Tanneries

Cuba has four state-owned tanneries employing around 1,000 people which produce finished leather for the local footwear manufacturing industry as well as exporting wet-blue primarily to Italy, Spain, Türkiye, Syria and Hong Kong, which then re-exports the wet-blue to Chinese tanneries. These four tanneries are:

Operations at Bataan Tannery, the largest in Nicaragua, have been suspended for three months as well as at the Central American Tannery. According to Silvio Salinas, owner of the Central American Tannery, six major and 35 minor tanneries have been forced to suspend operations since there are hardly any raw materials to be found.

Hide values continued to rise throughout 2006 and, by December, all steer hide selections were commanding prices well over $70 per piece on an FOB basis. In the latter half of 2006, steer hide prices rose around 20% while cow hide prices went up by about 22% for the year.

This year the fair was bigger and busier than ever before. BASF, who showed for the first time, were so overwhelmed by the mass of visitors that they had to send back to their Indian headquarters for reinforcements. And, despite the expansion of the exhibition complex itself, there was still a sizeable portion of the show under canvas.

This year's LERIG meeting, which took place just before the IILF in Chennai, took Benign Environmental and Sustainable Technologies as its theme. The meeting is organised annually by the Central Leather Research Institute with a full programme of presentations.

Argentina

The last five years have seen a positive cycle in cattle ranching in Argentina. Cattle stock has increased from 50 million to 55 million and slaughter emerged from a decade long stagnation (12-13 million heads per year) to 14-15 million. This was partly due to the four million tons of corn used per year for supplementary bovine feeding.

According to Narvaez, the Colombian sector's specialities include footwear leathers, leathergoods, garment and upholstery. In terms of size and technology, as well as in finishing, the main players are Bufalo, Itagui, Americana de Curtidos, Curtipieles, Matteuchi, Curtiembres Sierra Perez, Curtiembres del Reno and Districarnazas Luna. The tanning industry is dispersed throughout Colombia with centres on the Atlantic Coast in Baranquilla and Cartagena as well as on the 'Coffee-growing Axis' - Calarca and Pereira, Antioquia, Medellín, and in the centre of the country, Bogotá. In terms of wet-blue production the major players are CI Colcueros and American Leather in Bogotá.

Increased demand for footwear based on a real rise in disposable consumer income has enabled many tanneries to lift their sales of finished leathers to the local shoe manufacturing industry. Table 1 illustrates the decline in productivity and the use of installed capacity of the tanning and footwear industries, taking 1997 as the base year.

Most observers of Zimbabwean leather and footwear industries from outside have an almost incredulous respect for companies which operate in seemingly impossible conditions, and the circumstances have never been more difficult than today. However, despite the difficulties and the dire forecasts, only a handful of companies have actually closed.

Speaking at the ninth session of the FAO Sub-Group on Hides and Skins in Tanzania earlier this year, John Koppany (CIDEC Argentina and a former president of the International Council of Tanners) gave a review of the Latin American tanning industry, graphically illustrating its position in the world as second only to Asia (principally China and India) in terms of production and especially potential.

While the US hide trade is selling hides which have not yet actually been removed from the animals, they are aware that this situation cannot last much longer. It is not just a question of getting the hides to their destination in time to meet the various customs handbook deadlines, but they must also allow for the leather to be processed and then manufactured into finished goods for re-export.

A number of medium sized tanning groups appear to be investing in Argentina at the moment. Strong exports, a weak currency and restrictions on exports of raw and semi-processed hides have all enabled positive market conditions.

This forward thinking and innovative approach also involves using the latest technology and offering progressive working conditions and adhering to health and safety standards and training.

China is now the second most important client for Mexican leather. Footwear made with Mexican leather is also being exported to Japan (thanks to a trade agreement with that country which came into force in recent years).

Procesos Humedos is a contract tannery dedicated to processing leather to the wet-blue stage. The company's client base is largely Mexican and the wet-blue produced has a range of uses including both automotive and furniture upholstery, footwear and leathergoods. Installed capacity is for 3,000 full substance hides per day.

Among the range of services available to tanners and footwear manufacturers, technicians can produce specially designed skins according to their requirements. Facilities include a prototype laboratory and a chemical analysis lab as well as a tannery pilot plant.

With exports of tanned leather, leather garments and leathergoods to the tune of US$950 million in the year to June 2005, the total production of leather has gone up to around $700 million. Muhammad Naseem Shafi, managing director of the Shafi Group, said that the export of tanned leather, according to the Department of Statistics, is $304 million for the year July 2004 to June 2005. There were also $639 million worth of leather garments, leather gloves and leather products sold overseas. This means that leather worth about $400 million has been consumed for the manufacture of these items.

Anti-dumping measures are under consideration by the European Commission in the wake of a massive inflow of Chinese made shoes after the lifting of import quotas by the EU at the beginning of 2005.