S&V Weekly Newsletter Vol.10 No.48, November 25 2024
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SAFLIA: Imports climb, local production drops, but cost saving measures expected
Durban, KZN, SA - While local footwear manufacturing has dropped by 15% from January to August, footwear imports have risen by almost 35% in the same period, according to Jirka Vymĕtal, executive director, Southern African Footwear & Leather Industries Association.
“Imports this year to August were up, year on year, by 34.5% to 114 725 592 pairs, versus 85 312 624 pairs for the same period in 2023,” he said.
The FOB value of the imports rose 30% from R8 648 484 056 to R11 249 817 908, but the average price per pair of the imports dropped from R101.37 to R98.06 in the same period.
With the upswing in local production leading up to December, he expected total production to be 12.5% down on last year – which was itself down on 2022.
“Imports are getting cheaper and cheaper and cheaper,” he said. “When there’s a discussion ‘in principle’ about buying locally, the chains will say importing isn’t just about price; they’ll mention factors like quick response sampling, new trends, new colours, etc.
“But when I talk to manufacturers who’ve negotiated with most chains, they say the first reaction is that their prices are out. The only thing they really care about is price.
“Bearing that in mind, SAFLIA and the unions have jointly engaged to find a way forward on this pricing issue. It seems apparent that some consensus for special dispensation has been discussed and has almost reached finality.”
Synthetic upper material plant to open in SA next year
Pretoria, Gauteng, SA - South Africa will again have a source of locally made synthetic upper material when a new PU coating plant comes on stream in a year’s time.
Unica Textile Mills SA, a division of the Unica Group, is setting up its second manufacturing facility which will house its fully integrated PU plant.
“The state-of-the-art facility will conservatively have a monthly production capacity of 450 000 meters”, MD Amir Qasim said last week. “This will be a relief for the footwear industry, which has been finding it a challenge to stabilize its supply chain, due to limited or no local production of the material.”
The division currently produces PVC coated fabrics for tents and tarps, pool covers and industrial applications under its Polyvic brand.
He said that the group plans to bring in the latest technology from the leading manufacturer of PU plants in India. The plant will be capable of producing “all types” of PU fabrics, including embossed and printed materials.
The project is expected to be completed by November 2025. The group has recently acquired a 26 000 m² property for the facility, and the project team is working to meet the project deadline.
He said that Unica is also considering setting up a production line for its own knitted base fabric, as phase 2 of the project, further localising the contents of the material.
“We’ll start by producing materials for the footwear industry, then expand into furniture and automotive fabrics,” he said.
The Unica group was founded in 1999, and aims to locally produce all of its products. Currently the group has a staff complement of 800 employees which will rise to over 1 000 with the PU coating project.
The other 2 divisions of the group are Unica Iron & Steel, which is a secondary steel producer of light to medium structural steel, used in the construction industry and other industrial applications, and Unica Plastic Moulders, which produces moulded plastic products covering a wide market spectrum from furniture to packaging solutions.
When farms battle, Free State retail does, too
Anton Klopper, Kloppers
Bloemfontein, Free State, SA - The Free State is taking strain economically and politically.
If the “platteland“ (agriculture) suffers, we feel it in retail in Bloemfontein.
Bloemfontein has got a big middle class economy, but they’re also battling.
But in spite of that, business has been fair.
Our coastal branches – Knysna, George and PE – are doing exceptionally well.
For Black Friday and the festive season, we focus more on major and small appliances and electronics and we are gearing ourselves for a good November and December.
In case you missed it!
The November issue of S&V African Leather Magazine
S&V African Leather Magazine Vol18 No11 November 2024
IN THIS ISSUE:
03 Sam Setter’s ‘Pills’
- A new quip from Sam Setter in each issue.
04 Upfront
- Rolfes Leather: New owners give it entrée to more African markets.
- Agency company changes: TST and Bosch Technical Services.
- Newald Groenewalt rejoins OPSA.
06 Forecast
- Steady at a lower level: Hide demand steady amid growing global supply, gelatine plants absorbing higher number of lower grades, writes Cape Produce Company’s Benjy Lapiner.
08 An Eclectic View
- LULUC: Explaining the link between deforestation and the leather industry, writes correspondent H. Procter.
11 Decoding Tanning Science
- A cost-effective method of reducing loose grain damage during the bating process: The ISTT’s, Dr Clive Jackson-Moss summarises a JALCA paper entitled “Preventing Enzymatic Damage to Hides by Timely Inhibition of Trypsin Activity with Soybean Flour during Bating Process”.
13 Weights & Measures
- Compiled by the ISTT.
15 Leather, Its Image & Its Place In The World
- The power of partnership…the Sustainable Leather Foundation’s Deborah Taylor announces the beginning of a new programme funded by the Leather & Hide Council of America.
16 Agriculture
- Update on FMD in SA: 4 provinces declared free from foot and mouth disease outbreaks.
Advertisers in this Issue
Asia Pacific Leather Fair (APLF)/Informa (02), Authenticae (10), International School of Tanning Technology (ISTT) (14), Mimosa (05), Rolfes Leather Division (07), S&V Calendar (01), S&V Directory (09), Southern African Footwear & Leather Export Council (SAFLEC) (11), Sustainable Leather Foundation (03), Stahl (OFC).
They Said It
"Have you considered that this is probably the Universe telling us that we shouldn’t still be trying to talk about these issues so late in the year?" - National Clothing Retail Federation executive director Michael Lawrence explaining why our phones wouldn’t connect.
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
New subscribers last week
Cuan Cones, Textile Consultant, True Alliance, Cape Town, South Africa
Ahmad Raza, Leather Technologist, Ace Leather Tanzania, Morogoro, Tanzania
Nik, Owner, She Connection, Pietermaritzburg, KZN, South Africa
Joan, Leather Technician, Stahl, Spain
Birthdays this week
25/11/1952: Elaine Botha, Velle Shoppe, Heidelberg, Gauteng, SA.
25/11/1972: Fiona Dale, AFD Industries, Pretoria, Gauteng, SA.
25/11/1977: Wayne Hockly, Sondor Industries, Cape Town, W. Cape, SA.
26/11/????: Ed Duthie, retired, formerly Bata Zimbabwe.
26/11/1953: Gerry du Toit, retired, Johannesburg, Gauteng, SA, formerly EVA Components, Durban, KZN.
26/11/1967: Preggie Govender, Dynamic Engineering, Durban, KZN, SA.
26/11/1972: Brenda Kriel, Vellie Boutique, Boksburg, Gauteng, SA.
26/11/1974: Salman Jonas, Fred Footwear, Port Elizabeth, E. Cape, SA.
27/11/1965: Gerda Rappard, retired, formerly Bolton Footwear, Great Brak River, W. Cape, SA.
27/11/1975: Dione Govender, Paragon Footwear, Pietermaritzburg, KZN, SA.
27/11/1976: Rodrick Ewing, RBE Agencies (Pty) Ltd, East London, E. Cape, SA.
27/11/1977: Paul Diedricks, agent, Cape Town, W. Cape, SA.
28/11/1940: Raphael Capelouto, retired, formerly Brazilian Sandal Co., and others, Cape Town, W. Cape, SA.
28/11/1955: Tony Ford, left the industry, formerly Naturfit, Durban, KZN, SA.
28/11/1960: Baba Sourimuthu, Robach Components, Pinetown, KZN, SA.
28/11/1987: Naeem Hajat, Fanas Outfitters, Bethlehem, Free State, SA.
29/11/1940: Mike Samuel, retired, formerly agent, Durban, KZN, SA.
29/11/1943: Nigel Ratcliffe, retired and emigrated, formerly Boehme Africa and TST Agencies.
29/11/1951: André Lubbe, retired, formerly AP Lubbe & Son, Stellenbosch, W. Cape, SA.
29/11/1965: Maria Mintoor, All Leather Shoe Manufacturers, Cape Town, W. Cape, SA.
30/11/1933: Ahmed Simjee, Hopewell, Durban, KZN, SA.
30/11/1963: Martin Paulsen, formerly NULAW, Durban, KZN, SA.
30/11/????: Nicole de Vries, Logomotif, Cape Town, W. Cape, SA.
30/11/1971: Mantsebo Motsoanakaba-Phakoana, Fashion Parlour, Ladybrand, Free State, SA.
01/12/1946: Rob Cattell, Cattell’s Industrial Footwear, Springs, Gauteng, SA.
01/12/1948: Ken Gordon, retired, formerly Turbek Trading, Hermanus, W. Cape, SA.
01/12/1950: Aboobaker Gangat, May’s Factory Shop, Port Shepstone, KZN, SA.
01/12/1959: Arthur Lewis, AGB Sourcing & Consulting, Pinetown, KZN, SA.
01/12/1966: Grant N. Munro, Freestyle Handmade Originals, Cape Town, W. Cape, SA.
In memoriam this week
29/11/2001: Harold Sack (b. 14/09/1932), Nugshoe [closed], Pinetown, KZN, SA.
30/11/2017: Dimitar Todorov (b. 08/11/1947), Afromerino Produce (now African Merino Trading) and Tannery Industries Botswana (closed).
30/11/2021: S.C. Siki Moosa (b. 15/11/1948), Shutique Wholesalers, Pretoria, Gauteng, SA.
30/11/2023: Dietmar Theilig (b. 12/05/1938), Boehme Africa (now DyStar Africa), Pietermaritzburg, KZN, SA.
01/12/1970: Dr. Konstantin Fiksl. (b. 07/05/1894), Rhodesian Bata Shoe Co Ltd, Gwelo, Rhodesia (now Zimbabwe Bata Shoe Co. Ltd, Gweru, Zimbabwe).
01/12/1998: Gian-Carlo Rosa (‘John’) Donati, Nupro Shoes [closed], Pinetown, KZN, 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
Note: For previous rates, see HERE
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
02/11/2024 |
R19.12 |
R22.77 |
R17.62 |
R2.47 |
09/11/2024 |
R18.85 |
R22.74 |
R17.58 |
R2.45 |
16/11/2024 |
R19.18 |
R22.96 |
R18.19 |
R2.51 |
23/11/2024 |
R18.87 |
R22.70 |
R18.11 |
R2.50 |
2. Botswana Pula
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
02/11/2024 |
14.50 |
17.28 |
13.37 |
1.87 |
09/11/2024 |
14.22 |
17.16 |
13.26 |
1.84 |
16/11/2024 |
14.40 |
17.24 |
13.66 |
1.88 |
23/11/2024 |
14.21 |
17.09 |
13.63 |
1.88 |
3. Malawian Kwacha (MWK) (buying)
Source: https://www.rbm.mw/
|
Euro € |
GBP £ |
US $ |
ZAR |
02/11/2024 |
1923.10 |
2280.70 |
1717.02 |
100.33 |
09/11/2024 |
1905.94 |
2293.08 |
1717.02 |
101.84 |
16/11/2024 |
1863.15 |
2240.37 |
1717.02 |
96.70 |
23/11/2024 |
1850.77 |
2221.98 |
1717.02 |
97.68 |
4. Zambian Kwacha (ZMW) (buying)
Source: https://www.boz.zm/
|
Euro € |
GBP £ |
US $ |
ZAR |
02/11/2024 |
29.14 |
34.69 |
26.78 |
1.52 |
09/11/2024 |
29.29 |
35.24 |
27.23 |
1.55 |
16/11/2024 |
29.05 |
34.79 |
27.49 |
1.51 |
23/11/2024 |
28.79 |
34.59 |
27.62 |
1.53 |
5. Zimbabwe Dollar (ZWL$) (average) / Zimbabwe Gold (ZiG)
Source: Source: https://www.rbz.co.zw/
|
Euro € |
GBP £ |
US$ |
ZAR |
02/11/2024 |
ZIG 31.18 |
ZIG 36.96 |
ZIG 28.68 |
ZIG 0.61 |
09/11/2024 |
ZIG 27.59 |
ZIG 33.18 |
ZIG 25.58 |
ZIG 0.67 |
16/11/2024 |
ZIG 26.65 |
ZIG 32.05 |
ZIG 25.28 |
ZIG 0.72 |
23/11/2024 |
ZIG 26.50 |
ZIG 31.84 |
ZIG 25.33 |
ZIG 0.71 |
Note: For previous rates, see HERE
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (21 November 2024) - The current average hide price increased by 0.03% to R2.805/kg from R2.804/kg a week ago. The current price is 0.28% higher than the average price a month ago and 14.22% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 Maximum price: R3.08. Please note: 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, and Zama Sangweni, agricultural economist, Absa group.
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:
Shop A Shoe, Velddrift, W. Cape, SA. Women’s footwear retailer.
Shope Fashion Mada, Antananarivo, Madagascar. Girls’ footwear online retailer.
THIS WEEK LAST YEAR!
LA Group acquires Boardriders brands
Black Friday
- Dodo’s: Government incompetence – where is retail outrage?
- Kingsmead: Better than expected, but consumers don’t have much to spend
Malawi: Reasons behind devaluation and what it means for importers
READ IT HERE - S&V Weekly Newsletter Vol.9 No.48, November 27 2023
THIS WEEK FIVE YEARS AGO!!
Good news last week: Tracking SA's recovery in the headlines
Retail last week: Comment from 4 retailers on Saturday
Stock Exchange News Service (SENS) releases last week
- Woolworths - trading update
SARS Customs destroys illegally imported goods valued at over R7m
READ IT HERE - S&V Weekly Newsletter Vol.5 No.48, December 2, 2019
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: Monday December 2, 2024. Ad and editorial deadline Friday 29 November.
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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