The import of semi processed leather will reduce the production process for local tanneries and minimise the environmental impact of the processing according to sources at the institute.
It is expected that the import of semi processed leather will begin by the end of the third quarter of the Ethiopian fiscal year.
The leather institute has selected Sudan and Central African nations to supply the leather after some research into importers said the sources. Yemen could also potentially be a supplier but the unstable situation in the country makes imports unlikely at this time noted the sources.
The import of leather will be handled by a share company formed through the Ethiopian Leather Industries Association (ELIA) although individual tanneries can also arrange to conduct imports on their own.
Crust imports will be priority according to the new scheme with wet-blue and pickle as other alternatives.
It is to be remembered that the shortage in hide and skin and has resulted on a government suspension of new tanneries entering the leather sector in Ethiopia. There are currently 25 tanneries in operation in the country with most of the production being dominated by a few international companies.
The primary reason for shortages has been understood to be the absence of a market chain. The Ethiopian government and ELIA are studying the viability of a production chain to solve shortage problems caused by competition.
Source: Capital