Minister calls for value addition in leather sector

Minister calls for value addition in leather sector
By Ndinawe Simpelwe
Sun 01 May 2011, 04:00 CAT

LIVESTOCK and fisheries deputy minister Albert Mulonga says the leather sector needs to embark on value addition in order to compete internationally.

Speaking during the supply and demand dissemination workshop on Friday, Mulonga said there was need to change the status quo to embark on value addition initiatives in the entire value chain for leather products.

“This requires investment into new technologies and skills to produce quality leather products,” Mulonga said.

Mulonga expressed happiness that the Common Market for Eastern and Southern Africa (COMESA) had been working hard to rebrand the leather sectors in the region in order to strengthen intra regional trade and at the same time remain competitive on the international market.

He said value addition was important because it would earn the country some revenue.

“Currently, out of the total hides and skins collected, about 80 per cent are processed into wet blue and exported from Zambia in that form. Further value addition from wet blue to crust, finished leather and leather goods should have earned the country more revenue from exports,” he said.

He said for every US $1.00 of raw hide, there was an equivalent of US $3.00 for finished leather and US $12.00 for finished leather product.

“Investment into value addition technologies and improved manpower skills are key if we are to awaken the sleeping giant,” Mulonga said.

He added that the Comesa region was facing challenges especially in the smallholder farming system where farmers did not know the economic value of hides and skins.

He said there was need to educate farmers about the value of hides and skins.
“Livestock are kept for meat, milk and drought power,” he said.

And Comesa acting secretary general Stephen Karangizi said there was need to develop intra-regional leather and leather products trade by linking SMEs to the regional markets such as South Africa, Egypt and others to identify business opportunities and possible partnerships along the value chain.

He said Comesa, with a population of 430 million people, was a wide market for regional leather products.