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Earnings form leather exports fall short of target

26 Aug '11
2 min read

The export earnings of the Ethiopian leather industry for the fiscal 2010-11 rose above US$ 104.1 million, but it still fell short of its projected target of US$ 180.4 million, the Ethiopian Leather Industry Development Institute (LIDI) has stated.

The earnings flowed from exports of leather items to various American, Asian, European and African nations by 43 leather and leather good factories of the country. These included six leather firms, 15 leather footwear enterprises and 22 tanneries.

As revealed by LIDI, five leather firms, namely Ethio Leather Industry, Ethiopia Leather Factory, Dire Leather Industries, Mojo Leather Factory and Kolba Leather Factory each fetched US$ 9.6 million, US$ 16.6 million, US$ 9.2 million, US$ 6.1 million and US$ 11.3 million, respectively to country's exchequer. The five enterprises thus jointly contributed US$ 49.9 million to overall export earnings of the leather industry of the country.

Further, while the 22 tanneries fetched US$ 95.3 million in export revenues to the country's exchequer, finished and crust leather brought in US$ 24.9 million and US$ 70.1 million respectively.

Three of the 15 footwear firms brought in US$ 5.9 million, which accounted for 66.3 percent of the total export earnings of the leather footwear firms. The three firms – Tikur Abay Shoe Factory, Ara Shoe Factory and Anbessa Shoe Factory each brought in US$ 1.3 million, US$ 2.5 million and US$ 2.2 million, respectively.

Ethiopian leather industry intended to earn US$ 59.5 million from exports of leather footwear enterprises, but was able to collect revenue of just US$ 8.8 million.

According to the leather footwear enterprises, the country fell short in achieving its export earnings target mainly due to inadequate material supply, particularly supply of pure leather from tanneries. Also, majority of the tanneries are capable of producing only crusted leather and not finished leather.

The country aims to export standardized and finished skin and leather products worth US$ 206 million during the 2011-12 fiscal.

LIDI was first instituted in July 1999 to serve as a technology institute intended for undertaking research and provide training to industry operators. It was again re-instituted in May 2010 to provide consultancy support and capacity building services to the production arm of Ethiopia's leather industry.

Fibre2fashion News Desk - India

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