TC Jul-Aug 2022 Issue

TRADE CHRONICLE Jul - Aug - 2022
Lumpy skin disease, other challenges
cast a shadow on tanneries
Amanullah Aftab
Chairman PTA
The spread
of lumpy skin
disease (LSD)
and other
challenges
including
high cost of
business have
cast shadow on
the otherwise
flourishing
t a n n e r y
business in
Pakistan.
The exports of leather goods that
were projected to touch the mark of
$1 billion, might hover around $950
million in 2021-22 due to supply
crunch and price volatility of raw skins
and hides over LSD and high cost of
manufacturing.
Consequently, the lost glory of leather
trade might be restored albeit at a
slower pace, said stakeholders of
tannery and leather businesses, while
sharing an optimistic view of the
sector.
After lifting of Covid-related
restrictions, businesses have started
showing progress. Leather sector
exports grew by 17 percent in financial
year 2021-22 compared to the last year.
With challenges of LSD and high cost
of business, the exports would now
likely remain between $950 million to
$1 billion, observed Amanullah Aftab,
ACLE2022 to be
Rescheduled
Due to the recently uncertainty and
the public health control situation in
Shanghai, Anhui and other provinces
is once again severe and complicated
in China.
The organisers of the All China
Leather Exhibition (ACLE) have
announced that ACLE 2022, originally
scheduled to be held at the Shanghai
New International Expo Centre from
31 August to 2 September, will be
rescheduled to 20 - 22 December 2022
Chairman,
Tanners
(PTA).
Pakistan
Association
He was of the view that lumpy skin
disease spreads rapidly mainly in cow,
which makes meat and skins of affected
animals unusable. He emphasised that
the raw hide of animals affected by
LSD were totally unusable.
This definitely created negative impact
on supply side directly or indirectly.
On the eve of qurbani or ritual of
scarifying animals, he added, our hope
of having an ideal season of sourcing
skins and hides in big quantities has
dampened to some extent. “Eidul Azha
is the big occasion for tanning industry
because we cover the raw hides and
skins demand of around 4/5 months
from animals slaughtered at qurbani,”
he said.
Regarding price trend, he added, “this
year we expect almost doubling of raw
skin price”. Last year, the price of cow
hide was Rs700 to Rs1,000 and goat
skin stood at Rs150 to Rs180.
at the same venue.
The organiser said: "The entire
ACLE team would like to thank all
exhibitors, buyers and partners
for their support of the All China
Leather Exhibition over the years,
as well as their understanding and
cooperation for the postponement
of the exhibition.
We will continue to monitor
the development of the situation
closely and maintain frequent
communications with relevant
authorities".
However, this year the price of cow hide
would be around Rs1,600 to Rs2,200
and goat skin at around Rs250 to Rs350.
Therefore, the cost of manufacturing
on this count would be almost double
than last year.
Agha Saiddain, former Chairman, PTA
also anticipated an adverse impact
of LSD on the quality and quantity of
skins this year. “There may be a drop
in prices of cows for sacrificing on Eid
and disease affected skins definitely
will have no value,” he said.
On prices, he expected a jump on
cow hides, from Rs1,200 to Rs1,800.
Similarly, goat skins would likely be
sold at an average price of Rs220 this
year against last year’s price of Rs160.
Prof Dr Talat Pasha also echoed
concerns about the deterioration of
quality as well as quantity of raw cow
skin to some extent due to LSD. He
stressed the need to ensure blanket
cover of immunisation to animals
against LSD as soon as possible with a
view to curtailing its spread.
To a question, he said, affected animal
taking fodder, simply means loss in
milk and meat production.
The export of leather and leather
products from Pakistan increased by
8.86 percent from $765.355 million to
$833.199 million during fiscal 2020-21
over the preceding year. The outgoing
year might likely see growth in leather
exports as per stakeholders.
Courtesy - The News
We aim to have a smooth arrangement
for ACLE 2022 and look forward to
organising a successful event for
exhibitors, buyers and stakeholders of
the leather industry.
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