S&V Weekly Newsletter Vol.7 No.49, December 6 2021
Please note: Click on any ad to go to the advertiser’s website
Footwear factories: Some closing early, others very busy
Durban, KZN, SA – Some footwear factories have already closed for the year or are closing shortly, while others are still very busy, SAFLIA executive director Jirka Vymĕtal said this morning.
"This is the time of year when historically, all footwear factories are extremely busy getting out orders. In a way it's worrying, and it shows just how disjointed this whole situation with Covid is."
Re-imposition of the 'Red List'
The unexpected renewal of travel bans to and from a long list of countries, including our major tourism markets, will have a serious effect on many of our more creative leather goods and footwear manufacturers, especially those based in the Western Cape. We asked nearly 40 of them last week what their thoughts were. Only Justine Schäfer of Cape Cobra Leathercraft responded:
Is the SA Government doing enough to get this reversed? To be honest I just don’t know? I assume they are doing all in their power, however we don’t know. This is a serious knock for our industry and we need it to be addressed without hesitation as every day that progresses is a day of lost revenue.
Do you get the sense that this ban will be reversed within a short period (say a couple of weeks)? That is what we are hoping for - although I do not think the UK will reverse the ban.
Will you survive this ban? No.
Do you think It seems likely that bans of this nature will become a regular event? According to what health authorities are advising, I would say no - however we can expect regular waves.
Is online shopping a realistic alternative for you? Yes, however it does not come close to physical shopping.
How much can domestic tourism make up for this ban? 5%
What other alternatives can you suggest? -
By contrast, I had more positive feedback this morning from Cape Knife Cutting:
Much better than last year
Cape Town, W. Cape, SA – Cape Knife Cutting "hasn't been much affected and is doing quite nicely", member Hadley Craig said. "The corporate market is still dead, but we've diversified. We had a nice run on menu covers, our backgammon travel set is doing quite nicely with people stuck at home, and we're doing some export business via one of our customers. Last year was difficult, but this year has been quite good."
The further away from Cape Town, the less the effect, it seems. Today, we got this response from Hennie Pienaar of Der Lederhändler in George.
More dependent on local markets
Cape Town, W. Cape, SA – Is the SA Government doing enough to get this reversed? I really don’t know what they are doing, so can’t reply.
Do you get the sense that this ban will be reversed within a short period (say a couple of weeks)? I doubt it if it would be within a week or 2. Although the ban doesn’t make sense, it is a big ship to steer.
Will you survive this ban? Yes, by the grace of God we’ll survive.
Do you think It seems likely that bans of this nature will become a regular event? Yes, I think it would be a regular occurrence.
Is online shopping a realistic alternative for you? At this stage, due to loyalty, we refrain from on-line sales as we expect of our retail customers to generously stock our products in their outlets.
How much can domestic tourism make up for this ban? We are not really affected by international tourism. Most of our customers are focussed on the local market.
What other alternatives can you suggest? I think on-line sales would be the only quick fix, but the future lies in the ability to process quick changes in various aspects of existing business.
Sentiment cruises to a record high in the latest Agribusiness Confidence update
Comment by Paul Makube, Senior Agricultural Economist at FNB Agri-Business Johannesburg, Gauteng, SA (02 December 2021) – Unlike the RMB/BER Business Confidence Index that remained stable at 43 index points in 4Q21, the Agbiz-IDC Agribusiness Confidence cruised to a second record high since 2001 at 74 points which is indicative of robust domestic trading conditions and another year of favourable seasonal production outlook (2021/22).
This survey outcome suggests that while recent input costs escalations are likely to erode producer margins, the relatively higher agriculture commodity prices and another excellent seasonal outlook following the 2020/21 bumper harvests far outweighed these concerns.
The latest production estimates point to another bumper crop for 2021/22 production season with total maize and soybean expected planted area projected at 2.76m ha and 827,100 ha respectively. Assuming average yields of 6.22/t and 2.68/t respectively for maize and soybeans achieved during 2020/21 given the bullish weather outlook, South Africa is likely to produce more than 17m tons of maize and 2.22 million tons of soybeans.
The upswing in capital investment is most welcome and indicates long-term industry sustainability through asset replenishment and replacement. The banks have been solid behind agriculture amid the low interest rate environment, and this is reflected in the 9 points drop in the financing costs subindex to 46. It is important to recall that farmer finances took a serious knock due to 2015/16 drought and it generally takes time to recover.
Nonetheless, the past two years have been relatively fantastic, and we look forward to another year of solid performance from the agriculture sector.
Stock Exchange News Service (SENS)
TFG acquisition of Quench
Cape Town, W. Cape, SA (02 December 2021) – TFG has entered into an agreement to acquire the entire issued share capital of Quench (Pty) Ltd. Quench is an on-demand app that has been delivering from selected retailers and partners to homes and businesses since 2016.
In case you missed it!
The November issue of S&V Footwear & Leather Goods Magazine
S&V Footwear & Leather Goods Magazine Vol87 No11 November 2021
IN THIS ISSUE:
03 Productivity
- 'Unless we improve productivity, footwear manufacturing in SA will slowly wither away,' according to a study commissioned by SAFLIA.
- National Bargaining Council: Contribution 'holiday' extended.
05 The U.S. Market
- Gender fluidity in fashion is a growing trend, says the NPD director of apparel market insights, Kristen Classi-Zummo.
06 Sector News - Fashion
- Calvin Klein SA distributorship - An opportunity born of lockdown and Edcon's demise.
- Barbie gets an SA makeover with designer Gert-Johan Coetzee and Europa Art.
- Alisam seeks market for its fish skin leather shoes.
09 Sector News - Leather Goods
- Richemont and Farfetch striving to increase online sales for the entire luxury industry.
10 Sector News - Safety
- Lemaitre expands into new terrains.
11 Sector News - School
- No more exclusive supply agreements for school uniform retailer after Competition Tribunal confirms consent agreement.
12 Exporting
- 'There's no one right answer to growing exports in our current, ever-changing environment - we need to think out of the box,' says new SAFLEC chairman.
13 Technology
- Global standards laboratory SGS talks about the advantages of colour matching via digitalisation.
14 Sustainability
- U.S. legal site says companies seeking to promote 'green' credentials should get their claims checked by an attorney.
- VF Corporation releases profile on inclusion, diversity, equity and action - but is it really real?
15 Fairs & Events
- MICAM Milano 93: Featuring 'glamorous magic' for February edition.
- Blossom Première Vision the industry's first in-person event for spring/summer 2023.
16 Notice Board
- Graham Gradwell obituary: A master of women's fashion footwear.
- Michael Clark obituary: A talented man who overcame an addiction to leave a very human legacy.
18 Rapid Response Fund Guidelines
- Dr Jaywant Irkhede of the DTIC wants all businesses affected by the July rioting and looting to be aware of changes to government relief funds.
Advertisers in this Issue
Angelsoft Shoes (13), BBF Safety Group (OFC), Caterpillar / Medicus Footwear (08), Caterpy No Tie Shoelaces (12), Freestyle Genuine Handcrafted Leather (02), Italtan (10), Karma / Caterpy (09), Manock Naturals (10), SA Footwear & Leather Export Council (09), Saddler Belts (04).
In The Next Issue:
- Innovations - Manufacturers who are making genuinely different products.
Out on January 21
CLICK HERE TO VIEW IT ONLINE
They Said It
"I'm going to fade away into the sunset and teach my grandsons how to fish." - Yusuf Kadwa, who has sold May's Shoes in Durban, KZN, SA, to Muhammad Bassa, a newcomer to the footwear industry. Kadwa, who is 76, and his sales manager, Meela Seupersad, who also officially retired last Tuesday, have been with May's since City View Centre opened 36 years ago. The other 2 staff are staying on.
"Sorry for my late reply …as you can see we may have had two years of lockdown but some things don’t change…I still take long to reply." - Rabin Nagesar, Sew Solutions, Pinetown, KZN, SA.
"Now, if you think you are puzzled, imagine myself… being in the leather industry…" - Quintin Marais, Rolfes Leathers, Boksburg, Gauteng, SA on a possible event which I'm not allowed to mention. All I can say is I find the whole thing very fishy.
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za
06/12/1970: Ryan Hansen, left the industry, formerly with CL Hansen Agencies, Durban, KZN, SA.
07/12/1947: Denton Estment, retired, formerly Tuftex, Pinetown, KZN, SA.
07/12/1960: Faldiela Paulsen, Dynatrade, Sandton, Gauteng, SA.
07/12/1973: Brendan Thomas, Techmelt & Polymers, Pinetown, KZN, SA.
08/12/1970: Doug Turner, Uniek Leatherworks, Polokwane/Pietersburg.
08/12/1972: Alan Shadbolt, Castaway Components, Cape Town, W. Cape, SA.
08/12/1978: Barbara Wessels, Fleur Avant, Stellenbosch, W. Cape, SA.
09/12/1944: John Watt, Bresan Footwear, Pietermaritzburg, KZN, SA.
09/12/1949: Bob Ludlow, Albertina Bay, Durban.
09/12/1957: Rory Anderson, Rory Anderson Agencies, Cape Town.
09/12/1979: Naseem Tadia, Less Price Fashions, Nigel, Gauteng, SA.
09/12/1977: Yusuf Salie, AM Showroom/Shoe City, Marble Hall.
09/12/1990: Trent Hawke, Chillisource, Durban.
10/12/1954: Rolf-Dieter Fuchsmann, ?, formerly DED, Ethiopia.
10/12/1965: Benson Gor Okumu, Bata SA, Pinetown.
11/12/1965: Anwar Cassim, Catwalk Footwear Manufacturers, Durban.
12/12/1937: M Kadwa, Umzinto Wholesalers, Umzinto.
12/12/1949: Johan Barnard, Envirotan, Port Elizabeth.
12/12/1956: Chandrakant Dajee, Avalon Job Buyers
12/12/1970: Kobus Louw, Morgan Beef/Brits Leathers, Pretoria.
12/12/1980: Craig Lahee, Ritewear Footwear, Cape Town.
In Memoriam this week
-
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.
Directory updates this week
Association of SA Manufacturers of Luggage, Handbags & General Goods, Johannesburg, Gauteng, SA.
Bata Kenya, Limuru, Kenya.
FC & T Supplies, Heidelberg, Gauteng, SA.
Fusion Leather World, Cape Town, W. Cape, SA.
Hashtagleather, Durbanville, W. Cape, SA.
Mr Price Apparel, Durban, KZN, SA.
New subscribers this week
John, Blue Net, Johannesburg, Gauteng, SA.
Gert Muller, Sonop, Bethlehem, Free State, SA.
Charmane, Arie Shoe Palace, Alexandra, Johannesburg, Gauteng, SA.
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 ¥ |
| 2021/11/14 |
R17.54 |
R20.56 |
R15.33 |
R2.40 |
| 2021/11/21 |
R17.76 |
R21.17 |
R15.74 |
R2.46 |
| 2021/11/29 |
R18.19 |
R21.52 |
R16.12 |
R2.52 |
| 2021/12/05 |
R18.20 |
R21.30 |
R16.09 |
R2.52 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/14 |
12.97 |
15.21 |
11.33 |
1.77 |
| 2021/11/21 |
13.11 |
15.62 |
11.62 |
1.82 |
| 2021/11/29 |
13.21 |
15.62 |
11.71 |
1.83 |
| 2021/12/05 |
13.29 |
15.54 |
11.74 |
1.84 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/14 |
935.64 |
1096.78 |
817.62 |
128.17 |
| 2021/11/21 |
923.23 |
1100.15 |
818.32 |
128.12 |
| 2021/11/29 |
920.46 |
1088.54 |
815.76 |
127.86 |
| 2021/12/05 |
925.53 |
1082.78 |
818.22 |
128.32 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/14 |
20.09 |
23.55 |
17.55 |
2.75 |
| 2021/11/21 |
19.96 |
23.79 |
17.69 |
2.77 |
| 2021/11/29 |
20.07 |
23.74 |
17.79 |
2.78 |
| 2021/12/05 |
20.25 |
23.70 |
17.91 |
2.80 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
CNY ¥ |
Official US$ |
| 2021/11/14 |
414.14 |
485.46 |
56.73 |
99.93 |
| 2021/11/21 |
408.29 |
486.53 |
56.66 |
Not available |
| 2021/11/29 |
408.26 |
482.79 |
56.71 |
105.66 |
| 2021/12/05 |
409.36 |
478.92 |
56.75 |
105.68 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (01 December 2021) - The current average hide price increased by 4.6% to R5.20/kg from R5.0kg a week ago. The current price is 2.3% higher than the average price a month ago and is 43.3% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.55 Maximum price: R5.80. Please note, we have changed our methodology and price levels are not directly comparable to previous prices that we reported on. Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, 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 |
|
|
| 2021/07/02 |
8.25 |
42.21 |
66.00 |
| 2021/07/09 |
9.53 |
46.39 |
64.00 |
| 2021/07/16 |
8.17 |
39.00 |
61.00 |
| 2021/07/23 |
8.44 |
43.33 |
67.50 |
| 2021/07/30 |
7.57 |
39.00 |
61.00 |
| 2021/08/06 |
9.60 |
39.63 |
64.00 |
| 2021/08/12 |
9.93 |
|
|
| 2021/08/23 |
|
41.40 |
64.00 |
| 2021/09/09 |
9.78 |
|
|
| 2021/09/16 |
8.96 |
|
|
| 2021/09/23 |
8.89 |
|
|
| 2021/09/29 |
6.40 |
39.60 |
65.00 |
| 2021/10/07 |
6.27 |
|
|
| 2021/10/11 |
5.68 |
41.00 |
64.00 |
| 2021/10/21 |
5.34 |
45.00 |
64.00 |
| 2021/10/28 |
5.11 |
45.00 |
64.00 |
| 2021/11/04 |
4.67 |
40.29 |
64.00 |
| 2021/11/11 |
4.64 |
39.50 |
65.00 |
| 2021/11/18 |
4.63 |
39.50 |
65 |
| 2021/11/25 |
5.00 |
|
|
| 2021/12/01 |
5.20 |
|
|
Note: For previous prices, see HERE
Have a look at these links
We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Northcliff Orthopaedic Centre, Johannesburg, Gauteng, SA. Orthotics and prosthetics.
G. Fox, Johannesburg, Gauteng, SA. Workwear distributor.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: December 13, 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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