribunal this week in a bid to have a decision by the Commission – to prohibit their merger – reconsidered.
       The Commission earlier prohibited the merger between Mosstrich (Pty) Ltd and Klein Karoo International (Pty) Ltd, after finding that the merger would result in a near monopoly in the market for ostrich meat and feathers. The Commission also found, among others, that the merger was aimed at eliminating competition between the two companies and that they would control the entire value chain of the ostrich industry if the merger was approved.
       However, the companies argue that the proposed transaction is an attempt to stabilize the ostrich industry which is in a state of decline. They submit that there is no incentive for them to exploit the local market. They maintain that the case, on the whole, does not make out a case for prohibition. They also submit, among others, that the proposed merger will aid the survival of the ostrich industry and create jobs.
       The Tribunal is hearing evidence from various witnesses this week including the two companies, competitors/farmers, retailers and economic experts. The matter has been scheduled for hearing this week and final arguments will be heard next Monday, 8 July 2019. 

Lanxess mine strike 'not expected to affect global supply'

Published: 8th Jul 2019
Author: Tony Dickson - S&V Editor

Johannesburg, Gauteng, SA – Chemical company Lanxess, one of the major suppliers globally of chrome used in tanning, told S&V last week that the strike at its Rustenburg chrome mine had ended on June 27 and that production is expected to resume this week.
       It said it "did not expect that the strike would result in a shortage of supply, in South Africa or internationally."

Meat residue testing: Another blow to ostrich and game industries

Published: 5th Feb 2018
Author: Tony Dickson - S&V Editor

Oudtshoorn (SA) – SA - European Union concerns over the monitoring of residues in South African meat exports - specifically ostrich, crocodile and venison - may lead to a complete ban on the export of SA meat to the EU, according to an article in the Oudtshoorn Courant on Friday.
       It said a ban would also apply to partially cooked meat - which the ostrich industry has been developing to circumvent the ban on raw ostrich meat caused by Avian Influenza.
       A ban would also affect the venison industry, which has been waiting for the EU to lift a 7-year ban imposed because of an outbreak of foot-and-mouth disease (FMD).
       The EU has just released a report by a team which visited in February last year to inspect the residue monitoring programme run by the Department of Agriculture, Forestry & Fisheries (DAFF), which checks for the presence of growth stimulants, antibiotics, pesticides and herbicides in game and ostrich meat.
       The Courant said the EU's audit report indicated that the planning, testing and follow-up procedures in DAFF's programme were largely adequate, but that there were shortcomings in the system which put the results in doubt.
       The shortcomings included the use of unsuitable analytical models, the failure to get all samples tested in time, and the failure to test for certain substances.
       Restrictions on meat exports impact significantly on ostrich and game leather, less so on crocodile.

Kenyan tanneries embrace international best practices

Published: 28th Apr 2017
Author: Republished from East Africa Trade and Investment Hub; May 18; 2017
From May 4 - 16, the Hub partnered with its grantee IL&FS Cluster Development Initiative and the Central Leather Research Institute to facilitate a two-week leather-training workshop for representatives from Kenyan tanneries and education institutions. The training, conducted at the Kenya Research Institute, the premier product innovation and development training facility for small and medium-sized enterprises, focused on clean and efficient leather processing technologies.
Ominde Elvis from Dogbones Tannery, one of the participants who benefited from the training says,   “It has been an informative and empowering session, especially the training on cleaner production techniques. I have learnt new methods of utilizing waste products by converting them into valuable finished goods.”
  “The training was excellent. I learnt a lot, especially how to improve the leather sector using new technologies like waterless chrome tanning, and recycling chemicals in order to minimize the total dissolved solids in the effluent treatment,” said Jane Mwikali, a Leather Technologist from University of Nairobi.
The training series is part of the Kenya Leather Industry Development Program (KLIDP), implemented by the Hub’s grantee IL&FS Cluster Development Initiative that aims to increase the competitiveness of Kenyan leather products for export, and to attract investment in the sector.
©2017 S&V Publications