Leather and Leather Products

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Category: Verterinary Services

Published on Wednesday, 02 November 2011 14:18

Written by Super User

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Mr.Joseph Mbogo, The Ag.Deputy Director Leather Development,Department of Veterinary Services.

Vision of the Division "to be a lead agency in steering the hides,skins and leather sector in attaining set goals in vision 2030."

Click here to view Citizen Service Charter for Leather and Leather Products Division.

• Hides,Skins,Extension and Training.
• Leather Development.
• Environmental Protection and Management.
• Regulation and Value Addition.
• Market Development and Information.

The hides, skins and leather industry is one of the key agricultural sub-sectors with a high potential towards commodity development that addresses pertinent issues of socio economic importance and positively impacts on rural development, creation of wealth and employment. The contribution of the sub sector towards achieving economic growth through an expansion of the export market for both semi-processed and finished leather goods is immense and the only way to such success is through embracing the value addition initiatives. This is the direction that the Ministry has adopted and strongly pursues to meet the industry’s demand.

The industry therefore depends largely on the locally available large livestock resource b ase where the ASAL’s (Arid and Semi Arid Lands) covering 70% of the country continues to be a major contributor of slaughter stock where hides and skins are the by products. Hides, skins and leather industry contribute about an estimated 4% to agricultural GDP. In the recent past the country produced an average of 2.4million hides, 6 million skins and 20,000 Camel hides.

In the local market the dealers were estimated to earn about Kshs.1.8billion annually , while in the export scene the country earns approximately Kshs. 4 billion from the exports of hides, skins, Leather, Leather goods and Footwear. However the optimal growth of the industry is purely dependent on value addition. The Government is committed to this cause, as value addition will strongly drive the sub-sector towards set goals in the recently launched vision 2030 as a mega initiative to industrialization. The earlier bl ue prints which include the ERS: Economic Recovery Strategy and SRA: Strategy for Revitalizing Agriculture have both identified hides, skins and leather as very important commodities which need to be value added to contribute towards economic growth. These two documents target the economic growth of the country while creating employment and wealth to the people thus alleviating poverty.

Presently the rise of the tanneries from 9 to 11 tanneries with two more under urgent revamping is a sign that the Industry is posed for growth. This has further been demonstrated in the recent economic survey of 2008 that showed a 10.3% growth in the leather sector. The government policy of value addition locally, has greatly taken root since the taxation on export of raw hides and skins was raised to 40% during last years budget. At large exports indicate that 100% skins are processed to wet-blue and finished leather prior to export while 96% of the hides are processed to wet-blue leaving only 4% of the total production which find way out of this country for export in raw form.

Handling of raw hides and skins involves both ante and post slaughter operations whic h need specialized skills in animal husbandry, slaughtering and curing technologies. The final quality is dependent on the entire production chain. Ticks due to the weak tick control measures cause 40% of the defects on the hides and skins, 60% of the defects are caused during slaughtering process while 25% of the raw material does not enter the commercial chains. Structures need to be put in place to salvage the hides and skins that do not enter the marketing chain which can only be done through proper tick control and increase in the linkages with private partners to participate in the recovery of the 25%

.Field inspection services on routine advice on hides and skins handling techniques.
It is however important that the vision 2030 has set targets that leather sub-sector needs urgently to implore upon for a functional paradigm shift in order to cater for the industry’s expectations which entail production of high quality material availing the same in a form that value addition becomes viable and sustainable. An organization with a vast scope of operationalization and lesser bureaucratic load is therefore anticipated. Such an organization to be known as the Leather Development Council is proposed to steer the sub-sector to vision 2030. This will provide specialized networking linkages with other organizations both locally and internationally to ensure adequate marketing channels, technology transfer and capacity building. Such organizations have successfully worked in South Africa, China and India just to mention but a few. The membership composition of the organization of private/public participation of important stakeholders will help the sub-sector achieve its targets.

It is worthy noting that the tanning industry thrived well during early the 1990’s when the government encouraged the industry through 22% export compensation scheme which was later abused and abolished. During the post liberalization period, the tanneries with fairly new machinery were characterized by low operational capacity of 30% and others closing down hence opening avenues for export of raw hides and skins. The governments’ initiatives of value addition which led to the imposition of 40% tax has changed the scenario and currently 11 tanneries are currently operating at 70% - 100% capacity utilization. Indian, Chinese and Italian entrepreneurs have shown interest in the Sub-sector. There has been a general improved leather sector performance in the year 2007 during which period the operating tanneries increased to 11 with 2 being revamped and coincidentally there was an increase on export tax of raw hides and skins which availed more material in the country for processing. The public service has not adequately addressed and complimented the service to meet the Sub-sectors demands, reasons being, poor staffing and progression policy, low budgetary levels, poor cross sectoral linkages and support.

It is proposed that a Leather Development Council be formed and mandated in driving the sector and fast tracking the much needed value addition initiatives and professional market approach aimed at economic growth and alleviation of poverty while creating employment. The performance of the industry and as noted earlier with exploitation our leather industry is worth more than 10 billion.

This sector has a lot of potential for growth considering the Kenyan population requiring 20 million pairs of shoes annually. Taking the least cost of a pair of shoes at 350.00 the value of this sector therefore is worth 7 billion if the Kenyans can adopt to ‘buy Kenyan build Kenya’ patriotism to their Country.

The leather sub-sector in Kenya was established primarily with the aim of being export oriented, since Kenya cannot consume all the leather produced locally. However for the industry to succeed in the export market, it must be competitive. This has not been the case since local footwear and leather goods manufacturers have been unable to withstand competition from subsidized imports. The manufacture of leather goods and footwear is the optimal level in the leather Sub-sector and this is where the country can attain a competitive edge in the economy.

Subsequently in an effort to address some of the Millennium development goals (MDG’s) the cottage industry related to the leather subsector is the most viable focal point. Once established the impact of such a venture is conspicuous on the creation of wealth and rural development especially of the Arid and Semi Arid Lands (ASAL). To adequately sustain these objectives the Permanent Secretary Min. of Livestock Dev. has rebranded the Hides, Skins and Leather development division to be named as the Leather and Leather goods division to focus on accelerated value addition initiatives geared towards implementing and attaining the set objectives of Vision 2030AD.

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