S&V Weekly Newsletter Vol.7 No.29, July 19 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
The aftermath
Back to work for those who can, time to assist those who can't
Almost all businesses in the leather, footwear and leather goods manufacturing industries and their suppliers in KZN will return to work this morning after last week's savagery. The same appears to be true of footwear wholesalers, but the same won't be true for many retailers, and while the chains will be able to rebuild, it will be much more difficult for independents and mini-chains, including some of the best known names in the industry.
One key supplier was hit. The head office and warehouse of A. Greenaways (Natal), probably the largest supplier in SA of synthetic upper materials to the footwear and leather goods industries, was totally burnt down by looters last Monday, destroying "many millions" worth of stock.
That, however, was only the beginning of the damage, said Greenaways' sales member Shaun Ribbink.
He estimated 50% of the stock had been pre-sold, meaning his customers won't be able to deliver (mostly chain) orders. With the current global chaos in shipping, the earliest the material will be able to be replaced will be 2 months, he said. On top of that, prices in China are rising, and the Rand has dropped steeply.
"Will retail accept those orders at all, and if they're prepared to, will they accept the higher prices? From what we've seen so far, the answer will probably be 'no' on both counts," he said. "Most of that business has gone, forever."
Some, however, may be saved, although at the cost of other orders; Greenaways has 10 containers at various points along the supply line, including 4 in Durban harbour - fortuitously not delivered prior to the arson. Greenaways' problem now is to find warehouse space for it. He said a number of footwear manufacturers had offered space.
For Ribbink and his father, Garth, the first question was: Do they start again? On Thursday last week, they looked to be in two minds. They are, however, a fighting family, and yesterday, Garth confirmed they had signed a lease for premises in Springfield Park to take delivery of a container today.
He also said he had been contacted by Dr Jaywant Irkhede, director: leather & footwear at the Department of Trade, Industry & Competition. "He's a good listener," he said. "I was very impressed."
Only 1 footwear factory, women's custom leather footwear manufacturer Sweet Peas, was reported affected. Directors Stacy and Ché Peinke posted on their website: "We are so overwhelmed with the love and support that we have been shown ...with regards to our beloved factory being looted and destroyed...We will rise above this all."
In Pietermaritzburg, tanneries Cordova Leathers and Leather From Hart, which operate from the same premises in Plessislaer, were unaffected, Cordova director Jonathan Munro confirmed last night.
Wholesalers Foot Focus and Deluxe Footwear in Durban and Jumbo Footwear in Pietermaritzburg confirmed they had not been looted, and neither knew of others in their sector who had been.
Several of the listed retail chains issued statements on the looting via the Stock Exchange News Services (SENS).
On Wednesday, Mr Price Group reported that 109 of its 1 592 stores - approximately 7% - had been "entirely looted", and that it had had to close 539 stores across its 6 divisions (for the full report, see http://www.sharedata.co.za/v2/Scripts/News.aspx?c=MRP&sensid=390439).
It said it was confident that its physical losses would be covered by SASRIA, although "the group is aware of the potential risks of claims pay-outs being delayed and possibly impaired due to the high volumes and values expected to be submitted by numerous impacted businesses".
It said its other priorities "include the continuity of stock flow to its unaffected stores and the speedy restoration of trade in its damaged stores. The pace at which this can be done will be dependent upon the extent of the damages and external bottlenecks elsewhere in the supply chain including the Durban port, logistics and distribution operations, and the ability of local suppliers to continue production."
On Friday, TFG, Pepkor and Massmart issued statements.
TFG said "approximately 190" of its around 3 000 stores had been "looted and damaged to varying degrees. Furthermore, all KZN stores are currently not trading due to safety concerns. A distribution centre operated by one of our logistics service providers as well as the manufacturing premises of one of our local suppliers have also been damaged by fire during the unrest, the impacts of which are not material to our supply chain." It said the timelines to reopen "will be quick in some locations whilst in others will be dependent on the nature and extent of the damage and on the availability of the relevant resources and supply chains". (For the full report, see http://www.sharedata.co.za/v2/Scripts/News.aspx?c=TFG&sensid=390650)
Pepkor said 489 stores - approximately 9% of the total - had been damaged and looted. A distribution centre for its JD Group of furniture stores - 1 of 16 distribution centres nationwide - had also been looted.
"The group’s supply chain and distribution operations in the affected areas have been severely disrupted and numerous additional measures, including tactical security, have been put in place to safeguard the group’s distribution infrastructure and assets. The group continues to closely monitor the situation and is in constant contact with law-enforcement agencies, security service providers and other relevant stakeholders." (For the full report, see http://www.sharedata.co.za/v2/Scripts/News.aspx?c=PPH&sensid=390640)
Massmart, whose Makro Springfield store and distribution centre were an epicentre of the violence, said that "protestors gained access to and made off with merchandise in 18 Cambridge stores, 10 Game stores, 8 Builders stores, 3 Cash & Carry and 2 Makro stores. Two of our Distribution Centres have also been directly impacted. Altogether four facilities have suffered significant damage due to arson."
(For the full report, see http://www.sharedata.co.za/v2/Scripts/News.aspx?c=MSM&sensid=390617)
Among independent and mini-chain retailers, in Durban, NV Clothing Member Nirun Dowlath said all 5 stores had been hit, with 4 looted and 1 looted and burnt. He declined to estimate the losses. "I'm taking it 1 day at a time, and we'll reopen1 store at a time as the space becomes available," he said.
Ginger Bhagwandas Member Sunil Bhagwandas confirmed all 5 stores, plus the chain's warehouse, had been looted.
In Ladysmith, Favourites American Member Haroon Moola said his Empangeni store had been looted, but that he hadn't been able to get hold of the managers of some of his other 4 stores.
In Pinetown, American Outfitters Member Nilen Vanmali said all 5 stores and the mini-chain's warehouse had been completely looted, with no stock left. He said he hadn't yet looked at how much the business had lost, nor at the way forward.
Treadsafe Member Rob McCann said "hundreds, possibly thousands" of people had descended on the complex housing his PPE retail shop, warehouse and mask factory, along with other businesses, after looting the Pick 'n Pay distribution centre, unchecked, for a day. He said the majority of the stock had been looted, and if another tenant "hadn't arrived and started shooting", it would have been everything.
He said the looters had also tried to set the complex on fire.
He declined to say how much Treadsafe had lost, or how much it was covered for, but the losses were "in the millions". He said he was "considering his options" about the future, and that it would be "like starting over".
In Pietermaritzburg, Californian Outfitters had both of its stores looted.
In Port Shepstone, 6-store Brandz member Naseem Essack said: "We have lost 4 stores, all very badly affected. We have not been able to ascertain and/or quantify losses as the area is still very volatile to visit."
Others known to have been affected in various parts of the province were JD Outfitters, American Outfitters, Winners, Regent Tailors, YM Seedat and Pienaar Brothers (North).
There have been a number of offers to help rebuild and assist in various ways:
On Thursday, SAFLIA executive director Jirka Vymĕtal engaged with the DTIC's Dr Irkhede "to see what immediate short term assistance can be given, such as UIF TERS and CCMA TERS assistance to support staff".
"A week's loss of production and turnover is another huge financial blow. The ramifications will be felt for some time, and down the line all manufacturers will be affected, due to the severely damaged supply chain which is mainly in the Durban area.
"As the damage and ramifications are assessed going forward, there will certainly be more areas that will need to be addressed and interventions put in place. The key element is a speedy resolution. We cannot afford to let red tape and the slow wheel of bureaucracy hold up assistance."
Specifically, he discussed with the DTIC ways of helping Greenaways, all of whose documentation relating to its bonded warehouse were destroyed.
"I was saddened to hear of the destruction of Greenaways, which is a key supplier to our industry. My sympathies go to the Ribbink family."
The DTIC has undertaken to assist manufacturers and their suppliers. In an email yesterday, Dr Irkhede wrote: "The CTFL Unit of Industrial Competitiveness & Growth Branch (ICG) of The Department of Trade, Industry and Competition (the dtic) was in consultation with organized business, organized labour and the three bargaining councils in assessing the extent of damage to the CTFL establishments in KZN.
"Up to Friday, the dtic recorded damage to 22 CTFL establishments in KZN, of which 6 were completely torched and 16 had been severely looted and damaged. This includes 5 clothing factories torched to ashes and 8 completely looted at Madadeni, Newcastle, putting 8 000 workers out of work. Around Durban 4 clothing factories and 2 home textile factories were completely looted and damaged. In the footwear sector the strategic establishment Greenaways Natal was completely torched and damages to Dick Whittington Shoes and Sweet Peas have been reported."
He said his department had made several suggestions to DTIC Minister Ebrahim Patel, including:
1. Insurance sector: Hon Minister to interact urgently with Insurance Industry and specifically with SASRIA to review if the damage/losses due to the "unrest" is covered/regulated under insurance policy framework and request ramping up of insurance claim settlement on a very short term turnaround basis.
2. Weekly wages continuity: The crisis is expected to escalate into "food crisis" and CTFL weekly wage earners may feel aggravated due to loss of wages. Thus additional directives under the well functioning UIF TERS may be the dtic and DOEL bilateral strategic priority in favour of the CTLF industry. The dtic CTFL unit consulted SACTWU, NULAW, SAFLIA, NBCLI, NTBC & NBC.
3. Incentive: Additional policy lever / instrument be introduced in the CTFL incentives for 2021-22 to support recovery of damages to the TCFL manufacturing establishments due to the unrest.
4. SARS / Customs: Support the CTFL retail trade and industry in efficient customs clearance of imported primary input materials, imported finished goods and certifying destroyed rebate facilities.
"A large part of the textile and clothing establishments and about 85% of South African footwear manufacturing economy was at 100% standstill in KZN," he wrote. "The DTIC is sincerely thankful to the KZN Footwear industry employers and employee for demonstrating tremendous positive spirit, proactive community engagement, offering financial support to the employee and to Mr. Gareth Ribbink for his confidence who promised to rebuild his business in support of the footwear industry.
Dangee Carken MD Robby Stoller and its KZN agent, Joe Klue, have been speaking to independent customers to discuss ways of helping them to get back on their feet. No doubt many other manufacturers and importers have been doing the same.
Twin concerns for everyone affected are: How could this have happened? And why was the response of the police and the army so slow and so ineffectual?
The attack on Greenaways was an example of the most destructive behaviour last week, and the nature of it is what most puzzles the Ribbinks.
The attackers first broke into and looted Greenaways and the 4 other businesses at the start of Saxon Avenue, in Mayville, a stone's throw from the sprawling informal settlement of Cato Manor. In Greenaways' case, the only items of interest were computers and some other office equipment, and if they'd stopped at that point, the looters would have got as much as they could, financially, and Greenaways would have been able to restart with fairly minor setbacks.
But the looters then set fire to the buildings.
Greenaways and its neighbour across the road, Ubertex, were crammed with highly inflammable fabrics, which created very hot fires. Greenaways' 2- and 3-storey brick and concrete buildings are buckled and cracked, and will have to be demolished entirely.
Oddly, the mob didn't go further down the road, and the KZN branch of fellow footwear and leather goods component supplier Mendelson & Frost was untouched.
"They seem to have run out of steam," said Shaun sourly.
The looters took the time to paint a message on the gate of Greenaways' neighbour: "F..k Cyril. We want Zuma back."
From the many reports and opinions on TV, and from the several anecdotal reports I've had from witnesses to various events last week, it seems there are at least 4 distinct groups among the looters, and probably more. Most numerous among these were probably the unemployed and the desperate, followed, in numerical terms, by a despicable group of employed people who treated this as bargain hunting. There was also organised crime, stocking up its supply chains. And finally, there does seem to have been a politically-motivated group - small or large, linked or independent, spontaneous or planned, I don't know - whose intentions included driving out white and Indian businesses, which explains the otherwise pointless arson.
They Said It
"Always remain positive." - Robby Stoller, Dangee Carken, Johannesburg, Gauteng, SA, on how to deal with the anarchy that has rocked SA.
"It looked like Black Friday gone mad." - Dr Jaywant Irkhede, the DTIC, Pretoria, Gauteng, SA, on the looting. Our normally very serious director: leather & footwear at the Department of Trade, Industry & Competition has a dry sense of humour
Directory and Calendar updates
The S&V Directory and the S&V Calendar are dynamic documents, undergoing ongoing constant updating. Readers are therefore advised to refer to them at least once a week.
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the lockdown that you'd like to share with the industry? We will publish the throughout the lockdown, so please let us know. - tony@svmag.co.za
19/07/1946: Mohamed Iqbal Ahmed, A.V. Mohamed & Sons, Louis Trichardt, Limpopo, SA.
19/07/1967: Fatima Do Tanque, Super Save, Aliwal North, E. Cape, SA.
19/07/1968: Hussein Feyssa, Hafde Tannery, Addis Ababa, Ethiopia.
19/07/1977: Shantell Sables, Elan Polo, Cape Town, W. Cape, SA.
21/07/1965: Gavin Cooke, Rebel Safetygear, Johannesburg, Gauteng, SA.
22/07/1948: Roy Nell, Roy Nell Agencies, Durban, KZN, SA.
22/07/1960: Holger Stutz, Paul Moeller & Co, Johannesburg, Gauteng, SA.
23/07/1940: Errol Schilder, retired, formerly Barker Footwear, Cape Town, W. Cape, SA.
23/07/1954: Jerome Ingenhoes, Exotan, Port Elizabeth, E. Cape, SA.
23/07/1956: Rob Peschel, emigrated, formerly Outeniqua Tanning [closed], George, W. Cape, SA.
24/07/1982: Thembi Mazibuko-Kahimbaara, Leather Zulu, Randburg, Gauteng, SA.
25/07/1949: Leslie D'Unienville, agent, Durban, KZN, SA.
25/07/1952: Antoine Lailvaux, agent, Durban, KZN, SA.
25/07/1948: GH Moosa, Riley Trading, Pietermaritzburg, KZN, SA.
25/07/1948: Duncan Naidoo, Lugogo, Pietermaritzburg, KZN, SA.
25/07/1974: Morné Gerber, The Little Slipper Company, Port Elizabeth, E. Cape, SA.
In Memoriam this week
20/07/????: Ivy Cunningham (b. 16/10/1919), In Step Shoes [closed], Pietermaritzburg, KZN, SA.
22/07/1993: Paul Hoch, Edendale Tannery [closed], Pietermaritzburg, KZN, SA.
22/07/1993: Chagan Ratanje, RK Footwear, Harare, Zimbabwe.
22/07/2008: Derek Brown (b. 13/01/1948), Derek Brown Agencies, Johannesburg, Gauteng, SA.
25/07/2004: Jules Fisher (b. 19/07/1931), Fashionette Footwear [closed], Cape Town, W. Cape, SA.
Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.
Exchange rates
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/05/22 |
R17.00 |
R19.75 |
R13.96 |
R2.16 |
2021/05/29 |
R16.79 |
R19.56 |
R13.77 |
R2.16 |
2021/06/05 |
R16.84 |
R19.49 |
R13.76 |
R2.15 |
2021/06/19 |
R17.03 |
R19.82 |
R14.36 |
R2.22 |
2021/06/26 |
R16.88 |
R19.63 |
R14.14 |
R2.19 |
2021/07/03 |
R16.91 |
R19.70 |
R14.25 |
R2.20 |
2021/07/12 |
R17.04 |
R19.91 |
R14.35 |
R2.21 |
2021/07/17 |
R17.02 |
R19.85 |
R14.42 |
R2.22 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/05/22 |
13.06 |
15.18 |
10.73 |
1.66 |
2021/05/29 |
12.97 |
15.10 |
10.63 |
1.67 |
2021/06/05 |
13.01 |
15.05 |
10.62 |
1.66 |
2021/06/19 |
12.82 |
14.92 |
10.81 |
1.67 |
2021/06/26 |
12.97 |
15.09 |
10.87 |
1.68 |
2021/07/03 |
12.95 |
15.09 |
10.91 |
1.68 |
2021/07/12 |
12.96 |
15.15 |
10.92 |
1.68 |
2021/07/17 |
12.95 |
15.11 |
10.97 |
1.69 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/05/22 |
968.84 |
1125.67 |
795.46 |
123.62 |
2021/05/29 |
963.70 |
1122.37 |
790.24 |
124.09 |
2021/06/05 |
970.94 |
1129.95 |
798.14 |
124.80 |
2021/06/19 |
948.37 |
1103.68 |
799.43 |
123.88 |
2021/06/26 |
961.88 |
1118.55 |
805.90 |
124.84 |
2021/07/03 |
958.45 |
1116.77 |
807.73 |
124.79 |
2021/07/12 |
952.21 |
1112.73 |
802.19 |
123.93 |
2021/07/17 |
955.84 |
1115.17 |
809.54 |
124.94 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
2021/05/22 |
27.44 |
31.88 |
22.53 |
3.50 |
2021/05/29 |
27.42 |
31.93 |
22.48 |
3.53 |
2021/06/05 |
27.51 |
32.02 |
22.61 |
3.53 |
2021/06/19 |
26.85 |
31.26 |
22.64 |
3.50 |
2021/06/26 |
27.04 |
31.46 |
22.66 |
3.51 |
2021/07/03 |
26.95 |
31.40 |
22.71 |
3.50 |
2021/07/12 |
26.89 |
31.42 |
22.65 |
3.49 |
2021/07/17 |
26.73 |
31.18 |
22.64 |
3.49 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ |
2021/05/22 |
440.78 |
512.13 |
361.90 |
56.24 |
84.64 |
2021/05/29 |
441.28 |
513.93 |
361.90 |
56.82 |
84.72 |
2021/06/05 |
440.25 |
512.35 |
361.90 |
56.59 |
84.76 |
2021/06/19 |
429.31 |
499.67 |
361.90 |
56.08 |
85.24 |
2021/06/26 |
431.93 |
502.29 |
361.90 |
56.06 |
85.36 |
2021/07/03 |
429.42 |
500.36 |
361.90 |
55.91 |
85.42 |
2021/07/12 |
429.43 |
501.85 |
361.90 |
55.90 |
85.50 |
2021/07/17 |
427.41 |
498.50 |
361.90 |
55.85 |
85.50 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (July 15, 2021) - The current average hide price decreased by 14.3% to R8.17/kg from R9.53/kg a week ago. The current price is 2% lower than the average price a month ago and is 1119% higher than the average price a year ago. Market stakeholders are continuing to note tight supplies. . NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Abrie Rautenbach, head Absa agribusiness, Marlene Louw, senior agricultural economist, Absa group.
Hide & skin price progression |
Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
2020/11/06 |
2.36 |
26.00 |
44.00 |
2020/11/13 |
2.38 |
23.59 |
40.00 |
2020/11/20 |
2.69 |
35.00 |
50.00 |
2020/11/27 |
3.08 |
36.00 |
49.00 |
2020/12/04 |
3.65 |
34.03 |
49.00 |
2020/12/11 |
3.68 |
33.21 |
50.83 |
2020/12/18 |
3.93 |
32.59 |
51.67 |
2021/12/25 |
4.08 |
34.39 |
51.67 |
2021/01/01 |
3.93 |
34.03 |
54.00 |
2021/01/08 |
3.88 |
31.43 |
46.43 |
2021/01/15 |
4.03 |
31.43 |
46.43 |
2021/01/22 |
4.16 |
30.00 |
47.00 |
2021/01/29 |
4.04 |
33.05 |
50.83 |
2021/02/05 |
3.86 |
31.41 |
45.71 |
2021/02/12 |
4.33 |
35.46 |
45.83 |
2021/02/19 |
4.29 |
34.49 |
50.00 |
2021/02/26 |
4.94 |
34.70 |
47.50 |
2021/03/05 |
5.67 |
38.33 |
51.67 |
2021/03/12 |
4.80 |
42.50 |
59.17 |
2021/03/19 |
4.99 |
35.74 |
52.86 |
2021/03/26 |
6.33 |
35.16 |
55.00 |
2021/04/02 |
6.50 |
31.83 |
49.00 |
2021/04/16 |
8.98 |
37.44 |
50.00 |
2021/04/22 |
8.37 |
|
|
2021/04/29 |
8.98 |
40.96 |
62.00 |
2021/05/06 |
7.56 |
40.96 |
62.00 |
2021/05/24 |
7.82 |
40.83 |
61.67 |
2021/05/28 |
7.47 |
|
|
2021/06/14 |
8.34 |
40.83 |
61.67 |
2021/06/24 |
8.31 |
|
|
Note: For previous prices, see HERE
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: July 26, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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