Resilience in the face of increasing problems

In Zimbabwe the formal sector hide merchants and tanners manage to survive, despite raw material shortages, sky rocketing costs and worsening hide quality. Hides go for Z$900-1,200 per kg against a more moderate Z$30 per hide approximate at Uhuru! The causes lie in dislocated source of supply, deliveries not necessarily in line with negotiated standards, and the introduction of hardly ethical business practices Hide quality has worsened considerably, with 'country' origin hides largely replacing commercially produced raw material domestically. 'Countries' now account for 90% of total supply, against about a third a decade or two back. Land redistribution has often meant the sub-division of profitable commercial farms into sub-economic lots worked by former subsistence farmers. In other instances commercial farms have been bestowed on party faithfuls with little or no knowledge of animal husbandry. The end results are much reduced production of top grade hides and a preponderance of poor quality 'countries'. Twenty years ago, nearly 90% of national slaughter and hide preservation took place at Cold Storage Commission abattoirs. Today, the bulk of output originates from rural butcheries and abattoirs, most of which lack the equipment and trained staff necessary to quality output. Hides, both on the hoof and off the hoof, have instant export value in a Zimbabwe bereft of foreign exchange. Illegal hide exports and the driving of cattle into neighbouring countries have become commonplace. To quote a tannery executive: 'Business ethics and fair competition are outdated terms. Illegality is now an acceptable road to (business) success. A not surprising development when flouting the law has become part of the governmental ethos.' Another executive said he had bought a consignment of grade 2s and 3s. Wet-blueing revealed them as 3s and 4s, but he had no recourse. 'Suppliers have the upper hand.' Rustling, he added, had 'become a way of life' in some localities. Cattle bearing Zimbabwe brands had been found in neighbouring countries. The scourge of foot and mouth was not likely to lessen; government no longer had sufficient foreign exchange to purchase needed vaccines. Veterinary Department prohibitions against cattle movements into and out of foot and mouth afflicted areas could not be enforced. 'The control mechanisms no longer exist, too often those responsible for compliance with regulations are also involved in their violation, local and foreign officials included.' The commercial herd in Zimbabwe is estimated at 150-200,000. The high point - only two decades back - ran to two or three million, but nobody really knows the bovine populations today. The Central Statistical Office no longer gets the input it should from agricultural and veterinary field operatives. But it is definite that the commercial herd has reduced and that the breeding stock has been decimated. National herd recovery, given an unlikely return to stability, could take half a century or more. The resilience of the leather sector in the difficult circumstances described has to be admired. A wit reportedly remarked: 'Our survival rate is directly related to the subterfuges managements learned in circumventing British inspired UN sanctions between 1965 and 1980.' The leather sector in Zimbabwe is faced with a loss of cohesion. Operating conditions have reached the 'survival of the fittest' stage. This is true all along the chain from primary producer through to finished article manufacturer. Farmers recently accused tannery managements of excessive export of hides in preference to supply of finished leather to domestic shoe and leathergoods plants. Analysis of applications for export permits paint a different picture. With regard to exports by individual companies, it is known that counterfeit export documents are in circulation and that cross border smuggling has increased. A truck intercepted without proper documentation resulted in a fine of Z$20 million, not very much when the black market exchange rate approaches Z$6,000 to the dollar. Applications for export permits Export Promotion Zone companies ...................................... 39.8% Abattoirs, meat suppliers, farmers ...................................... 23.3% Hide merchants ................................................................... 19.5% Tanneries ............................................................................ 14.6% Small scale processors ........................................................ 2.8%