Triplebottom Hides and Skins Quality Requirements.2

STUDY 1: MARKET REQUIREMENTS FOR IMPORTERS OF
AFRICAN HIDES AND SKINS
The Hides, Skins and Leather Sector in Africa

Essential Actions to Meet Quality Requirements of Importers
REVISED DRAFT REPORT
Triple Line Consulting Ltd

London
September 2002
A revised draft report prepared by Triple Line Consulting Ltd (on behalf of the
Common Fund for Commodities) for submission to a Workshop in Tunis in
October 2002.
Corporate Contract Number CFC/02/12

Revised Draft Final Report, Study of Market Requirements for Importers of African Hides and
Skins
Contents
1. SUMMARY............................................................................................................... 4
2. BACKGROUND TO THE REVISED DRAFT REPORT..................................... 8
2.1. Objectives .......................................................................................................... 8
2.2. Scope.................................................................................................................. 8
2.3. Methodology ..................................................................................................... 8
2.4. Format................................................................................................................ 9
2.5. Constraints......................................................................................................... 9
3. HIDES AND SKINS............................................................................................... 11
3.1. Definitions ....................................................................................................... 11
3.2. Characteristics ................................................................................................. 11
3.3. Applications..................................................................................................... 12
4. RESOURCES AND TRADE ................................................................................. 15
4.1. Hides and Skins Production ........................................................................... 15
4.2. Hides and Skins Trade .................................................................................... 16
4.3. Value of the Hides and Skins Trade .............................................................. 17
5. CONSTRAINTS TO PRODUCTION AND TRADE .......................................... 18
5.1. Quantity of Raw Materials Production .......................................................... 18
5.2. Quality of Hides and Skins Supplies ............................................................. 18
5.3. Defects ............................................................................................................. 19
5.4. Semi-Processed Materials and Leathers ........................................................ 20
5.5. Packaging, Transportation and Delivery ....................................................... 20
5.6. Pricing.............................................................................................................. 21
5.7. Ethical Investment........................................................................................... 21
5.8. Environmental Issues...................................................................................... 23
6. PROSPECTS FOR PRODUCTION AND TRADE ............................................. 24
6.1. Projections of Livestock Resources; and the Supply of Hides and Skins ... 24
6.2. Hides and Skins as Commodities................................................................... 24
6.3. Risk .................................................................................................................. 25
7. RECOMMENDATONS ......................................................................................... 27
Appendix 1. Terms of Reference for Study 1 ................................................................ 31
Appendix 2. Bibliography............................................................................................... 33
Appendix 3. Organisations Contacted............................................................................ 34
Appendix 4. Activities of Selected Organisations......................................................... 42
Appendix 5. Glossary ...................................................................................................... 44
Appendix 6. Sources and Features of Hides and Skins................................................. 45
Appendix 7. Tanning, Leather and Leather Products Manufacture ............................. 47
Appendix 8. Abbreviations and Acronyms.................................................................... 50
Appendix 9. Africa’s Resources of Livestock, and Trade in Leather Products........... 51
Appendix 10. Customs Classifications; World Customs Organisation........................ 58
Appendix 11. Marketing ................................................................................................. 61
Appendix 12. Identification and Control of Defects Among Skins in Ethiopia .......... 67
Appendix 13. Classification of Some Defects; and Options for their Control ............ 72
Appendix 14. ISO Publications for Hides, Skins, Leathers and Leather Products...... 76
List of Tables
Table 1. Production and Trade of Hides and Skins in Africa ....................................... 16
Triple Line Consulting Ltd 2

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Table 2. Mean Value of Hides and Skins Exported from Africa.................................. 17

Table 3. Livestock Resources and Hides and Skins Production................................... 18
Table 4. Price Differentials Based on Preservation....................................................... 21
Table 5. Summary of Unethical Activities and Products.............................................. 22
Table 6. People Involved in Causing and Resolving Defects on Hides and Skins...... 27
Table 7. Summary of Actions Required to Improve Domestic Marketing and External
Trade of Raw Hides and Skins ............................................................................... 29
Table 8. Livestock Resources of Africa in 1999 ........................................................... 53
Table 9. African Countries with Significant Livestock Resources. ............................. 54
Table 10. Hides and Skins Production of Africa in 1999.............................................. 55
Table 11. Production and Trade of Heavy Leather from Africa................................... 56
Table 12. Production and Trade of Light Leather from Africa..................................... 56
Table 13. Production and Trade of Leather Shoes in Africa......................................... 57
Table 14. Defects of Hides and Skins. ........................................................................... 64
Table 15. Raw Material Quality and Leather Quality. .................................................. 65
Table 16. Quality of Leathers From Salted and Dried Hides. ...................................... 66
Table 17. Results of Examinations of Experimentally-Treated Skins in Ethiopia...... 69
List of Figures
Figure 1. Transverse Section of a Typical Hide or Skin (FAO, 1995)......................... 11

Figure 2. Schema of the Tanning Process...................................................................... 48

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1. SUMMARY
There is a widespread belief that in Africa, in particular, avoidable losses detract from
the chain of added value as hides and skins progress ‘from the farm, to the foot’.
Attempts to introduce improvements have been undertaken in many countries but, in
the absence of reliable statistics for monitoring and control purposes, doubts about the
course of any changes remain. Certainly, the quality of some of the semi-processed
materials, finished leathers, leathergoods and shoes made from African hides and
skins – and the raw materials themselves – are widely perceived as inferior, and are
disadvantaged in foreign trade. But, different people’s understanding and definition of
‘quality’ is often inconsistent, and sometimes based more on the personal, subjective
preferences and prejudices of their own perspective, rather than objective criteria of a
material’s performance.
This report was prepared to ‘assist African countries to identify actions to meet the
quality requirements of importers in order to improve domestic marketing and
external trade of raw hides and skins’. To do this, African countries need to know
what importers’ requirements are. Thereafter, African countries need to adapt their
domestic marketing appropriately - to satisfy these requirements. Once customers’
requirements are being satisfied properly, improvements to external trade are almost
inevitable. This revised draft report aims to provide the information required to
determine generic strategies for the maintenance (and increase) of market share, and
market penetration for African hides and skins.
Hides and skins – by-products of the livestock sector – are primarily the raw material
for the tanning industry; where they provide leather for the manufacture of
miscellaneous leather products, but especially shoes. Although any hide or skin can be
processed into leather (and leather products) various breeds of domestic cattle, sheep
and goats provide the overwhelming majority of raw materials. During the course of
conventional (chrome) tanning, processes may be interrupted to provide intermediate
materials such as pickled skins and wet blue leathers. All of these semi-processed
materials, as well as raw materials and finished leathers (and leather products) may be
traded internationally.
Only the middle ‘dermal’ layer of hides and skins - free of the overlying epidermis
and hypodermis – is used ultimately to make leather. The dermis is made resistant to
putrefaction, and finished (in term of thickness, feel and colour) to provide material
suitable for the manufacture of shoes and other leather products. When the thin,
uppermost ‘grain’ layer of the dermis has been damaged, extra processing may be
required to correct or camouflage any defects that are present. Historically, all these
procedures would have been completed in or around a few sites in a country. Now,
many of the procedures are increasingly concentrated at different ‘global’ locations;
providing scope for increased technical specialisation and economic efficiency.
The innumerable breeds of cattle, sheep and goats provide a variety of hides and skins
with different properties, that are compounded by the circumstances under which
animals are raised, and the ways in which the hides and skins are produced. Certain
types of hides and skins may be sought after for particular leather-making purposes –

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because of their general physical characteristics, or grain pattern in particular - but all
need to satisfy basic common marketing requirements for use in the leather trade.
The principal livestock resources of Africa in 1999 consisted of 231 million cattle,
241 million sheep and 209 million goats. This amounts to 15% of the world resources
of cattle, and 25% of the world’s sheep and goats. Although these were quite widely
dispersed throughout all 56 countries of Africa, concentrations occurred in three
major areas of:- West Africa, Eastern and Southern Africa and North Africa. In
particular, around two thirds of all animals were confined to a handful of countries,
with Kenya and Tanzania being prominent for their cattle, Algeria, Morocco and
Somalia for their sheep and/or goats, and Ethiopia, Nigeria, South Africa and Sudan
exhibiting considerable resources of both large and small livestock.
Although the output from livestock slaughtering in Africa has improved, to provide as
many as 27 million hides and 151 million skins in 1999, these figures were equivalent
to 8% and 16% of global production; and below what might be possible. For example,
if off-take rates throughout Africa were the same as the average of developing
countries in particular, or the world in general, another 11 to 22 million hides and 69
million skins would be available to the tanning industry. If the hides from Africa were
also the same size (weight) as those produced throughout the world, the extra
2.6kg/piece would be equivalent to an extra 17% more hides (4.5 million pieces) of
the existing size.
Nearly two thirds of all hides and skins currently produced in Africa are accounted for
by the nine countries noted for their resources of livestock. But, larger than expected
quantities of hides and skins were produced in Egypt (because of importations and
slaughtering of animals) and noticeable quantities of skins were also produced by
Algeria, Burkina Faso, Libya and Tunisia.
Imports of raw materials only occur in about 18 African countries and remain below
4.0% of total domestic production, although imported hides are significant in
Zimbabwe, sheep skins in Tunisia, and both are significant in South Africa. Exports
of cattle hides continued from many more countries in Africa in 1999 but the volume
had declined to 4 million pieces (less than 15% of domestic production) and was most
significant in the case of South Africa. Exports of sheep and goat skins were also
subject to decline, although the volumes were still considerable (at 23 and 8 million
pieces respectively) and were particularly significant to Ethiopia, Libya, South Africa
and Sudan (in the case of sheep skins) and to Ethiopia in the case of goats.
Overall, exports of hides and skins from African countries amount to 3% and 11%
respectively of all (global) exports, considerably below the expectations based on
livestock numbers, and hides and skins production. The prices received for exported
hides and skins vary. Prices received for goatskins from Africa have improved
substantially and are now close to international averages. Prices for sheep skins have
avoided the slump in prices for sheep skins generally and now command a premium,
due mainly to the reputation of Africa’s hair sheep breeds. Prices for African hides
have remained unchanged at US$3.13/piece and below international averages of
US$5.16/piece – due partly to their smaller size, and to concerns over quality.

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All the sixteen countries mentioned previously with respect to livestock resources and
the production and trade of hides and skins also have tanning facilities, as do a further
14 countries of Africa. The production of heavy leathers from cattle hides in Africa is
about 4% of world total, as is the manufacture of light leathers from hides. 86% of
heavy leather production in Africa is chiefly restricted to only four countries (Egypt,
Morocco, South Africa and Sudan. Light leather production is more widely dispersed
with 11 countries accounting for 83% of production in Africa.
Based on Africa’s production of hides (8% of world total) it would be expected to

produce more that 4% of the world’s leather. After allowing for production of some
proportion of heavy leathers, and the balance of imports and exports, the remaining
shortfall is attributed to the smaller size of African hides that (per piece) provide a
smaller area of leather than larger hides typical of much of the rest of the world. Other
losses can be attributed to cutting yields (to remove defects) and reduced yield of
splits from thinner, lighter weight African hides.
Physical losses in quantity, are exacerbated by losses in value. For example, exclusive
of South Africa, the value of exports of light leathers made from African hides and
skins is only US$0.66ft 2 in contrast to the US$1.07ft 2 for ‘global’ exports. Similarly,
the value of exports of light leathers made from African sheep and goat skins is only
US$1.19ft 2 instead of US$1.37ft 2 global exports. These losses, of US$0.41ft 2 and
US$0.18ft 2 respectively, are wholly attributable to quality and, if applied to the whole
of Africa’s production of leather, would amount to US$257 million a year.
Africa’s production of shoes, the principal outlet for leather, has remained almost
unchanged at its present level of 172 million pairs a year, but this represents a decline
to only 4% of world production. Although a substantial proportion of shoes are
exported most of the trade is intra-continental because of the production costs that
make the shoes uncompetitive in other markets.
Although they are by-products, hides and skins are, in many ways, treated and traded
as commodities. But, unlike commodities generally, the quality of hides and skins is
not easily defined and determined. As hides and skins are processed into leather and
leather products, the quality is easier to determine and the results may conflict with
grading of the raw material. Then, some of the perceptions and prejudices attributed
to raw hides and skins from Africa must be revised. For example, air-dried hides from
Africa are not necessarily inferior to the same material that has been preserved by
salting; but of course badly dried hides are as bad as badly salted hides. Implicit in the
progression from the mere, reactive trading of hides and skins, to the proactive
marketing of leather and leather products, is a thorough understanding of the
constraints to improvements in production, processing, and so on, in order to meet
consumers’ requirements.
For most tanners, as for most manufacturers generally, quality is always a primary
concern. The same subject inevitably preoccupies the existing importers of African
hides and skins, who supply tanners. Similarly, concerns about quality deter many
potential importers of materials from Africa. Many of these concerns are justified and
long-standing. Although there are some misunderstandings among the various parties

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involved in hides and skins production and processing - about what constitutes quality
- the predominance of defects is widely accepted as the most significant problem.
The defects of hides and skins, that go on to affect leathers and leather products, differ
in ‘when’ and ‘where’ they are caused. For most defects there are simple and cost
effective procedures that could be adopted to eliminate or control them.

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2. BACKGROUND TO THE REVISED DRAFT REPORT
2.1. Objectives
This revised draft report is one of a series prepared for the Common Fund for
Commodities – and in support of the Food and Agriculture Organisation of the United
Nations – for presentation to a workshop in Tunisia in October 2002. The main
objective of the Workshop (Appendix 1) is to:
assist African countries to identify actions to meet the quality requirements of

importers in order to improve domestic marketing and external trade of raw
hides and skins.
This revised draft report, in particular, describes the results of a study to:
establish market requirements and preconditions for African hides and skins
from an importer’s perspective.
This revised draft report provides the basis for some of the discussions at the Tunis
Workshop; and recommendations derived from the Workshop will be incorporated
into a revised (Final) Report.
2.2. Scope
This revised draft report describes the results of a study of the market from the
perspective of an importer of African hides and skins, with emphasis on elements
such as uniformity of raw products, delivery schedules, and so on. It describes the
major problems exporters of African hides and skins would need to overcome in order
to ensure continued growth in the trade. The revised draft report also identifies the
requirements of importers with respect to trade regulations, standards, marketing
arrangements, and other measures affecting imports.
Although the subject matter of this revised draft report is essentially the hides (and
skins) of domesticated livestock (cattle, sheep and goats) from Africa, it also includes
reference to semi-processed materials made from hides and skins (pickled stock, wet
blue leathers and crust leathers) as well as:- semi-finished leathers, finished leathers
and leathergoods (including shoes and garments).
2.3. Methodology
This revised draft report was prepared after examination of secondary sources of
information (Appendix 2) complemented by consultations with representatives of
some national and international institutions associated with various aspects of the
tanning business. The latter (Appendix 3) also included commercial organisations
involved in various aspects of the trade in hides, skins and leathers. The activities of
some of these national and international institutions are summarised in Appendix 4.
During the collection of primary data (information and advice), semi-structured

interviews were conducted with key informants - representatives of the various

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organisations concerned. The responses elicited during the course of these interviews
(face-to-face, over the phone, and by email) were subjected to an informal content
analysis, and the results perceived there, are reproduced throughout this revised draft
report. Although traders currently engaged in the use of raw materials, leather and
leather products from Africa, received priority during the course of this survey, those
not currently engaged in the business (but who might in the future) were not ignored.
During the course of a visit to the FAO the author was provided with access to records
of some of the hides and skins improvement projects supported previously by the
organisation. These records provided an invaluable source of information and were
the basis for some of the case studies presented here.
2.4. Format
This revised draft report is comprised of two more-or-less distinct parts - preceded by
a summary and background section. The first part of the revised draft report consists
of two sections describing:- hides and skins (their general features and those of their
derivatives) and Africa’s resources, production and trade in hides, skins and their
derivatives. The second part of the revised draft report consists of three sections;
devoted to:- constraints to production and trade, opportunities for production and
trade, and recommendations.
Attached to this revised draft report is a set of fourteen appendices which contain
more of the detail summarised in the main body of this revised draft report.
2.5. Constraints
A long-standing problem with trade statistics on hides, skins and leathers, has been
the vagaries of the classification systems in use. This should be relieved by the
widespread adoption in 2002 of more specific classifications, introduced by the World
Customs Organisation.
Most of the people contacted during the course of this study were very keen to
cooperate in the provision of information and advice. On some occasions, data was
withheld on the basis of commercial sensitivity but this is not considered likely to
affect the general conclusions of the revised draft report.
This revised draft report is designed to be used in conjunction with the draft report
derived from an accompanying study: ‘Study No. 2, Recommendations on Actions
Needed to Improve Exports of Hides and Skins, Semi-processed and Processed
Leather from African Producing Countries’. When the draft reports are considered
together, the opportunities and threats of the export market/s should, when compared
with the strengths and weaknesses of the traders in Africa, provide scope for
identifying appropriate strategies to enhance trade in the future. One major proviso is
that circumstances (within markets and among producers) change with the passage of
time, so business strategies are likely to have to change as well.
Although the production and trading of hides, skins and leathers are old and well-
established activities, marketing (as a philosophy and business function) is widely

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misunderstood and misused in many sectors of economic activity. This is in spite of

recent trends in the liberalisation of international trade - and the introduction of
‘market’ economies in many countries. The study described in this revised draft
report, is arguably the first, large-scale attempt, to introduce marketing concepts to
project work in the trade of hides, skins and their derivatives, from Africa. The results
described here are designed to contribute to a strategic marketing plan for Africa, and
the African hides and skins, and leather trades in particular.

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3. HIDES AND SKINS
3.1. Definitions
Hides and skins are the external integuments of animals; and include materials
derived from birds, fish, amphibians, reptiles and mammals. Traditionally, most hides
(from large animals) and skins (from small animals, Appendix 5) have been derived
from mammals in general, and from a relatively small number of domesticated
species in particular. However, materials derived from wild animals (and generally
referred to as game skins) may also be significant, particularly in Africa where the
ranching and farming of species of antelope, crocodile, ostrich and even some fish, is
increasingly important. But, internationally, most hides are derived from cattle
(buffalo in Asia), and most skins from sheep and goats (and to a lesser extent calves).
Although there are livestock resources of pigs, horses and donkeys in Africa, they are
relatively small in number, and will not be considered in the rest of this revised draft
report.
3.2. Characteristics
Although hides and skins exhibit considerable variation in size and form (Appendix
6), they all consist of three more-or-less distinct layers:- epidermis, dermis and
hypodermis (Figure 1). The external, cellular epidermis, accounts for an almost
insignificant thickness of the whole hide or skin. But, the epidermis may be very
prominent because of the sometimes heavy pelage (the outgrowth of hair, fur or wool)
that it generates. The internal (carcase side) layer of hides and skins – the hypodermis
– consists of subcutaneous muscle and fat, and varies in distribution and thickness;
according to many factors. In between the two outer layers of a typical hide or skin is
the dermis – a fibrous network of collagen protein that is the basis of the tanning
process, leather, and the manufacture of leather products.
Epidermis
Dermis -
Papillary
layer
Dermis –
Reticular
layer
Hypodermis
Figure 1. Transverse Section of a Typical Hide or Skin (FAO, 1995).

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The most prominent features of fresh hides and skins (from cattle, and sheep/goats
respectively) are their size, pelage, and colour. All these are more-or-less closely
related to the breed of the animal. The size (weight) of a hide or skin is closely related
to the weight of the animal from which it came, and is typically between 7 and 11% of
the live weight. Accordingly, the hide of a 1,000kg bull may as much as 110kg while
the skin of small (25kg) sheep or goat may be as little as 1.8kg (less in the case of a
lamb or kid skin). This variation in size has innumerable implications during the
course of tanning and will be referred to later.
3.3. Applications
From time immemorial, hides and skins have provided humankind with a raw
material for the manufacture of a range of useful articles such as garments, footwear,
bags, and cases. For many centuries, the techniques used to convert a putrescible
(hides and skins) material into a durable article were based on small-scale, traditional,
artisanal (tanning) procedures. In the nineteenth century, scientific and technical
developments provided scope for the introduction of large-scale commercial
procedures; these now form the basis of most of today’s leather-making technology
(Appendix 7).
One of the advantages of modern tanning techniques is that processing can be

interrupted at various stages and the incompletely tanned (semi-processed) materials
themselves may be traded nationally and internationally; just like the raw material.
Trading in semi-processed materials offers scope for specialisation in production, and
may be used, for example, to confine the heavy pollution associated with the
preliminary (beamhouse) operations. The most commonly-available semi-processed
materials include pickled hides and skins, wet blue (chrome tanned) and crust leather,
as well as tanned (but unfinished) leathers.
Of all the leather estimated to have been produced from cattle hides in the year 1999,
about 52% was light leather for shoes, 39% was light leather for garments (and other
leather products) and the remaining 9% was heavy leather for shoe soles and so on. In
all but a small proportion of special (hair/fur/wool-on) leathers, the epidermis and
hypodermis are always removed during the course of the leather-making process.
Accordingly, it is the dermis alone that is the essential raw material for the tanning
industry.
3.4. Constraints to Leather Production and Processing
Although the leather-making process can be completed over the course of a few days,
and on one particular site, many of the various stages involved in leather-making
provide scope for interrupting procedures. Historically, these stages were used to re-
sort materials to provide for more consistent processing. Now, they provide semi-
processed materials that can be traded between companies (and countries). Most of
the raw materials, semi-processed and finished products, shown in Appendix 7
(except fresh hides and skins, rehydrated hides and skins, and limed materials) can be
stored and transported pending subsequent treatment.

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Although in principle, any type of hide or skin (and hence any type of leather) may be
used to make any type of shoe (garment or leather goods), market requirements
(including considerations of aesthetics, functionality and cost) mean that some types
of materials are more appropriate for certain purposes. For example, there is little
point in using full-sized, attractive and expensive, finished leathers, to make linings
for inside shoes where they will not be seen. In this particular case, off-cuts of un-
finished materials would be perfectly adequate. Conversely, premium-priced high-
fashion garments may require the laborious and expensive selection of half-a-dozen
matching leathers (from among hundreds of similar-looking pieces) to make one
whole jacket.
Many of the features characteristic of raw hides and skins, remain obvious (initially at
least) in semi-processed and finished leathers. Indeed, such is the versatility of the
tanning and finishing process that some features may be deliberately enhanced and
others attenuated. For example, the prominent upper (grain) surface of goat skin, may
be exaggerated to make it more prominent and more obvious. Similarly, the extreme
thickness of heavy hides (too thick for most practical purposes) may be reduced by
splitting (repeatedly, if necessary); to provide one ‘grain’ layer, and one or more
‘suede’ or ‘flesh’ splits.
Although the specific purpose of tanning is to make the original raw hide or skin
resistant to putrefaction, innumerable other auxiliary procedures are associated with
tanning and finishing. Most of these are designed to modify and improve the
functionality of the leather, in terms of firmness, feel, drape, stretch, and lasting
characteristics. Given the considerable variation that exists even with a group of hides
or skins from the same source, and the topographical and striatigraphic variations
across and through a particular hide or skin, such remediation processes can be quite
ambitious and expensive - in terms of time, effort and materials.
Central to successful tanning and finishing is balancing the cost of inputs to providing
finished leather and leather goods, to the financial returns provided upon sale.
Relatively less expense is involved when all the hides or skins being processed are
homogenous with respect to type, weight, thickness and so on. Relatively more
expense is involved when a complex mixture of hides or skins are being processed, or
the hides and skins exhibit a lot of miscellaneous defects.
Remediation of ‘natural’ irregularities in hides and skins during the course of tanning
and finishing is virtually unavoidable. But, the prospect of similar work on ‘unnatural’
or ‘man-made’ defects encourages tanners to be very careful in their selection of raw
material. When such defects cannot be avoided, they would (if left untreated) detract
from the appearance and value of the finished leather and leathergoods. The removal,
reduction or obscuring of such defects is euphemistically referred to a ‘correction’ and
more specifically grain correction.
Although a leather of any sort exhibits a variety of properties – including strength,

wear and tear resistance, insulation, permeability and so on – often the most important
characteristics is the aesthetic appeal of the leather’s appearance. And that part of the
leather most obvious to consumers is the grain, the uppermost part of what was the
dermis. The grain layer of leather is only a few micrometres (millionths of a metre,

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Appendix 8) thick and very fragile, but to many consumers it is the most important
characteristic feature of leather. It is what meets the eye when looking at a new pairs
of shoes for example, and it is the grain that provides an attractive and comfortable
sensation when touched.
Once affected by damage and scarred, there is little likelihood that the appearance of
the grain will improve. Combinations of the nature of defects, their size, location and
distribution, provide for an infinite variety of permutations that may present more or
less problems to the tanner. When severe defects are restricted in their distribution, it
may be possible to simply cut around affected parts of finished leathers and discard
any waste. Conversely, low intensity defects dispersed across the whole surface may
be corrected by a variety of chemical and physical processed. This may consist of a
very light abrasion (buffing) of the grain to remove any prominent scars. Ultimately,
the whole grain may have to be removed, and chemicals applied to provide for the
embossing of an artificial grain pattern.

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4. RESOURCES AND TRADE
4.1. Hides and Skins Production
Africa’s resources of 230.6 million cattle are estimated to have provided 26.9 million
hides (and calf skins) in 1999 (Appendix 9). This ‘off-take’ rate of 8.4% of the cattle
population represents an improvement from the 7.8% recorded 20 years earlier. The
off-take rate in Africa is however, much less that the 16.6% observed among
developing countries in general, and the 21.2% of the world as a whole.
The countries responsible for producing most of the hides in Africa are those already
renown for their livestock resources; namely: - Ethiopia, Kenya, Nigeria, South
Africa, Sudan and Tanzania. Together with Egypt, these seven account for 63% of all
the hides produced in Africa. The very high apparent off-take rate of 66% and
disproportionate production of hides in Egypt (4.2 million pieces from 6.4 million
cattle) is attributed to the importation of cattle to supply domestic and export demands
for meat (0.2 million from Australia in 1999, for example). High off-take rates of 21%
and 22% for Kenya and Tanzania, probably indicate maximal collection of hides. The
off-take rate of 28% in South Africa is indicative of the higher proportion of
commercial livestock production there; since commercial livestock production is
usually associated with higher off-take rates.
Africa’s resources of 241.0 million sheep are estimated to have provided 82.8 million
skins in 1999. This ‘off-take’ rate of 34.4% represents an improvement on the 12.8%
recorded 20 years earlier but, is much less that the 50.8% observed among developing
countries in general, and the 50.1% of the world as a whole. The countries responsible
for producing most of Africa’s sheep skins are those already well known for their
livestock resources; namely:- Algeria, Ethiopia, Morocco, Nigeria, Somalia, South
Africa and Sudan, together with Egypt, Libya and Tunisia. These ten countries
account for 65% of all the sheep skins produced in Africa. The exceptionally high
offtake rates of 96, 82 and 53%, for Libya, Tunisia and Algeria respectively, may be
attributed to illicit (or unrecorded) trade, and help to offset the very low off-take rate
of 21% in Sudan.
Africa’s resources of 209.3 million goats are estimated to have produced 67.7 million
skins in 1999. This ‘off-take’ rate of 32.3% represents an improvement on the 19.9%
recorded 20 years earlier but, is much less that the 46.8% observed among developing
countries in general, and the 47.2% of the world as a whole. The countries responsible
for producing most of Africa’s goat skins are those already well known for their
livestock resources; namely:- Ethiopia, Morocco, Nigeria, Somalia, South Africa and
Sudan, together with Niger, Tanzania, Burkina Faso, Kenya and Egypt. These eleven
account for 70% of all goat skins produced in Africa. Again, although most countries
exhibit similar levels of off-take, there are notable exceptions. Among these Rwanda
(200%), Egypt (88%) and, to a lesser extent, Ethiopia (45%) and Nigeria (50%). In
the case of Rwanda the high apparent off-take rate might be due to illicit ‘imports’
and in the case of Egypt could be attributed to skins from imports of animals destined
for slaughtering.

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4.2. Hides and Skins Trade
The imports and exports of hides and skins from all African countries in 1982 and
1999 are summarised in Table 1. Overall, the figures reveal considerable reductions in
the numbers of cattle hides, goat skins, and (to a lesser extent) sheep skins, being
exported from Africa countries. Imports of all hides and skins though small – never
more than 4% of total domestic production – were significant in the case of some
particular countries. For example, among hides, Algeria and Egypt accounted for
three quarters of imports in the early 1980s, but by 1999, South Africa and Zimbabwe
accounted for 89% of all imports of hides by African countries. South Africa also
accounted for about a quarter of exports of hides, but more than 30 other countries
were also involved in exports, at much lower levels.
Similarly, among sheep skins, two countries only (South Africa and Tunisia)
accounted for 91% of imports in 1999, while Ethiopia, Libya, South Africa and
Sudan, accounted for about 80% of exports (in the early 1980s and 1999). Among
goat skins, Algeria accounted for 57% of imports in the early 1980s while Ethiopia
was the most prominent exporter accounting for a quarter of the total in the 1980s and
half in 1999.
Table 1. Production and Trade of Hides and Skins in Africa

Type 1982 1999
Production Import Export Production Import Export
Cattle 21.1 0.8 4.9 26.9 1.2 4.0
Hides
Sheep 57.2 0.4 18.2 82.8 3.3 23.2
skins
Goat 41.7 1.1 10.5 67.7 1.0 7.9
skins
(millions of pieces, FAO, 2001)
The steady decrease in exports of hides and sheep skins from African countries in
particular, contradicts international trends among developing countries in general, and
is probably indicative of protectionist procedures. Africa has not, for example,
become a net importer of hides and sheep skins as have developing countries as a
whole. Indeed, South Africa is the only significant (in terms of volume) importer of
hides, and these imports (almost) balance exports of hides. Similarly, Tunisia does
import more sheep skins; in fact it exports none. Net trade in hides and skins from
Africa – balanced in favour of exports - have decreased in absolute terms except in
the case of sheep skins.
It should however be appreciated that some of the statistics for ‘developing countries’
are easily swamped by the activities of individual countries, such as China. Moreover,
vagaries in the trade classification systems used in the past – where raw and semi-
processed materials were sometimes arbitrarily lumped together – may make some
comparisons difficult to justify. It is hoped that the World Customs Organisation’s
recently approved new trade classifications (introduced in January 2002, see

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Appendix 10) will facilitate improvements in the description and monitoring of trade
in semi-processed materials.
Contrasted with world imports of 123 million hides and 262 million skins (237
million sheep and 25 million goats) in 1999, Africa’s contribution of exports is very
small.
4.3. Value of the Hides and Skins Trade
Many sub-Saharan countries- exclusive of South Africa and Botswana – derive more
that 10% of their GDP from agriculture; and for most, the figure is more than 30%.
Accordingly, income from exports of hides and skins, though not large in absolute
terms can be very significant in the economies of some countries. For example, in
Ethiopia, earnings from the exports of hides and skins were second only to coffee.
Unfortunately, prices (per piece) have remained almost unchanged over most of the
past 20 years (Table 2). In this respect, African countries are not unusual, because all
hides and skins prices – though subject to considerable short-term fluctuations – are
broadly, no higher now than two decades ago.
In other respects, there are considerable differences between the prices (per piece)
received for hides and skins from Africa, and globally. Prices for African hides are
about two-thirds the world average. About half of the discount is attributable to
differences in the weight; African hides (wet salted) average only 15.4kg compared to
18.0kg internationally. Bearing in mind that African goat skins are a little lighter than
goat skins generally, they are more-or-less the same in price. African sheep skins
however, though much the same in average weight as sheep skins internationally, are
a third more expensive than the world average. The premium prices paid for African
sheep skins is attributed to the prevalence of hair-type breeds, that are preferred in the
manufacture of leather, to wool types that predominate throughout the rest of the
world.
Table 2. Mean Value of Hides and Skins Exported from Africa
Item 1982 1999
Cattle hides 18.24 18.55
Sheep skins 3.19 3.29
Goat skins 1.83 2.97
(US$/piece, FAO, 2001).

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5. CONSTRAINTS TO PRODUCTION AND TRADE
5.1. Quantity of Raw Materials Production
African countries’ production of hides and skins is still below expectations based on
the size of their livestock resources (Table 3). Though Africa has 15% of the world’s
cattle it produces only 8% of the hides. Moreover, the average weight of preserved
hides from Africa has remained unchanged at 15.4kg, and sheep and goat skins at 0.7
and 0.6kg respectively. The major exception to this is the 18.9kg of South African
hides, attributed to the high proportion of commercial livestock production in the
country. The reduced production from among African hides persists throughout
tanning. For example, allowing 1.3 million hides for the production of heavy leathers
in Africa, the domestic production of light leathers provides for an average of only
19.2ft2 and 3.4ft 2 per hide and skin respectively.
Table 3. Livestock Resources and Hides and Skins Production.

Livestock (product) Africa Rest of World
Cattle (hides) 15 (8) 85 (92)
Sheep (skins) 23 (16) 77 (84)
Goat (skins) 31 (20) 69 (80)
Proportion of production (%).
Although it would be naïve to suggest that livestock production in Africa could, or

should, be fully commercialised to the levels seen in some developed countries, there
is scope for improvement, at least to those levels seen among developing countries in
general, and some African countries in particular. More, larger hides and skins, would
provide for an increased production of leather and leather products. Moreover, even if
the proportion (%) of good and bad hides and skins remained the same, there would
be a larger number of good materials.
5.2. Quality of Hides and Skins Supplies
The fact that some leathers - made in particular ways, from particular types of hides
and skins - tend to be more suitable for particular types of leather products, provides
the basis for the concept of quality. One widely accepted and simple definition of
quality is ‘fitness for use or purpose’. If a hide, skin or leather, generally considered
especially suitable for one particular purpose, actually fulfils that purpose adequately,
then the quality would be rated ‘good’. In this respect, the concept of quality has
nothing to do with price or cost – if an off-cut of leather is adequate for its proposed
use as a lining inside a shoe, its quality is good even though its cost may be very small
(Appendix 11).
Traditionally, quality (among hides and skins) is designated by sorting and/or grading.
Sorting and grading are often used indiscriminately and applied to various selection
procedures applied to hides, skins, leathers and leather products. There may, on
occasions, be little difference between them, except that sorting tends to be used to
describe the classification of materials based on objectively determined characteristics
that are relatively easy to measure; like type, size and weight. Grading is more often

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associated with subjectively determined characteristics that are relatively difficult to

measure; such as quality (fitness-for-purpose). Confusion between the two is
widespread and often the cause of fundamental problems in marketing exercises.
Irrespective, determination of quality among hides and skins during sorting and/or
grading is based on assessments of defects.
5.3. Defects
Livestock in Africa are as susceptible as any others to the accumulation of defects, but
the traditional, extensive and non-commercial husbandry methods used throughout
much of Africa tend to encourage the production of more defect-bearing raw
materials. Cattle, in particular, are very old by the time they are slaughtered and, for
example, an ox at 12 years of age is likely to have accumulated 6 times the pre-
slaughter defects accumulated by an animal of 2 years, slaughtered after commercial
production elsewhere in the world. Since pre-slaughter defects typically account for
two-thirds of defects on hides and skins, the implications for improvement are
substantial. If, for example, the causes of all the different sorts of defects on hides and
skins could be magically stopped overnight, pre-slaughter defects among cattle hides
would still take many years to disappear - from livestock that had already been
affected throughout the greater part of their lives.
Because of their pre-slaughter defects alone, many tanners consider African hides as
suitable only for the manufacture of corrected grain types; and not the full grain
(aniline) leathers that command the highest prices in leather products manufacture.
Pre-slaughter defects tend not to be so severe (but still significant) in hair-sheep and
goats, simply because they are not kept long enough to accumulate a serious burden
of them. Perversely, it is the full grain leathers (the production of which requires
relatively less in the form of chemicals and labour) that command the highest prices,
rather than the corrected grain leathers that are more expensive to produce.
Many pre-slaughter defects are accepted (albeit reluctantly) as an inevitable

consequence of extensive livestock production systems in African countries where
veterinary care is too expensive for many farmers. However, the diseases and mis-
handling that causes so much damage to hides and skins, tends also to affect the
morbidity and mortality of the animals themselves, and the outputs of milk and meat,
for example. The cost of the sickness and death of an animal is therefore often
considerably more that the cost of prophylactic or palliative veterinary interventions
(Appendix 12). And, in many cases, pre-slaughter defects can be avoided without any
significant cost; as in the case of proper branding (in the right location) and shearing
to control parasites on hair sheep. Some of the many ways of avoiding or controlling
pre-slaughter defects are described in Appendix 13.
Hides and skins are also susceptible to peri- and post-slaughter defects that, in
general, account for about a third of the defects on hides and skins. Unlike pre-
slaughter defects they occur over a fairly short period of time and at a relatively small
number of locations. Accordingly, peri-slaughter defects are easily susceptible to low-
cost, short-term interventions at those places where animals are collected and
slaughtered. For example, training in the use of proper knives can eliminate damage
caused by cuts and perforations. Similarly, post-slaughter defects such as putrefaction

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are relatively easy and cheap to eliminate by the introduction of prompt and proper
preservation (Appendix 13). It is important to note that peri-slaughter and post-
slaughter defects on hides and skins are commonly cited as the most serious problems
associated by tanners with hides, skins and semi-processed materials of African
origin. Many tanners are prepared to accept pre-slaughter defects as a nuisance (that
can be accommodated) as long as the hide or skin does not break up (because of
improper preservation) during processing.
5.4. Semi-Processed Materials and Leathers
Problems associated with the quantity and quality of raw materials become more
obvious in the course of production of semi-processed and finished leathers, though
the causes (and hence, solutions) are essentially the same. Process (tanning-related)
problems may also occur but - among importers of semi-processed materials from
Africa – such problems are not rated at widespread or serious. While semi-processed
materials produced domestically in Africa, are essentially indistinguishable from the
same materials made from (exported) African hides or skins elsewhere in the world,
they may be at a financial disadvantage when sold because of the extra costs involved
in the their production. For example, given the sums of money involved (in
establishing and equipping tanneries, importing chemicals, obtaining the skills
involved, and providing for effluent treatment) and the widespread over-capacity in
the industry, many tanning operations are not very profitable. Not surprisingly
perhaps, in Italy for example, there are tanners who have no tannery of their own, but
simply supply their raw materials to contractors.
5.5. Packaging, Transportation and Delivery
The packaging for raw and semi-processed material varies according to type and
sometimes according to customer preferences. Although the general requirements are
described in the applicable ISO standards (Appendix 14), any special requirements
may be set out in the International Contract No.6 for Raw Hides and Skins (which
also includes crusts), and International Contract No.7 for Finished Leather. These
documents, published by the ICHSLTA, are very widely used as the contractual basis
for the buying and selling of hides and skins, and semi-processed materials. The
contracts describe all aspects of the exchange; including the procedures to be used in
case arbitration is required.
As long as the producer country allows exportation on hides, skins and semi-
processed leather, the procedures for importation to the EU are not onerous. An
Importers Licence is required to begin operations, and thereafter Certificates (of
Origin and Health) are required for each particular consignment. For any particular
country in Europe it may be necessary to receive the imports at specified Border
Inspection Posts. Problems may be experienced in trying to import materials from
countries considered incompetent to provide Certificates of Health but these will be
highlighted during the application for an Importers Licence.
In most respects the provisions for the importation of hides and skins from Africa are
no different to the provisions for imports from any other part of the world. Indeed,
under the EU general system of preferences, imports from many African countries

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may be excused the duty (up to 6.5% on ‘carriage insurance and freight’ values)
payable on some semi-processed materials, in particular, entering Europe
While most tanners are able to place orders for, and receive deliveries of, hides and
skins from within the EU in three weeks or less, up to three months must be allowed
for deliveries from Africa, and most other parts of the world. Many tanners are trying
to shorten their supply lines; bypassing conventional international hides and skins
traders or agents, by establishing strategic supply alliances. This improves traceability
(provenance) among raw materials that is a major requirement of quality management
systems like ISO 9000. Ultimately, traceability could be a valuable opportunity for
respectable suppliers to capitalise on their established sources of materials ‘known’
and appreciated by particular users.
5.6. Pricing
International prices for hides and skins are subject to variation over a short period of
time, and may not be applicable in all countries. However, a couple of factors should
be borne in mind when determining or examining prices. For example, the theoretical
prices for cattle hides presented in Table 4 may seem to suggest that dried hides are
more valuable than salted or fresh materials. However, it should be appreciated that
after preservation, the weight of wet-salted, dry-salted and dried hides is about 80%,
60% and 50% respectively, of the fresh material. Accordingly, the prices presented
below would provide exactly the same price, per piece, for hides of the same size.
Table 4. Price Differentials Based on Preservation

Preservation Method Price (US$/kg)
Fresh 1.50
Wet-Salted 1.86
Dry-Salted 2.50
Suspension-Dried 3.00
When considering size alone, it is often assumed that big, heavy hides must be more
valuable and attract higher prices than small, lighter weight materials, but this is not
normally correct; although the area is certainly a most important characteristic for the
tanner. The point is that more area is provided by 1.0kg of a ‘light’ hide than by 1.0kg
of a ‘heavy’ one. For example, a fresh, 15kg hide would be expected to provide about
17.5dm2 of leather per kilogramme, while a 30kg hide would only provide 13.5dm2
per kilogramme. The yield of grain leather is therefore significantly greater in smaller
hides. Beyond this, small hides are likely to come from smaller and younger animals
with a smaller burden of pre-slaughter defects. For these reasons, small hides
(calfskins, for example) often command premium prices.
5.7. Ethical Investment
Though business people in general, and entrepreneurs in particular, are generally

reckoned to be influenced primarily by the profit motive, they cannot afford to be
unaware or insensitive to other issues that may impinge upon their businesses. For a
long time, good business practice has encouraged managers to look at all those
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stakeholders (not only the shareholders) who have a more-or-less direct interest and
impact upon the business. This has certainly included customers, but also includes
special interest and pressure groups that lobby politicians and the business
community.
Ethical issues are widely recognised as being increasingly important in more and
more business sectors, certainly in many European countries. The philosophy of
moral attitudes and behaviour – ethics – provides insights into peoples’ values and
beliefs and how they are exercised. This can have direct impact upon where (and with
whom) people will do business and trade, and what they will (and will not) purchase.
The concept of ethical investment is not new, nor should it be underestimated; an
early example would be the Quakers’ dissociation from the slave trade of the
eighteenth century. A more recent example would be consumers’ boycotting of South
African products in the 1980s. Early inputs to ethical investment were religiously
inspired and prior to 1983 in Britain, for example, investment funds concentrating on
ethical investment were prohibited. Since then, the UK Department for Trade and
Industry has allowed such ‘ethical’ funds and there were 18 in Britain by 1986.
The criteria used by investment funds to select unethical activities are listed in Table
5.
Table 5. Summary of Unethical Activities and Products.

Impact on people Armaments
Human rights abuses
Gambling
Alcohol
Pornography
Tobacco
Micro and macroeconomics (globalisation)
Impact on Animals Pharmaceuticals testing
Cosmetics testing
Household goods testing
Intensive farming
Fur production
Meat and milk production
Impact on the environment Pesticides
Pollution
Nuclear power
Ozone depletion
Tropical hardwoods
Genetic manipulation of foodstuffs
Intensive use of energy
It should be obvious that hides and skins - derived from livestock production,
submitted for tanning, and traded internationally – can be seen by some groups as
potentially unethical for investment and purchase purposes.

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To-date, campaigns against hides and skins have been relatively small, like:- general
boycotts of fur-based products, stories of the exploitation of children working 80
hours a week in Pakistan's soccer-ball industry, and People for the Ethical Treatment
of Animals’ complaints of animal abuse in India, for example. However there is an
increasing proportion of vegetarians, vegans, and animal rights activists who have, in
part at least, contributed to declines in meat consumption is Europe. And these
attitudes account for Compassion in World Farming (supported by the International
Fund for Animal Welfare) campaigning against the development of intensive factory
farming of animals that have contributed to the Livestock Revolution in many
developing countries.
So far, ethical trading issues have not had a negative impact on African countries. On
the contrary, they could be the beneficiaries of initiatives like those promoted by the
Trade Justice Movement, for example, set up in 2000 in UK. Irrespective of the
present situations, producers and suppliers in Africa need to be aware of the potential
impact of ethical trading issues.
5.8. Environmental Issues
Closely related to (and often overlapping) the subject of ethical investment, are
environmental issues; including the wider natural environment and the workplace.
Businesses are now increasingly required to take the widest possible view on
environmental issues, especially if they wish to quality for ISO 14,000 certification.
Tanners are therefore trying harder than ever to minimise the negative impact of their
activities, at all stages. In Europe, for example, this means increased use of
refrigeration - for the preservation of hides and skins – to reduce sodium chloride
discharges in tannery effluents. Similar considerations could, for example, provide
increased emphasis on preservation by drying in Africa.

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6. PROSPECTS FOR PRODUCTION AND TRADE
6.1. Projections of Livestock Resources; and the Supply of Hides and Skins
Consumption of primary livestock products such as meat and milk increased in

developed and developing countries from the 1970s to the 1990s. Although the
increases were greater (a factor of three and two, respectively) in developing
countries, the absolute levels of 21kg and 49kg in 1993 were well below those of
developed countries (at 76 and 192 kg respectively). These improvements in
developing countries were provided by increased in production and productivity
equivalent to a ‘Livestock Revolution.’ (Delgado et al 1999).
Unfortunately, the Livestock Revolution seems not to have affected Sub-Saharan

Africa (at least) where meat and milk consumption were only 9 and 23 kg respective
in 1993. Projected increases in consumption are only likely to take these to 11 and 30
respectively in 2020, and much of the increased supply of meat is likely to be from
pigs and poultry.
Increase in consumption of meat and milk during the 1980s to 1990s, equivalent to 6
and 4% respectively a year, are expected to continue albeit at a lower level of 3% to
2020 (Delgado et al., 2001). It should be appreciated that considerable variations are
likely to occur between developing countries. In sub-Saharan Africa (exclusive of
South Africa) for example, meat and milk consumption were considerably below
developing countries averages.
The modest changes likely in future consumption of meat and milk in Africa, suggest
that changes in the supplies of hides and skins will be equally modest. FAO estimates
(FAO, 1996) indicate increases of hides amounting to 1.9% a year to 2005, to provide
eventually 29.5 million pieces. Similarly, supplies of sheep and goat skins were
estimated to increase by 2.6% a year to proved 171.6 pieces in 2005.
6.2. Hides and Skins as Commodities
Although hides and skins have always been denigrated as a mere ‘by-product’ they
are more valuable than some of the ‘primary’ products of livestock production
(namely meat or milk). And, to try to improve their status, efforts have been made to
re-classify hides and skins as ‘co-products’ or even commodities. Commodities are
primary goods; raw or partly processed materials whose main cost is the finding,
gathering or harvesting them. They are traded for processing into finished goods.
Typical examples of conventional commodities include foods (grains, oils, tea, coffee,
cocoa, fruits, meat and eggs), raw materials such as fibres (wool, jute and sisal) and
base metals (tin, lead zinc and copper). Most are typically produced away from where
they are used.
Although most commodities are sold directly on the actuals market (spot market and
forward market) a significant proportion is sold in the commodity market, where
inputs from innumerable sources contribute to the establishment of a price. Most
commodities are sold in standard lots by negotiation; but perishables and hard-to-
grade items are sold by auction. The spot market is the most flexible but the forward

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provides for planning. Beyond this, provision for trading in futures is considered one
of the most important features of a commodity market because apart from helping to
establish prices they provide for insurance against the risk of price changes.
Futures are bought and sold by competitive auction in a commodity (futures)

exchange (or futures market via) options and indexes which are also traded on
commodity exchanges. Futures provide for the assumption or delegation of risk
involved in a change of price. The benefits of the futures market provide for better use
of the actuals market. Futures are likely to be more applicable to commodities that are
more volatile in their price. To provide for easy trading of futures contracts they must
be standardised (except for price). Hence, while some commodities (cotton in the UK)
is only available on the futures market) other commodities (like tobacco) are only
available on the spot market because they vary in quality too much. A restricted (low
elasticity of) supply, is also required to prevent short-term changes in demand being
accommodated by short-term changes to output. The futures market offers a
compromise between the spot and forward and some people use it as such. But many
more use it as a hedge against price change and others for speculation.
For speculation, a person might buy a futures contract for delivery at one price and
sell it later once the price has escalated. For hedging, a producer who buys on the spot
market but does not resell for months can protect himself by selling futures. If prices
decline he loses value on his inventories but can purchase at a lower price. If prices
increase he gains on his inventories but loses on his futures.
Commodity prices are very important because they contribute to terms of trade, where
some economists argue that developing countries are getting less for their exports
(commodities) and having to pay more for their imports (manufactured goods). Terms
of trade’ apply to the ratio of prices between a developing country’s prices for
commodities (exports) and those prices for its manufactured goods (imports).
Governments often attempt to improve ‘terms of trade’ by stabilising commodity
prices; by maintaining buffer stocks, for example.
With some commodities, the demand is stable but the supply is not (sugar and wheat).
With metals, the demand is often irregular but the supply is stable. With cotton both
are unstable. There is widespread resistance to the treatment of hides and skins as a
commodity but perhaps less to semi-processed materials as commodities.
The prices of commodities are important, because for many developing counties, a lot
of their income is from one or two commodities only. The decision on when to buy
and sell are difficult, they tend to be bureaucratic and subject to political influence.
Alternatives to the existing system or commodity markets, include multilateral
contracts, quotas and output controls. Problems with hides and skins is that there are
too many producers and so controls are difficult to enforce. Moreover, the use of
buffer stocks are not applicable to hides and skins.
6.3. Risk
Access to a commodity market would provide for reduction and control of one of the
tanners’ big concerns; namely risk. Tanners are obliged to take risks at various stages

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of leather production. For example, they risk not getting the quality grades of leather
they expect when they start processing a new batch of raw material. The situation is
worse with hides and skins of African origin. Hides and skins from Africa are widely
regarded (by those unfamiliar with them) as being ‘risky’ with respect to quality. This
perception (or prejudice) exists in many business attitudes towards Africa. For
example, a CFC study found that 94% of English language newspaper reports relating
to Africa were negative. Too often, when entrepreneurs undertake a risk analysis it is
newspaper-based. Unfortunately, risk is as much to do with perception as reality.
Ignorance increases people perception of risk which increases the ‘insurance’
premiums and reinforces people’s perceptions and prejudices.
Risks may be segregated into the physical, and market risks (Downey and Erickson,
1987). The first - consisting of hazards such as damage by weather, theft and spoilage
- can be minimised or eliminated by suitable precaution or, ultimately, insurance. But
market risks - such as loss of sources of supply, changes in prices, and variations in
exchange rates - cannot be insured against; but precautions can be adopted to mitigate
their impact. The ultimate security is provided by disinvestments, out of hides and
skins, or at least diversification into other unrelated products/commodities. Less
extreme alternatives include vertical integration, forward contracting and ‘hedging’ by
means of the futures markets (if they exist).
Vertical integration - in the form typified by parasitical combines (producing

livestock, slaughtering, selling meat, processing hide and skins and making shoes)
have long since been discredited. But, more specialised means of integration in the
form of strategic alliances are very much more popular and effective. The most
obvious example is tanners securing access to raw materials by means of joint-
ventures. This may be achieved by backward contracting to compliment forward
contracting on the sales of the tanneries products. However, integration and forward
contracting pre-suppose intimate knowledge of suppliers and consumers, and tend to
be inflexible in the long term especially.

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7. RECOMMENDATONS
The main objective of this study was to:-
assist African countries to identify actions to meet the quality requirements of

importers in order to improve domestic marketing and external trade of raw
hides and skins.
Quality - defined as fitness for use or purpose – although sometimes difficult to

define, includes all those issues that customers or consumers see fit to include within
their expectations. Hides and skins that arrive late, for example, may no longer be ‘fit
for their intended purpose’ and therefore would be designated ‘poor quality’ by some
customers.
As far as this particular study has been able to determine, the most important issue
from the importers’ (and potential importers’) perspective is:- the prevalence of
defects among imports from Africa. Problems associated with the quantity of hides
and skins available (in total and because of export restrictions) are also significant.
Defects on raw hides and skins persist thorough the course of tanning and therefore
affect the production and marketing of semi-processed materials; produced
domestically, or after exportation. Accordingly, raw material defects are of
importance in the domestic marketing of hides and skins as well (not just exports) and
hence among the domestic production and processing of leathers and leather products.
By inference, the same issue affects exports of semi-processed leathers and leather
products.
Actions designed to attenuate or eliminate defects on hides, skins and leathers need to
be directed to two parties; those involved in creating the defects, and those who might
be able to influence such individuals (Table 6).
Table 6. People Involved in Causing and Resolving Defects on Hides and Skins
Defect Type Causers Influencers
Pre-slaughter Livestock owners, Farmers’ associations, agricultural
veterinarians, livestock colleges, veterinary organisations,
traders, and drovers. traders’ associations and
government departments.
Peri-slaughter Livestock buyers, Livestock traders’ associations,
slaughterhouse operators, rural district (urban and municipal)
meat inspectors, butchers, councils, technical colleges, public
meat processors, and hides health authorities, meat processors’
and skins merchants. associations and tanners’
associations.
Post-slaughter Hides and skins merchants, Tanners’ associations, trade
transporters, and shipping promotion councils, public service
agents. media (newspapers, radio and so
on), national statistics organisation
and national standards associations.

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The details of the remedial work to be undertaken to eliminate and/or control defects,
is likely to depend on the details of the country involved, and the scope and scale of
the work intended. One larger-scale option would be the adoption of a nation-wide,
long-term campaign of activities, touching all components. Alternatively, a smaller-
scale option would be to focus on one issue only (Appendix 12). In either case, it is
important that objectives are clearly defined, and monitoring and control procedures
firmly established. Ideally, irrespective of the scale of the interventions, a long-term
perspective should be adopted with a view to sustaining any improvements that are
achieved. The reputation, of defects in raw materials of African origin, has been
accumulated over a long period and is likely to take a long time of persistent effort to
change.
If inputs to the alleviation of defects are to be commercially orientated (cost-effective

and sustainable) clearly defined targets, need to be established. It is important that the
financial benefits of any achievements must be determined. Too many previous, well-
intentioned efforts in the control of defects on hides and skins have failed because
they could not be proved to be worthwhile and worth continuing, once the initial
(physical and financial) impetus of the work was lost.
Based on the results of fieldwork undertaken by FAO, and in response to importers’

priorities, the easiest and most cost-effective way to generate a progression of tangible
improvements would be:-
First. Inputs to the adoption of prompt and proper preservation procedures (salting or
drying) at large and (later on) smaller processing establishments. This to be
accompanied by inputs to the reduction and control of other (minor) post-slaughter
defects.
Second. Inputs to proper ripping, flaying and fleshing at large and (later on) smaller
slaughtering establishments. This to be accompanied by inputs to the reduction and
control of other (minor) peri-slaughter defects.
Third. Inputs to the reduction and elimination of ‘man-made’ defects on live animals
(branding, scarification, horn rakes from un-polled animals, miscellaneous calluses
form harnesses, and so on. This to be accompanied by inputs to the reduction and
control of other pre-slaughter defects.
The inputs envisaged here need (and in Table 7) not be grand, high-budget projects
and programmes, to be undertaken by newly established institutions. Rather, there are
examples of well-intentioned merchants and tanners providing their own inputs to
improvements up-stream into the chain of supply of hides and skins. These examples
are worth copying. Inputs from merchants and tanners, for example, need to be
coordinated and reinforced by complementary inputs from other influential
organisations.
The importers’ requirements presented here were based mainly on comments and
information from markets in Europe dominated by Italy. But the same issues are
considered equally applicable to markets in the Near East and Far East, that together
with Europe account for more that 80% of global imports of hides and skins.

Table 7. Summary of Actions Required to Improve Domestic Marketing and External Trade of Raw Hides and Skins
Item Description Indicators Verification Assumptions

Objective Improve domestic marketing and Increases in the volume or value of National statistics, or surveys. Production, trade and processing of
external trade of raw hides and skins. production, and/or trade, in hides and hides and skins are likely to remain
skins. significant in the economies of many
developing countries – despite
variations is global demand.
Purpose Reduce defects on hides and skins. Reductions of defects and National statistics or surveys (in part) Reductions in defects (and
improvements in quality (as but predominantly, feedback from improvements in quality) will ‘add-
determined by tanners). tanners. value’ to raw (and semi-processed)
materials, and increase returns to
producers and processors.
Output Increased quantities of better quality More, larger and better quality hides National statistics or surveys (in part) Irrespective of variations in global
hides and skins and skins. but predominantly, feedback from demand, prices for larger quantities of
tanners. better quality hides and skins are
higher than the alternatives.
Activities Establishment and maintenance of Reductions in the damage on hides Feedback from tanners. Post-slaughter defects are the defects
improved methods of preservation, and skins attributable to post- most amenable to short-term, and low
storage and distribution of hides and slaughter defects. cost interventions.
skins among merchants – by teaching,
training, and extension.
Establishment and maintenance of Reductions in the damage on hides Feedback from tanners and, to a Peri-slaughter defects are amenable to
improved slaughtering techniques at and skins attributable to peri- lesser extent, hides and skins short/medium term, and low cost
abattoirs and slaughterhouse, and slaughter defects. merchants. interventions.
(subsequently) at slaughterslabs – by
teaching, training, and extension.
Establishment and maintenance of Reductions in the damage on hides Feedback from tanners. Post-slaughter defects are the most
improved animal husbandry and and skins attributable to post- serious cause of damage to hides and
disease control techniques among slaughter defects. skins but are only amenable to long-
farmers and livestock trades. term, and higher cost interventions.
Revised Draft Final Report, Study of Market Requirements for Importers of African Hides and Skins
Establishment and maintenance of up- Wider general knowledge of the Surveys of relevant stakeholders. Knowledge of the hides and skins
to-date market intelligence resources economic status of hides and skins, trade is essential to its sustained,
and more specific knowledge of the commercial exploitation.
relative merits of different types, and
their worth
Provision of easy access to micro- Prevalence of entrepreneurs engaged Survey of the sector. Many hides and skins are collected on
finance for entrepreneurs. in the hides and skins trade. a small scale, in widely dispersed
areas, by people with only limited
access to finance (for working capital
and so on).
Livestock development Increases in the productivity of National statistics, or surveys. Ultimately, the production of more,
animals. larger, and better quality hides and
skins, is limited only by the low
productively of many animals in
developing countries.

Appendix 1. Terms of Reference for Study 1
Market Requirements for Importers of African Hides and Skins
COMMON FUND FOR COMMODITIES
The Hides, Skins and Leather Sector in Africa

Essential Actions to Meet Quality Requirements of Importers
Background Information
The Seventh Session of the FAO Sub-group on Hides and Skins held in Rome
in June 2001 requested the FAO Secretariat to organize, with the support of the
Common Fund for Commodities, a Workshop to be held in Africa. The aim of the
Workshop is to assist African countries identify actions to meet the quality
requirements of importers in order to improve domestic marketing and external trade
of raw hides and skins. Consultants will prepare documents that will be the basis for
discussion at the Workshop.
Terms of Reference: Study No 1: “To Establish Market Requirements and

Preconditions for African Hides and Skins from an Importers Perspective”
The Consultant will make a market analysis from an importers perspective,

particularly those elements such as uniformity of raw products, regularity, delivery
schedules, etc., to identify the major problems exporters would need to overcome in
order to ensure continued growth in the trade.
Main Points to be addressed
The Consultant should structure his/her report around the following aspects:
1. To establish the market requirements and preconditions from an importers’

perspective for imports from African producing countries.
2. To analyse and identify the requirements by importers in terms of trade

regulations, standards, marketing arrangements and other measures affecting imports.
(a) Raw hides

(b) Wet Blue
(c) Crust
(d) Semi-finished
(e) Leather
(f) Leather Goods
3. Identify major markets in Europe, USA and Japan for each of the main goods.
4. Make recommendations on how the market requirements can be met.

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Expected Output
To prepare a report of 15 000 words to be presented to the Common Fund by

th
30 of June 2002 and subsequently present the report to the Workshop in Tunis in
October and to incorporate the workshop recommendations in the final report. The
report should be in Microsoft Word Format.

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Appendix 2. Bibliography
Delgado, C.L., Livestock to 2020: The Revolution Continues.

Rosegrant, M.W. and International Food Policy Research Institute, USA. 38
Meijer, S. 2001. pages.
Downey, W.D. and Agribusiness Management. McGraw Hill. ISBN 0-07-

Erickson, S.P. 1987. 017667-1. 477 pages.
Euromonitor Miscellaneous market reports.
FAO, 1995. Hides and Skins for the Tanning Industry. FAO. ISBN 92-
5-103746-9. 153 pages.
FAO, 2001. World Statistical Compendium for Raw Hides and Skins,
Leather and Footwear, 1982-2000. FAO. 92-5-004574-3.
168 pages.
FAO (Publication Hides and Skins for Farmers.

pending)
KeyNote Miscellaneous market reports.
LMC, 1997. The Leather Industry in Transition; Strategies for the Next
Decade. Volumes I and 2.
Mintel Miscellaneous market reports.
UNIDO, 1994 Acceptable Quality Standard in the Leather and Footwear

Industry.

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Appendix 3. Organisations Contacted
African Federation of Leather and African Hide Trading

Allied Industries (AFLAI) Dale King
TUNIS Marketing Director
Tel + 216 1 791088 1, Studebaker Street
Fax + 216 1 792452 Markman Industria
E-mail: PO Box 2526
mzoughi.mzabi@carthagooil.com.tn Port Elizabeth
South Africa
Tel + 27 41 4057000
Fax + 27 41 4611498
E-mail dalek@aht.kolosus.co.za
American Leather Chemists Asociación de la Indústria de la Piel

Association (Journal) para el Comercio Exterior (Leather
Texas Tech University Industry Association of Spain for
Box 45300 Foreign Trade, ACEXPIEL)
Lubbock Valencia, 359 3e
Texas 79409-5300 08009 Barcelona
USA Tel + 34 3 459 33 96
Tel + 1 806 7427296 Fax + 34 3 458 50 61
Fax + 1 806 7427298 E-mail inform@leather-spain.com
Web
http://www.alca@leatherchemists.org
Asociación Española de Comercio Bomar Conoceria S.p.A.

Exterior de Empresarios Fabricantes Alesandro Bomar
de Curtidos (FECUREX) 56024 Ponte a Egola
Hernán Cortés, 4-3e Via Pannocchia, 7
46004 Valencia Pisa
Tel + 34 6 3510153 Italy
Fax + 34 6 3510081 Tel + 39 0571 49392
Fax + 39 0571 498870
Web www.bomar-spa.com
E-mail info@bomar-spa.com
British Leather Confederation British School of Leather Technology

Kings Park Road University College Northampton
Moulton Park Park Campus
Northampton NN3 6JD Boughton Green Road
UK Northampton NN2 7AL
Tel + 44 1604 679952 UK
Fax + 44 1604 679998 Tel + 44 1604 735500
Web http:www.bleathertech.com Fax + 44 1604 721625
Web http://www.nene.ac.uk

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Common Fund for Commodities Compassion in World Farming Ltd

Willemshuis (CIWF)
Stadhouderskade 55 Charles House
1072 AB Amsterdam 5A Charles Street
Netherlands Petersfield
Tel + 31 20 5754949 Hampshire
Fax + 31 20 6760231 England
Web http://www.common-fund.org E-mail compassion@ciwf.co.uk
Conceria Nuova Impala s.r.l. Confederation of National

Mauro Vannuccci Associations of Tanners and Dressers
Via Liguria, 22a of the European Union (COTANCE)
56029 Santa Croce sull’Arno Rue Belliard 3
Italy B-1040 Brussels
Tel + 39 0571 30485 Belgium
Fax + 39 0571 35608 Tel + 32 2 5127703
Web www.nuovaimpala.com Fax + 32 2 5129157
E-mail mauro@nuovaimpala.com Web http://www.cotance.com
Email info@euroleather.com
Consultative Group on International Dermatech International Ltd

Agricultural Research (CGIAR) Bill Mather
CGIAR Secretariat Turnberry House
The World Bank 1404/1410, High Road
MSN G6-601 Whetstone
1818 H Street NW London N20 9BH
Washington, DC 20433 USA UK
Tel + 202 473-8951 Tel + 44 20 83437272
Fax +202 473-8110 Fax + 44 20 83437288
E-mail cgiar@cgiar.org E-mail sales@dermatechint.com
Web http://www.cgiar.org
East Hides Ltd Eastern and Southern Africa Leather

Charlie Clarke Industries Association (ESALIA)
136/144, Golders Green Road PO Box 640
London NW11 8HB Village Market
UK Nairobi
Tel + 44 20 84557797 Kenya
Fax + 44 20 82019269 Tel + 254 2 446490
Web http://www.easthides.com Fax + 254 2 445344
E-mail office@easthides.com E-mail admin@esalia.org

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Ermos International Corp European Confederation of the

Ernesto R Moos Footwear Industry (CEC)
PO Box 671
6612 Ascona
Switzerland
Tel + 41 91 7851400
Fax + 41 91 7851401
E-mail ermos@bluewin.ch
European Network for the Leather Federation Francaise de la Tannerie –

Industry, TANNET Megisserie (FFTM)
Web www.euroleather.com Mr P.Batigne, Président
rue de Provence, 122
F- 75008 Paris
France
Tel + 33 1 45 22 96 45
Fax + 33 1 42 93 37 44
Web http://www.leatherfrance.com
Food and Agriculture Organisation of General Agreement on Tariffs and Trade

the United Nations (Replaced by the WTO in 1995)
Giancarlo Mattioni
Brian Moir
Peter Steele
Vialle delle Terme di Caracalla
00100 Rome
Italy
Tel + 39 06 57053615
Fax + 39 06 57053152
http://www.fao.org
Genesis Ecotec s.r.l. GERIC

Gustavo A Defeo
Managing Director
Via Lombardia, 43
56029 Santa Croce sull’Arno
Italy
Tel + 39 0571 360608
Fax + 39 0571 360641
E-mail info@genesis-ecotec.com

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International Agricultural Trade International Council of Hides, Skins

Research Consortium (IATRC) and Leather Traders Associations
University of Minnesota (ICHSLTA)
Department of Applied Economics Douglas House, Douglas Road
231-G Classroom-Office Building Melrose, Roxburghshire
1994 Buford Ave. TD6 9QT Scotland
St. Paul, MN 55108-6040 UK
Tel + 44 1896 822233
Fax + 44 1896 823344
Web http://www.ichslta.org
International Council of Tanners International Fund for Animal

(ICT) Welfare (IFAW)
PO Box 501 International Headquarters
Wellington 7654 411 Main Street
RSA P.O. Box 193
Fax + 27 21 864 1272 Yarmouth Port, MA 02675
E-mail tony@axehill.co.za Tel + 1 508 744 2000
Fax + 1 508 744 2009
E-mail info@ifaw.org
Web www.ifaw.org
International Labour Office (ILO) International Livestock Research

4, route des Morrillons Institute (ILRI)
CH-1211 Simeon Ehui
Geneva 22 Coordinator
Switzerland Livestock Policy Analysis Programme
Tel + 41 22 7996111 PO Box 5689
Fax + 41 22 7988685 Addis Ababa
Web http://www.ilo.org ETHIOPIA
Tel + 251 1 463495
Fax + 251 1 461252
E-mail s.ehui@cgiar.org
Web http://www.cgiar.org/ilri/
International Organisation for International Trade Centre (ITC),

Standardisation (ISO) (UNCTAD/WTO)
Case Postale 56 Johanna de Paredes
CH-1211 Palais de Nations
Geneva 20 1211 Geneva 10
Switzerland Switzerland
Tel + 41 22 7490111 Tel + 41 22 7300111
Fax + 41 22 7333430 Fax + 41 22 7334439
Web http://www.iso.ch Web http://www.intracen.org
E-mail itcreg@intracen.org

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International Union of Leather Italprogetti Engineering s.r.l.

Technologists and Chemists Societies Sergio Dani
(IULTCS) Sales Manager
Dr Richard Roy Lugarno Paccinotti, 59a
British School of Leather Technology 56020 San Romano
NN2 7AL Italy
Northampton Tel + 39 0571 450477
Tel + 44 1604 735500 Fax + 39 0571 450301
Fax + 44 1604 711183 E-mail info@italprogetti.it
E-mail: richard.roy@nene.ac.uk
KT Trading AG LeatherXchange
Michael Rubinovitz Tel + 34 93 4777755
Sales Manager Fax + 34 93 4777760
Bösch 45 E-mail info@leatherxchange.com
CH-6331
Hünenberg
Switzerland
Tel + 41 41 7843535
Fax + 41 41 7843536
Web http://www.kt-trading.com
E-mail mdr@kt-trading.com
LMC International Maxi s.r.l.

14, George Street Andrea Luchi
Oxford Via Lazio, 42
Tel + 44 1865 791737 51018 Pieve a Nievole
Fax + 44 1865 725485 Italy
Tel + 39 0572 802285
Fax + 39 0572 951308
E-mail a.rosa@arcadiatel.it
National Association of Italian Natural Resources International (NRI)

Manufacturers Footwear, Park House
Leathergoods and Tanning Machinery Bradbourne Lane
(ASSOMAC) Aylesford
Mario Pucci Kent
4a, Via Matteotti ME20 6SN
27029 Vigevano UK
Italy Tel + 44 1732 878686/7
Tel + 39 0381 78883 Fax + 44 1732 220498/9
Fax + 39 0381 88602 Web http://www.nrinternational.co.uk
Web http://www.assomac.it
E-mail pucci@assomac.it

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Office Malien du Betail & de la Viande Organisation Commune Africaine et

Ibrahim Diane Mauricienne (OCAM)
Managing Director
PO Box 1382
Bamako
Mali
Tel + 223 223858
Fax + 223 224979
People for the Ethical Treatment of Pittards plc

Animals (PETA) John Moriarty
Sherborne Road
Yeovil
Somerset
UK
Tel + 44 1935 474321
Fax + 44 1935 427145
Web http://www.pittardsleather.com
E-mail jmoriarty@pittards.com
Pluripell s.r.l. Societe Tan Aliz

Patrizio Cioni Mahanmadou Ouedraogo
PO Box 99 Managing Director
Via della Pace, 3 1, Succursale
56024, Ponte a Egola PO Box 01
Pisa 611 Ouagadougou
Italy Burkina Faso
Tel + 39 0571 485085 Tel + 226 356130
Fax + 39 0571 499333 Fax + 226 356019
E-mail pluripee@leonet.it E-mail grpaliz@cenatrin.bf
Society of Leather Technologist and South African Skin Hide and Leather
Chemists (Journal) Council
38, Roseholme Road Mr Dave Sweetnam
Northampton LIRI Technologies, Prince Alfred Street,
NN1 4TQ Grahamstown
UK PO Box 185, Grahamstown, 6140
Tel/Fax 44 1604 635932 Republic of South Africa
Web http://www.sltc.org Tel + 27 46 622 7310
Fax + 27 46 622 6517
Cell: 083 657 1212
E-mail LRI@hs.ttu.edu

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Stam Bolas & Son Syndicat de la Tannerie Française

Stam S Bolas Président Mr. Prêtre
4, Alkaiou Street Délégué Général Mr. Jean-Marc
11528 Athens Bonneville
Greece 122, rue de Provence
Tel + 301 07754335 75008 Paris
Fax + 301 07782001 Tel + 33 1 45 22 96 45
E-mail bolas@acci.gr Fax + 33 1 42 93 37 44
E-mail FFTM@leatherfrance.com
Syndicat Général des Cuirs et Peaux United Nations Economic Commission

Président : Mr. Leconte for Africa (UNECA)
Bourse de Commerce P.O. Box 3001
2 Rue de Viarmes Addis Ababa
75040 Paris Cedex 01 Ethiopia
Tel + 33 1 45 08 08 54 Tel + 251 1 517200
Fax + 33 1 40 39 97 31 Fax + 251 1 510365
Union Nazionale Commercio Pelli Unione Nazionale Industria Conciaria

Grezze (UNIC)
Dr Renzo Restani President : Mr. G. Valter Peretti
Palazzo S/1, Strada 7 Director: Dr. Mercogliano
Via Milanofiori Via Brisa 3
20089 Rozzano I - 20123 Milano
Milan Tel + 39 02 80 10 26
Italy Fax + 39 02 86 00 32
Tel + 39 02 8243293 E-mail info@unic.it
Fax + 39 02 8243358
E-mail rresta@tin.it
United Nations Conference on Trade United Nations Environment

and Development (UNCTAD) Programme
Palais des Nations PO Box 30552
CH-1211 Nairobi
Geneva 10 Kenya
Switzerland Tel + 254 2 621234
Tel + 41 22 9071234 Fax + 254 2 623927
Fax + 41 22 9070043 Web http://www.unep.org
Web http://www.unctad.org

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United Nations Industrial World Leather (magazine)

Development Organisation (UNIDO) 36, Crosby Road North
Aurelia Calabro Liverpool
Vienna International Centre L22 0QN
PO Box 300 UK
A-1400 Vienna Tel + 44 151 928 9288
Austria Fax + 44 151928 4190
Tel + 43 1 26026 Web http://www.worldleather.co.uk
Fax + 43 1 2692669
E-mail A.Calabro@unido.org
Web http://www.unido.org
World Trade Organisation (formerly

known as GATT in 1995)
Centre William Rappard
154 Rue de Lausanne
CH-1211
Geneva 21
Switzerland
Tel + 41 22 7 395111 main office
Tel + 41 22 7 395007 information
Fax + 41 22 7 395458 information
Web http://www.wto.org

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Appendix 4. Activities of Selected Organisations
IATRC (International Agricultural; Trade Research Consortium)
The objectives of the IATRC are to:-
Enhance the quality and relevance of international agricultural trade research

and policy analysis
Encourage collaborative research
Facilitate communication among trade researchers and analysts drawn from
universities, government agencies and the private sector in a range of countries
Improve public understanding of international trade and trade policy issues.
IATRIC sponsored the report on projections in livestock numbers written by Delgado

et al.
ICHSLTA (The International Council of Hides, Skins & Leather Traders'

Associations)
One of the ICHSLTA’s primary objectives is:- ‘to promote and organise joint action
by all or any of the associations … in any part of the world for the
purpose of promoting, developing and protecting the trade in hides, skins and leather’.
There are only 6 full members of ICHSLTA in Europe (France, UK, Holland, Italy,
Norway and Sweden) and 6 associate members (Eire, Belgium, Greece, Spain,
Switzerland and Turkey), so the scope of the organisation is therefore not necessarily
fully international. In the whole of Africa there is just one full member and one
associate; the Ethiopian Tanners Association and the Meat Corporation of Namibia,
respectively.
ICHSLTA is best known in the hides, skins and leather trades as publishers of:-
International Contract No.6 for Raw Hides and Skins (which also includes crusts), and
International Contract No.7 for Finished Leather. These are widely used by buyers
and sellers and, for example, provide for arbitration in the case of contractual
disputes. Resolving the latter might otherwise be very complicated and expensive in
the case of international exchanges. The copyright contract documents are available in
various formats and various languages. Very few traders use pro-forma invoices (in
the buying and selling of hides, skins and leathers) since they lack a lot of the
supplementary detail required to reduce the risk associated with such exchanges.
ICT (International Council of Tanners)
The primary objective of the ICT is ‘to promote the interests of the leather industry
internationally’. In Europe, in 2001, the ICT had 16 members (Austria, Finland,
France, Germany, Hungary, Iceland, Ireland, Italy, Netherlands, Norway, Portugal,
Spain, Sweden. Switzerland, Turkey and UK) but there was only one member is
Africa (South Africa). In 1996, ICT (and ICHSLTA) requested governments to

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remove quotas, taxes and other restrictions from international trade in the hides, skins
and leather sector; items covered by Chapter 41 of the World Customs Organisation.
ITC
The International Trade Centre (ITC) is the technical cooperation agency of the
United Nations Conference on Trade and Development (UNCTAD) and the World
Trade Organization (WTO); responsible for operational enterprise-oriented aspects of
trade development. ITC supports developing and transition economies, and
particularly their business sectors, in their efforts to realize their full potential for
developing exports and improving import operations. ITC works in six areas:-
Product and market development

Development of trade support services
Trade information
Human resource development
International purchasing and supply management
Needs assessment, and programme design for trade promotion
ITC’s technical assistance concentrates on the three issues for which it believes the
need for national capacity-building is most critical:- helping businesses understand
WTO rules, strengthening enterprise competitiveness, and developing new trade
promotion strategies.

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Appendix 5. Glossary
Actuals Spot and forward markets. Not the futures market
Commodity A product exchanged in trade, in particular widely traded

raw materials and agricultural commodities such as:- heat,
corn and so on.
Commodities are primary goods; raw or partly processed
materials whose main cost is finding, gathering or
harvesting them
Forward market Exchange of goods some time in the future.
Futures market A variation of the forward market; modified to reduce risk

and increase flexibility
Hide External covering, from a large animal.
Manufactured Products whose main cost is the manufacturing process.

products
Marketing ‘The study of the physical and economic flow of products

from the producer through intermediaries to the
consumer.’ (Downey and Erickson, 1987)
‘Having what you can sell’ rather than selling what you
have.’
Pelage The miscellaneous outgrowth from the epidermis of a hide

or skin; including, hair, wool, fur and so on.
Skin External covering, from a small animal.
Spot market Exchange of immediately available goods for immediate

payment.
Terms of Trade Ratio of average price of a country’s exports to the

average price of its imports.

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Appendix 6. Sources and Features of Hides and Skins
Sources
Cattle, sheep and goats are closely related; and members of the same taxonomic
family of Bovidae. A small number of genera are easy to identify within each group,
but many more difficult-to-distinguish breeds, also occur. Among sheep, more than
800 breeds are known to exist. The designation of a 'breed' - in goats, for example -
may be based upon objective assessment of characteristics such as origin, body size,
ear shape, and utility (meat, milk or hair). But, more subjective assessments may also
be important, so that the application of 'breed' status may be quite arbitrary. The
classification of breeds is particularly complicated in Africa, because livestock are
rarely selected and bred for one specific purpose, but must fulfil a variety of
functions. Despite this, there are examples of indigenous and exotic breeds that have
become very significant in Africa; including:- Africander cattle, merino sheep and
Red Sokoto (Maradi) goats.
Cattle (genus Bos) consist of two species - B. indicus and B. Taurus – both of which
are significant in livestock production. The former originated in Asia, and is
characterised by a prominent hump above the shoulder; as in the Zebu or Brahman
type, while B. taurus originated in Europe. Pure breeds (and crosses) of both species
are to be found in parts of Africa. Exotic dairy breeds from among B. taurus range in
size from the Jersey at 450kg to the Holstein-Friesian cross at 675kg. Among 'beef'
animals, the size of breeds varies from the Ndama (B. taurus) weighing only 250kg,
to the Africander (B. indicus) reaching more than 750kg.
There are several species of sheep (genus Ovis) but only the domesticated sheep (O.
aries) is widespread and significant in livestock production. The domestic sheep is
usually segregated into groups of breeds, including: fine wool types (merino);
medium/long wool types (which also provide meat); short-tailed (meat) types; fat-
tailed (dual-purpose) types; and hair sheep (including Persian lambs). The size of full-
grown sheep varies from the 30kg West African Dwarf, to more than 120kg among
merinos.
There are eight species of goats (genus Capra) but, like sheep, only the domestic
variety (C. hircus) is significant in livestock production. It is sometimes difficult to
distinguish goats from sheep, but male goats have beards, the tail of the goat is
generally shorter, and the horns of goats are longer and directed upward (backward
and outward) while those of sheep are twisted. Among the most prominent breed of
domestic goat is the Angora, famous for its long, fine, silky hair (mohair) sometimes
referred to as wool. Like sheep, the size of adult goats varies, from the 25kg of
Mzabites in North Africa, to more than 75kg in Anglo-Nubians.
With the possible exception of the skins of Persian lambs – derived from Karakul
sheep – hides and skins are not the primary product of animal husbandry, but a by-
product of meat, milk, and wool (or hair) production. Moreover, in many parts of
Africa, livestock are a source of draught power for working the land, and they also
provide a source of wealth and status (or power). Upon deliberate slaughter of the
animal, or death by other means, the hide or skin usually provides a potentially

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valuable by-product. In only a few countries is the hide or skin left on the carcase and
consumed with the meat. Such places include parts of Nigeria.
The circumstances under which hides and skins are produced are of fundamental
significance in how effectively and efficiently they may be used for various purposes.
Whole books (though few in number, Appendix 2) have been written on the subject,
which is of considerable importance in the marketing of hides and skins. With any
other commodity, details of production procedures would be central to their
utilisation. If hides and skins are to be traded more successfully, as commodities in
their own right, much greater understanding of their initial production is required.
Features
As mammals, cattle, sheep and goats are defined (in part at least) by the presence of
hair, fur or wool. The distinction between each type of pelage is sometimes arbitrary.
If the individual hairs are fine and closely packed, the pelage is called 'fur'. When the
hairs are soft, kinked, and matted together, the pelage is called 'wool'. Variations in
the form of hairs, observed on other animals, include:- whiskers, barbs, bristles, quills
and spines. In some animals, the pelage consists of two distinct components; a longer,
overlying growth of guard hairs, beneath which is a much finer growth of under fur.
Most cattle and goats tend to exhibit hair, and sheep a modified under fur called wool,
but there are important exceptions. The mohair 'wool' of the Angora goat has already
been mentioned. Another exception would be the Kashmir goat - a small animal
native to the Jammu and Kashmir regions of India and Pakistan - that is the source of
fine cashmere wool. Conversely, the Horro sheep of Ethiopia (and the Karakul
originating in Asia) are renown for their hair, rather than wool. This variation in
pelage has innumerable implications during the course of tanning, and will be referred
to later.
Although the colour of hides and skins varies tremendously, this is not usually a very
significant factor in processing. Most of the pigments reside in the hair (fur or wool)
and the epidermis, all of which are usually removed during the course of processing.
If leathers are to be processed hair/fur/wool-on, certain types of colours may affect the
dyeing and pigmentation processes but the problem is not a serious one.
Uses
While tanning – the manufacture of leather – remains the most important application
for hides and skins, it is not the only one. Small, but economically significant
quantities of hides and skins are used to provide high-grade gelatin (commercial
preparations of gelatine) for the pharmaceutical and photographic industries. Even
more gelatin is used in the food industry. Some other, traditional applications for
hides and skins – such as the manufacture of glue - have now been superseded by
alternatives including synthetic adhesives.

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Appendix 7. Tanning, Leather and Leather Products Manufacture
Tanning
Tanning is the irreversible change of hide or skin into leather and, strictly speaking,
excludes those reversible procedures involved in, for example, the dressing of fur
skins and the preparation of parchment. Historically, tanning was a very long
procedure based on the slow diffusion of high molecular weight (vegetable) tannins
into the middle (dermal) layer of hides and skins. Similar procedures are still used
today for speciality leathers, but the vast majority of tanning is undertaken with lower
molecular weight minerals (especially chrome tannin salts) that can be made to
penetrate hides and skins very rapidly.
Although tanning is the core of the leather-making process, it is only one in a whole
series of processes involved. Initially, and subject to their method of preservation,
hides and skins must be re-hydrated and cleaned. Any residual hypodermis (flesh)
must be removed and the epidermis (complete with hair, wool or fur) is removed by
one of a variety of procedures. The major steps in the rest of the leather-making
process are shown in Figure 2.
Shoes, Garments and Leathergoods Production
Historically, leathers made from hides and skins, were themselves used to make all
sorts of items, including saddles, harnesses, storage containers, boats, mechanical
belts and diaphragms. Some of these uses remain today but the vast majority of
leathers are now used to make shoes (soles, uppers, linings and so on), garments and
leather goods. For all these purposes, leather provides a unique combination of
properties that includes aesthetic appeal, functionality, and cost competitiveness.
Leather Grain
During the course of leather manufacture, the hair, fur or wool on the surface of hides
and skins is usually removed deliberately, together with the epidermis. The distinctive
pattern (grain) of the remaining dermis is one of the features most often associated
with 'real' leather. This pattern is almost entirely determined by the invaginations of
the hair (fur or wool) follicles from the overlying epidermis. The size and density of
follicles varies (from less than 15µm (0.000015mm) diameter in some sheep to more
that 100 µm in cattle. Accordingly, in cattle hides where the density of follicle may be
less that 1,500/cm2, the grain pattern of is rather coarse, that of goat skins generally
fine, and the grain pattern of sheep may vary tremendously according to the burden of
hair or wool. Hair type sheep skins are often indistinguishable from goats, but merino-
type sheep often provide skins that have been damaged by the sheer weight of the
fleece which can exceed 8.0kg.
Similarly, heavily-wooled sheep skins are often adversely affected by a middle layer
of fat within the dermis. When this intra-dermal fat is lost, the remaining voids
severely weaken the structure to such an extent that the grain and flesh layers may
separate from each other.

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Hides and Skins

(fresh/raw)
Hides and Skins

(preserved)
Hides and Skins

(rehydrated)
Hides and Skins

(limed)
Hides and Skins

(pickled)
Leathers
(vegetable tanned)
Leathers
(wet blues)
Leathers
(crusts)
Leathers
(semi-finished)
Leathers
(finished)
Shoes Garments Leathergoods
Figure 2. Schema of the Tanning Process.

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In a defect-free, full-grain leather, only the pattern of hair (wool or fur) follicles will
be obvious to the sight and touch. The pattern is more-or-less distinctive, and
characteristic of a particular type of animal (cattle, sheep or goat), a breed of animal
(hair, or wool type) and even the age of an animal (newborn, juvenile or adult). This
natural, uncorrected grain pattern may not be entirely consistent across the whole
surface – topographically, the distribution of hair follicles and the size of hair follicles
will vary in most animals – but the pattern will be regular enough to provide for full
use of most of the original hide or skin.
Unfortunately, the vast majority of man-made defects that affect hides, skins and
(hence) leathers, sooner or later become obvious within the grain. For example,
animals kept well beyond the end of their normal productive lifespan will accumulate
wrinkles and creases that remain as ‘growth marks’ in finished leathers. Similarly, the
vast majority of dermatological diseases that affect animals throughout their life will
remain on hides, skins and leathers, as scar tissues and sometimes open wounds.
Ultimately, even the preservation of hides and skins – if undertaken inadequately –
can lead to microbiological activity and hence damage to the grain layer.

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Appendix 8. Abbreviations and Acronyms
Br Birr, unit of currency in Ethiopia.

dm2 Square decimetre (0.1 x 0.1m).
ft2 Square foot – still a standard unit of area in the leather
industry – equivalent to 9.29dm2.
km2 Square kilometre.
ml Millilitre (0.001 litre).
mm Millimetre (0.001m).
tonne 1,000kg
µm Micrometer (0.001mm).

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Appendix 9. Africa’s Resources of Livestock, and Trade in Leather Products
Historical Aspects
Livestock have been domesticated and exploited by humankind since time

immemorial. Throughout their life, animals may be used to provide many services and
products including draught power, transportation, milk, wool (fur or hair), fertiliser,
and status. After death they provide meat and a variety of edible and inedible by-
products. Although hides and skins are eaten in some societies, they are generally
considered inedible and provide a very useful and potentially valuable raw material
for the leather industry. Since all countries have domesticated livestock of some sort,
all countries have the potential to supply hides and skins to the tanning industry.
Most hides and skins used to be processed - from the raw (or preserved) state, to
finished leather - on the same premises. Factors, such as the availability of adequate
supplies of water and access to vegetable tannins, promoted the development of once-
famous leather-making industries in places like Nottingham and Chesterfield (in the
UK). Colonisation of Africa in the nineteenth century provided increased access to
raw materials for the European tanning industry at a time - during the Industrial
Revolution - when there was a fast-increasing demand for leather and leather
products. Exploitation of these raw materials imported into Europe, continued
throughout most of the twentieth century. And, as early as the 1920s, hides and skins
improvement operations were already underway in some African countries.
Ultimately, tanning enterprises developed in some African countries and political

independence was associated with the establishment of more. Domestic tanning and
leather products manufacturing industries were seen as political and economic
priorities for the generation of employment and wealth. Accordingly, during the
1960s and 1970s, many countries in Africa tried to restrict the exportation of
unprocessed hides and skins, and to export more valuable, semi-processed and
finished leathers instead.
More recently, political and social developments in Africa have (like everywhere else
in the world) been overtaken by the effects of the economic imperative of
globalisation across many sectors, including leather. Enterprises engaged in the
leather sector have sought to improve efficiencies by reducing costs. The tanning
business in particular, had become increasingly capital-intensive, so, for example,
operators were forced to achieve higher and higher throughputs to justify (financially)
the purchase of the high-capacity (and high cost) machines required to handle hides.
Similarly, shoes manufacturers - heavily dependent upon manual labour, despite the
proliferation of miscellaneous machines - were forced to re-locate to countries with
low-pay economies.
Africa: The Continent, sub-Regions and Countries
With a total area of 30.3 million square kilometres and a population of 0.8 billion
people, Africa accounts for 22% of the Earth’s land mass and 12% of its population.
The 56 different countries range in size from The Gambia at just 11,295km2 and many
small island-republics, to Sudan at 2,505,813km2. Regional sub-divisions within the

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continent tend to be based on a variety of geographical, historical and political

characteristics. Most importantly, the Sahara Desert segregates sub-Saharan African
countries from:- Algeria, Egypt, Libya and Morocco in the north. The ‘Sahel’
describes the transition zone between the arid Sahara and the more humid West
Africa.
That part of Africa closely connected to Europe and Asia (and heavily influenced by
the culture and history of Arabia) has long been referred to as the Middle East.
Although the limits of the region are somewhat difficult to define, it is generally
accepted to include at least fourteen countries, stretching from Turkey in the north to
Yemen in the south; and from Libya in the west to Iran in the east. Similarly, the Near
East is a term most often applied to the whole of the Arab world, plus the countries of
Iran, Israel and Turkey. More specifically, the Maghreb (from the Arabic for ‘west’)
includes:- Algeria, Libya, Morocco and Tunisia, and is often extended to cover
Mauritania as well.
Unlike most of the developed world, many countries in Africa are still heavily
dependent upon agriculture for a considerable proportion of their Gross Domestic
Product. Moreover, for a variety of reasons, animal husbandry is still predominantly
extensive, non-commercial, and based on the use of multi-purpose breeds. Inputs of
veterinary care in many countries, for example, tend to below requirements.
Livestock Resources
Africa’s resources of cattle have increased significantly during the last 20 years, from
180.3 million (12% of the world total) in the early 1980s, to an estimated 230.6
million (15% of world total) in 1999 (Table 8). Of these, 58% are found in just 6
countries:- Ethiopia, Kenya, Nigeria, South Africa, Sudan and Tanzania.
Coincidentally, the largest absolute increases have occurred in two of these countries;
up by 57% and 79% respectively in Nigeria and Sudan in the last 20 years. Relatively
large increases in numbers have also been recorded in many countries with smaller (in
absolute terms) resources, but, given the errors sometimes associated with livestock
numbers, it is difficult to attribute a lot of significance to some of these increases.
Africa’s resources of sheep and goats have also increased during the 20 years to 1999,
from 186.2 million (15% of world total) and 133.4 million (27% of world total)
respectively, to 241.0 million sheep (23% of world total) and 209.3 million goats
(31% of world total) respectively. Although increases have occurred in most
countries, the most substantial have been recorded in Morocco (a 52% increase in
sheep numbers), Nigeria (increases of 118% and 64%, in sheep and goats
respectively) and Sudan (increases of 122% and 172%, in sheep and goats
respectively). Conversely, in Somalia, goat numbers decreased by 33%. Overall,
Africa has 26% of the world’s sheep and goats, but 59% are found in just 7 countries:-
Algeria, Ethiopia, Morocco, Nigeria, Somalia, South Africa and Sudan.

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Table 8. Livestock Resources of Africa in 1999
millions of animals
Country Cattle Sheep Goat

Algeria 1.7 18.2 3.4
Angola 4.0 0.4 2.2
Benin 1.4 0.6 1.2
Botswana 0.0 0.0 0.0
Burkina Faso 4.7 6.6 8.4
Burundi 0.3 0.1 0.6
Cameroon 5.9 3.9 3.9
Cape Verde 0.0 0.0 0.0
Central African Republic 3.0 0.2 2.6
Chad 6.0 2.5 5.1
Comoro Islands 0.0 0.0 0.0
Congo (Brazzaville) 1 0.1 0.1 0.3
Congo (Kinshasa) 2 0.8 0.9 4.1
Cote d’Ivoire 1.4 1.4 1.1
Djibouti 0.0 0.0 0.0
Egypt 6.4 4.5 3.3
Equatorial Guinea 0.0 0.0 0.0
Eritrea 1.8 1.5 1.5
Ethiopia 35.0 21.0 16.8
Gabon 0.0 0.2 0.1
Gambia 0.4 0.2 0.3
Ghana 1.3 2.6 2.8
Guinea 2.4 0.7 0.9
Guinea – Bissau 0.0 0.0 0.0
Kenya 13.8 7.0 9.6
Lesotho 0.0 0.0 0.0
Liberia 0.0 0.2 0.2
Libya 0.1 5.1 1.9
Madagascar 10.4 0.8 1.4
Malawi 0.8 0.1 1.3
Mali 6.2 6.0 8.6
Mauritania 1.4 6.2 4.1
Mauritius 0.0 0.0 0.1
Morocco 2.7 17.3 5.1
Mozambique 1.3 0.1 0.4
Namibia 0.0 0.0 0.0
Niger 2.2 4.3 6.6
Nigeria 19.8 20.5 24.3
Reunion 0.0 0.0 0.0
Rwanda 0.7 0.3 0.7
Sao Tomé e Principé 0.0 0.0 0.0
Senegal 3.0 4.3 3.6
Seychelles 0.0 0.0 0.0
Sierra Leone 0.4 0.4 0.2
Somalia 5.1 13.1 12.3
South Africa 13.7 28.7 6.5
St Helena 0.0 0.0 0.0
Sudan 37.1 42.8 37.8
Swaziland 0.0 0.0 0.0
Tanzania 14.4 4.2 10.0
Togo 0.2 0.7 1.1
Tunisia 0.8 6.6 1.4
Uganda 6.0 2.0 3.7
Western Sahara 0.0 0.0 0.0
Zambia 2.4 0.1 1.2
Zimbabwe 5.6 0.5 2.8
Africa, not specified 6.5 4.1 6.2
Africa, Total 230.6 241.0 209.3
World, Total 1,515.1 1,057.9 674.1
Source ; FAO, 2001
1
Republic of the Congo.
2
Democratic Republic of the Congo.
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Although the livestock resources of Africa are dominated by those of just six
countries (with Ethiopia, Nigeria, South Africa and Sudan especially prominent in
small-stock and large-stock) there are discernible sub-regional trends. If, for example,
livestock numbers are mapped according to density of animals per unit area, three
more-or-less distinct distributions emerge. These areas are West Africa, Eastern and
Southern Africa, and North Africa (Table 9).
Table 9. African Countries with Significant Livestock Resources.

Sub-Region Country Cattle Sheep Goat
West Africa Benin + + +
Burkina Faso + + +
Cameroon + + +
Cote d'Ivoire +
Gambia + + +
Ghana + + +
Guinea +
Nigeria + + +
Senegal + + +
Sierra Leone + + +
Togo. + + +
Eastern and Angola +
Southern Africa Burundi + +
Eritrea + + +
Ethiopia + + +
Kenya + + +
Madagascar +
Malawi + +
Rwanda + + +
Somalia + + +
South Africa + + +
Sudan + + +
Tanzania + +
Uganda + + +
Zimbabwe + +
North Africa Morocco + +
Tunisia + +
Hides and Skins Production
Africa’s resources of 230.6 million cattle were estimated to have provided 26.9
million hides (and calf skins) in 1999 (Table 10). This ‘off-take’ rate of 8.4% of the
cattle population represents an improvement from the 7.8% recorded 20 years earlier.
The off-take rate in Africa is however, much less that the 16.6% observed among
developing countries in general, and the 21.2% of the world as a whole. The countries
responsible for producing most of the hides in Africa are those already highlighted for
their livestock resources; namely:- Burkina Faso Egypt, Ethiopia, Kenya, Libya,
Niger, Nigeria, South Africa, Sudan and Tanzania Tunisia.

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Table 10. Hides and Skins Production of Africa in 1999
Millions of pieces.
Country Cattle Hides Sheep Skins Goat Skins

Algeria 0.6 9.6 1.2
Angola 0.6 0.1 0.6
Benin 0.2 0.2 0.4
Botswana 0 0 0
Burkina Faso 0.4 1.5 2.7
Burundi 0.1 0.1 0.3
Cameroon 0.6 1.4 1.5
Cape Verde 0 0 0
Central African Republic 0.4 0.1 0.5
Chad 0.4 0.7 1.1
Comoro Islands 0 0 0
Congo (Brazzaville) 3 0 0 0.1
Congo (Kinshasa) 4 0 0.1 0.8
Cote d’Ivoire 0.3 0.6 0.5
Djibouti 0 0 0
Egypt 3.2 2.7 2.9
Equatorial Guinea 0 0 0
Eritrea 0.1 0.6 0.6
Ethiopia 2.7 8.1 7.5
Gabon 0.1 0.1 0
Gambia 0.0 0.1 0.1
Ghana 0.1 0.3 0.7
Guinea 0.1 0.1 0.2
Guinea – Bissau 0 0 0
Kenya 1.9 2.0 2.8
Lesotho 0 0 0
Liberia 0.1 0.1 0.1
Libya 0.1 4.9 1.1
Madagascar 0.8 0.2 0.5
Malawi 0.1 0 0.4
Mali 0.5 2.1 1.2
Mauritania 0.1 1.0 0.5
Mauritius 0 0 0
Morocco 0.6 6.1 1.5
Mozambique 0.3 0.1 0.2
Namibia 0 0 0
Niger 0.2 0.9 2.0
Nigeria 1.8 8.3 12.1
Reunion 0 0 0
Rwanda 0.2 0.1 1.4
Sao Tomé e Principé 0 0 0
Senegal 0.4 1.0 1.2
Seychelles 0 0 0
Sierra Leone 0.1 0.1 0
Somalia 0.5 3.6 2.4
South Africa 2.8 8.5 2.2
St Helena 0 0 0
Sudan 2.4 8.9 9.0
Swaziland 0 0 0
Tanzania 2.1 1.0 2.1
Togo 0.1 0.3 0.5
Tunisia 0.2 5.4 0.8
Uganda 0.6 0.7 1.3
Western Sahara 0 0 0
Zambia 0.2 0 0.4
Zimbabwe 0.4 0 1.0
Africa, not specified 0.6 1.1 1.4
Africa, Total 26.9 82.8 67.7
World, Total 321.9 530.1 339.8
Source ; FAO, 2001.
3
Republic of the Congo.
4
Democratic Republic of the Congo.
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Heavy Leather
The term ‘heavy’ is used to describe leather (especially from cattle hides) that is
processed without splitting to reduce its thickness. Traditionally, heavy leathers are
made using vegetable tanning processes, and the product is most commonly used in
the manufacture of shoe soles, for example. Only 12 African countries were engaged
in the manufacture of heavy leather from cattle hides and production amounted to
only 20.1 thousand tonnes in 1999 – less than 4% of the world total.
Table 11. Production and Trade of Heavy Leather from Africa

Raw 1982 1999
Material Production Import Export Production Import Export
Hides 15.9 0.2 0.1 20.1 1.6 0.1
(thousands of tonnes, FAO, 2001).
Egypt, Morocco, South Africa and Sudan alone, accounted for 86% of Africa’s
production of heavy leather. Africa’s imports and exports of heavy leathers amount to
4% and, less that 1%, of world totals respectively. Although four African countries
have been involved in the importation of heavy leather previously, only Morocco
imported recently; and only South Africa has been involved in exports. Given that
heavy leathers account for only 9.0% of all hides consumed in leather production,
Africa’s share of this is insignificantly small in global terms.
Light Leather
Light leathers account for about 91% of production from cattle hides, and all leather
derived from sheep and goats. African countries production of light leather from hides
and skins (Table 12) amounted to 4% and 10% respectively of global production – up
from 3.7% and 7.6% two decades earlier. However, these improvements are not in
line with changes in Africa’s resources of hides and skins, up by 42% and 76%
respectively (Table 12). Of the 27 countries in Africa engaged in light leather
production, eleven (Algeria, Egypt, Ethiopia, Kenya, Madagascar, Morocco, Nigeria,
South Africa, Sudan, Tanzania and Zimbabwe) accounted for 83% of light leather
production from hides. Similarly, 9 countries (Algeria, Burkina Faso, Egypt, Ethiopia,
Kenya, Morocco, Nigeria, Tunisia and Sudan) accounted for 85% of the production of
light leathers from skins.
Table 12. Production and Trade of Light Leather from Africa

Raw 1982 1999
Material Production Import Export Production Import Export
Hides 309.6 47.0 28.9 437.7 99.3 75.6
Skins 252.4 9.4 87.8 429.7 22.1 153.8
(millions of square feet, FAO, 2001).
Despite increases in domestic production of light leathers from hides (up 41% in
twenty years) the balance of trade has lead to a surplus of imports equal to 5% of
domestic production. Exports of light leathers from hides have halved in two decades,

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to 1% of global exports in 1999. Conversely, exports of leathers from sheep and goat
skins have exceeded imports by a factor of about 8 and the general volume of the
export trade has nearly doubled in the last two decades, in line with domestic
production.
Over the last twenty years the value of exports of light leathers have increased; from
US$0.70/ft 2 to US$1.31/ft 2 for material made from cattle hides, and from US$0.61/ft 2
to US$1.19/ft 2 for materials made from sheep and goat skins. In the case of leather
from sheep skins, the trend in price represents a catching up to 87% of global prices.
For light leathers made from cattle hides, prices for exports of light leathers indicate a
premium; above global prices of only US$1.07/ft 2. But, if the high value of South
Africa’s exports of upholstery leathers (at US$6.88/ft 2) are ignored, prices for light
leathers from hides in Africa have decreased slightly to US$0.66/ft 2 to remain at two-
thirds of global averages.
Shoes
Africa’s production of shoes has remained almost unchanged over the past 20 years
(Table 13) at about 172 million pairs, and in 1999 amounted to only 4% of an
increased global production. Although 31 countries in Africa manufactured shoes,
four countries (Egypt, Morocco, Tunisia and South Africa) accounted for three-
quarters of all production.
Table 13. Production and Trade of Leather Shoes in Africa

Item 1982 1999
Production Import Export Production Import Export
Shoes 174.7 16.7 6.4 172.3 22.2 20.2
(millions of pairs, FAO, 2001).
South Africa and Libya accounted for 66% of imports of shoes to African countries,
and Tunisia and Morocco, 83% of imports. The similarity between the volume of
imports and exports suggests that a lot of the trade in shoes was intra-continental.
In terms of their price, the value of exports of shoes increased from the equivalent of
US$6.05/pair in 1982, to US$11.45/pair in 1999. This appears to represent a
considerable improvement when considered against exports of shoes globally
(changing from US$9.77 to 13.04 during the same period). However, it is widely
accepted that the price of exports of African shoes is more a reflection of production
costs.

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Appendix 10. Customs Classifications; World Customs Organisation
Old System New System

41.01: Raw bovine hides 41.01: Raw hides and skins of bovine (including buffalo)
and skins, limed or or equine animals (fresh or salted, dried, limed, pickled or
pickled but not tanned. otherwise preserved, but not tanned, parchment dressed or
further prepared) whether or not dehaired or split.
4101.20 Whole hides and skins of a weight per skin
not exceeding 8kg when simply dried, 10kg when dry
salted, or 16kg when fresh, wet salted or otherwise
preserved.
4101.50 Whole hides and skins of a weight exceeding
16kg.
4101.90 Other, including butts, bends and bellies.
41.02: Raw sheep and 41.02: Raw skins of sheep or lambs (fresh, or salted, dried,
lamb, limed or pickled Limed, pickled or otherwise prepared, but not tanned,
but not tanned. parchment-dressed or further prepared), whether or not
wool on or split.
4102.10 With wool on, without wool on.
4102.21 Pickled.
4102.29 Other
41.03: Other raw hides 41.03: Other raw hides and skins.
and skins (includes goat, 4103.10 Of goats or kids.
reptiles) 4103.20 Of Reptiles.
4103.03 Of swine.
4103.90 Other.
41.04: Bovine leather 41.04: Tanned or crust bovine hides and skins (including
buffalo) or equine animals without hair on, whether or not
split, but not further prepared.
4104.11 Full grains, unsplit; grains split – in the wet
state including wet blue.
4104.19 Other in the wet state including wet blue.
4104.41 Full grains, unsplit; grains split – in the dry
state crust.
4104.49 Other – in the dry state (crust)
41.05: Sheep and lamb 41.05: Tanned or crust skins of sheep and lamb skins,
leather without wool on whether or not split, but not further
prepared.
4105.10 In the wet state including wet blue.
4105. 30 In the dry state (crust)

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41.06: Goat and kid 41.06: Tanned or crust hides and skins of other animal,
leather without wool or hair on, whether or not split, but not
further prepared.
4106.21 Of goats or kids in the wet state including
wet blue.
4106.22 Of goats or kids in the dry state including
crust.
4106.32 Of swine in the dry state including crust.
4106.40 Of reptiles
4106.91 Of other animals in the wet state including
wet blue
4106.92 Of other animals in the dry state including
crust.
41.07: Leather of other 41.07: Leather further prepared after tanning or crusting,
animals including parchment-dressed, leather of bovine (including
buffalo) or equine animals, without hair on, whether or not
split, other than leather of heading 41.14.
4107.11 Whole hides and skins full grains unsplit.
4107.12 Whole hides and skins grains, split.
4107.19 Whole hides and skins other
4107.91 Other including sides, full grains, unsplit.
4107.92 Other including sides: grains, split.
4107.99 Other.
41.08: Chamois leather See 4114.10
41.09: Patent leather, See 4114.20
patent laminated and
metallised leather.
41.10: Parings and waste See 4115.20
41.11: Composition See 4115.10
leather
41.12: Leather further prepared after tanning or crusting,
including parchment dressed, leather of sheep or lamb,
without wool on, whether or not split, other than leather of
heading 41.14.
41.13: Leather further prepared after tanning or crusting,
including parchment dressed, leather of other animal,
without wool or hair on, whether or not split, other than
leather of heading 41.14.
4113.10 Of goats or kid.
4113.20 Of swine.
4113.30 Of Reptiles
4113.90 Of others
41.14: Chamois (including combination chamois) leather:
patent leather and patent laminated leather; metallised
leather.
4114.10 Chamois (including combination chamois).

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4114.20 Patent leather and patent laminated leather;
metallised leather.
41.15: Composition leather with a basis of leather or
leather fibre, in slabs, sheets or strips, whether or not in
rolls; parings and other waste of leather or of composition
leather, not suitable for manufacture of leather articles;
leather dust, powder and flour.
4115.10 Composition leather with a basis of leather or
leather fibre, in slabs, sheets or strips, whether or not
in rolls.
4115.20 Parings and other waste of leather or of
composition leather, not suitable for manufacture of
leather article; leather dust, powder and flour.
Source; Leather, 2001.

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Appendix 11. Marketing
Definition
To influence and affect trade in hides, skins and leather products, traders must have
some understanding and appreciation of marketing. Like many other terms associated
with the hides, skins and leather trades, marketing often means different things to
different people. Most often it is used to describe selling, though this is only one part
of the marketing process. One simple definition of marketing is ‘the promotion and
facilitation of the exchange of goods’. In this respect, marketing is merely another
(albeit crucial) business function, comparable to operations/production and/or finance.
But marketing is increasingly being adopted as a business philosophy and would
certainly be a core issue in the establishment of any new enterprise, and the
subsequent development of a business strategy. This highlights the old conventions
associated with selling (finding buyers for what you have) and the new ones of
marketing (providing what your customers require - and determining what the price
should be).
Marketing of some products, in some countries, is very complicated and expensive,

but adds value and may provide bench-line prices, moderated subsequently by
competition (Downey and Erickson, 1987). Some marketing channels (supply chains)
are very simple (producer’s farm shop, direct to a customer/consumer buying on the
premises). Others are more convoluted and may involve producers, processors,
brokers, wholesalers, retailers and so on. During the course of a product’s movement
through the marketing channel, its utility is transformed and value (hopefully) is
added. Accordingly, an individual hide sitting in a producer’s back yard in Africa is
not (in marketing terms of its utility) the same as another hide (bundled with many
others) awaiting processing in a tannery in Europe. Although many characteristics of
each piece (type, size, weight, quality and so on) may be exactly the same, other
aspects of their utility (and hence their market values) are different.
There are four principal components of utility:- form, time, place and possession.
Different participants in the marketing channel contribute to different aspects of
utility. For example, farmers contribute to form by growing animals and increasing
the size of hides and skins. Butchers also contribute to form by removing hides and
skins from the underlying carcase. Hides and skins traders contribute to ‘time’ by
accumulating larger numbers of hides and skins, and storing them, over a period of
days, weeks or months. Merchants contribute utility of ‘place’ by collecting hides and
skins from over larger areas, to collect and locate them centrally. At various stages of
the marketing channel, and certainly at the end, changes in utility of possession occur
when hides and skins are bought and sold.
All inputs to the marketing channel, as classified in one of the previous aspects of
utility, are hopefully, orientated to adding value and therefore providing profit to the
operator of that stage of the marketing channel. Many of these inputs may not be seen
by producers of hides and skins, and therefore not appreciated by them. This often
leads to hides and skins merchants (those most involved in practical inputs to
marketing) gaining bad reputations as ‘profiteering middlemen’. Similar accusations
occur in many other agro-industries. Despite this, it reasonable to assume that most

Skins
traders do a very worthwhile and valuable job, collecting a widely dispersed material
originating in innumerable, remote locations, for collection and distribution to end-
users, often in other countries and other continents. Certainly, hides and skins
merchants are prime candidates for attention in hides and skins improvement
campaign designed to add value in the chain of supply and hence improve marketing.
Value Chain
Improvements in the potential application (markets) for hides, skins and leathers are
of special interest because different applications for hides and skins provide scope for
‘adding value’ and therefore achieving higher prices. As with many goods, the
demand for some leathers and leather products exceeds supply, and prices are higher
accordingly. When producers are able to elevate their products - away from utilitarian
materials - they are likely to be rewarded accordingly. In some businesses and with
some commodities, adding value may be achieved by branding; where the inherent
characteristics of the material in question may be indistinguishable from its
competitors – but the perception of quality is different.
Though perceptions are crucially important in the hides, skins and leather trade,
branding (with a few notable exceptions – especially among finished goods) is not
very widespread. Adding value in the hides skins and leather trade is very much a
practical issue, and improvements must be tangible, measurable and sustainable if
they are to be appreciated. Most of the factors that contribute to (or detract from)
value in leather manufacture (and the production of leather products) are well known
and many have already been described. These factors are however, not always readily
available or easily isolated from issues that are less relevant, or even incorrect.
Information (quantitative and qualitative) about what is, and is not, relevant to adding
value, is very much part of marketing.
Quantity
Innumerable statistics - on livestock, hides, skins, leathers and leather products – have
already been presented, but they are not without problems during the course of any
analysis of production and trade. For example, livestock censuses may be little more
than projections based on very small and inappropriate samples, records of sheep and
goat skins may be confused, and quantification based ‘by piece’ gives way to
quantification based on weight or area during the course of tanning. These problems
become much more acute during the examination and determination of quality.
Quality is sometimes difficult to define and, even once defined, sometimes difficult to
measure.
Quality
The word quality is often used (or misused) in different ways by different people.
Even among experienced tanners, an invitation to comment on the ‘quality’ of a
sample of leather can yield as many opinions are there are people. The word quality is
for example, commonly used as an adjective, to qualify (or suggest) materials,
products or services, which are superior (and therefore more expensive) than
alternatives. For example, when asked to name a ‘quality’ car, many people would

Skins
think immediately of Rolls Royce or Mercedes, when these are probably better
described as ‘luxury’ cars. By analogy, the best (most suitable) car, for use up-
country, in isolated regions of Africa, would probably be some sort of easy-to-
maintain, four-wheel drive vehicle. The same logic applies to hides, skins and
leathers.
If ‘quality’ meant expensive, and was only, for example, applicable to highly-priced
exotic gameskins (like ostrich), the concept would be irrelevant in application to the
majority of lower priced hides, skins and leathers. But, certainly, throughout this
revised draft report, quality (in terms of fitness-for-purpose) will be applicable in
principle to all materials, irrespective of their price. Similarly, improvement will mean
improvements in the use for which materials were intended and, better still,
improvements in terms of the potential application of materials. So, for example,
damaged sheep skins of a quality fit only to provide shoe-lining leather, may be
improved to provide scope for their use as gloving leathers. Used for different
purposes (or for the same purpose but with simpler/cheaper production processes)
hides, skins and leathers provide greater scope for improved marketing and hence,
added value, and hopefully, higher prices.
Sorting and Grading5
Sorting requires little skill and only basic equipment to undertake, and is often
considered so elementary that parts of it are easily overlooked entirely in the
description of a consignment. Information provided by sorting of hides and skins
should include reference to the following:-
Type: Cattle hide (cow), sheep skin (long-

wooled), goat (kid), or so on.
Weight: Heavy (greater than 30kg), light (less that
10kg, or so on.
Preservation: Suspension dried (shade), wet salted,
refrigerated, or so on.
Sorting may be extended to provide other useful information such as the geographical
source of the hides or skins, and their date of their production. Generally, the more
information that is provided the better it is for the tanner, but the information must be
correct and unambiguous. For example, references to the weight of hides and skins
should specify whether the weight is of the fresh hide before preservation, or after a
particular type of preservation.
Usually, hides and skins are segregated into predetermined weight categories, the
limits of which are usually a matter of local preferences subject to the demand of
tanners’ requirements. Among cattle hides, for example, it is normal procedure to
have five weight categories: extra lights (calfskins), lights, mediums, heavies and
extra heavies (bull hides). The weight limits on these categories will be determined to
a large extent by the characteristics of the indigenous livestock, with smaller livestock
leading to lower weight categories.
5
Most of this sub-section is derived from ‘Hides and Skins for the Tanning Industry’ FAO, 1995.
Skins
Once hides and skins have been sorted into particular types - such as heavy, wet-
salted, bull hides – they may be segregated further by grading. Grading with respect to
hides and skins means the assessment of quality. But quality, as in fitness-for-use, is
likely to be difficult to determine, at the start of a supply chain taking hides and skins
from a butcher to a tanner. The proposed end-use of the hide or skin may not be
known to the grader. When the objectives of the grading are unclear, the results of
grading are likely to be inaccurate or misleading. Accordingly, rather than
determining quality (fitness-for-use) preliminary grading is essentially a matter of
determining the relative abundance, intensity and nature of defects; particularly those
that might render a hide unsuitable for general use in the manufacture of leather.
According to conventional grading procedures, hides or skins with no defects would

be designated Grade I (perfect) while others with many serious defects would be
designated Grade V (imperfect) or simply discarded. Anything of intermediate quality
would be classified as Grade II, III or IV. The defects that are considered during the
course of grading should include any of those factors that could affect the subsequent
manufacture of leather (Table 14 and Appendix 13).
Besides the actual type of defect, its position is also significant, at least in hides. For
example, defects in the butt are considered more serious than those in the shoulders,
because the butt is normally expected to provide the best physical characteristics.
Conversely, a defect in the belly or shanks would not be considered very serious
because these parts provide softer, weaker leathers, and defective areas here are easily
removed by trimming. A third and final aspect of grading is the intensity of the defect.
For example, a shallow butcher cut on the flesh surface may be dismissed as
unimportant. If however the cut penetrates and perforates the dermis, it would be
considered more serious.
Bearing all these considerations in mind, it is possible to prepare detailed grading

standards that describe various grades according to the type, position and intensity of
defects (Appendix 14). In theory, application of these should be very useful to
tanners, but the grading systems currently used in many countries are of only very
limited use. The first problem with grading is that it is not always done at the same
stage of production. One establishment might grade fresh hides before fleshing while
another might do the job after some period of storage. Inevitably, the first place will
miss any defects attributable to cuts and spoilage (peri- and post-slaughter defects
respectively).
Table 14. Defects of Hides and Skins.

Origin of Defect Type of Defect Example of Defect
Pre-slaughter Intrinsic characteristics Type, breed, sex and age.

Disease Malnutrition, ringworm,
streptothricosis, hyperkeratosis,
dermatitis and warts.
Parasites Warbles, ticks, mites, worms and lice.
Mechanical action Brands and scratches.

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Peri-slaughter Mechanical action Abrasions and bruises.

Improper bleeding Veininess and putrefaction.
Improper ripping Small size and incorrect shape.
Improper flaying Cuts and holes.
Post-slaughter Autolysis Deterioration.
defects
Physico-chemical Deterioration.
degradation
Microbiological effects Putrefaction.
Irrespective of when the grading is done, it is often impossible to see many of the
defects that affect hides and skins, so the results provide little help to tanners. For
example, in an experiment in Zambia (FAO, 1995) a random selection of fresh cattle
hides were graded before and after tanning. The best leathers were designated ‘full
grain’ and the worst ‘rejects. The number of Grade I and Grade IV hides were
insufficient to provide statistically significant results so the results of these were
discarded. The remaining results are presented in Table 15, and indicate very little
difference in the quality of leathers provided by Grade II and Grade III raw materials.
More interestingly, only 10% of the hides rejected as useless by the hide merchant
were also rejected by the tanner; 90% of the hide merchant’s rejects provided
acceptable quality leathers. In fact, 7% of the reject hides provided perfect, full grain
leathers!
Table 15. Raw Material Quality and Leather Quality.
Raw Leather Quality (% number of pieces).

Material Full Grain Corrected Prints. Insoles Rejects.
Quality. Grain. and
Linings.
Grade II 10 2 71 16 1
Grade III 10 10 66 13 1
Reject 7 13 30 40 10
When slaughterhouse staff or hide merchants grade fresh and preserved hides and
skins, their visual assessment of defects is restricted to the hair (fur or wool) and
underlying epidermis on one side, and the hypodermis on the other. Neither of these
parts are considered useful to the tanner, and both are removed during the early stages
of leather manufacture. Only when these two layers are removed, can the tanner see,
for the first time, the dermis. Many of the defects observed by the tanner on the
dermis would not be obvious in the raw material. The few obvious exceptions are
brand marks, severe scratches and pox marks on all hides, and rather more moderate-
intensity defects of translucent, dried hides.
Not only may hide merchants and tanners differ in the defects they can observe on
raw materials and leathers but so too may their assessment of their significance. In the
example referred to previously, most of the ‘Reject’ hides were dismissed by
merchants because of cuts and holes. These are indeed a nuisance for the tanner and
Skins
should be avoided, but hides and skins with holes may still be used to make
acceptable leather. The main problem with such defects is that the final yield is
adversely affected. For example, the yield of leathers referred to in Table 15 was as
follows:- Grade II, 246±45dm2; Grade III, 234±37dm2; and Reject, 220±38dm2 per
piece. The reduced yield of the poorer quality material is an indication of the
trimming that is necessary to remove some defects. So, defects in the raw material
may affect the quantity as well as the quantity of leather produced.
Another point about grading is the traditional practise of downgrading hides and skins
that have been preserved by drying. The common explanation is that dried hides and
skins provide inferior leather. This is sometimes true but not to the extent that many
people believe. In Tanzania, for example, randomly selected samples of small hides
were preserved by salting, others by suspension drying in the shade (FAO,1995). The
quality of leathers produced in a local tannery are shown in Table 16. The results
confirm that where there is no possibility of using alternative procedures, drying may
provide acceptable quality materials for the tanning industry.
Table 16. Quality of Leathers From Salted and Dried Hides.
Preservation Leather Quality (% number of pieces)

Method Grade I Grade II Grade III Grade IV Reject
Salted 14 37 32 16 1
Dried 0 15 39 42 4

Skins
Appendix 12. Identification and Control of Defects Among Skins in Ethiopia6
Background
Ethiopia is the largest country in Eastern and Southern Africa with an area of
1,096,900km2 and a population of about 52 million people in 1993. The county's
livestock resources are among the biggest in Africa, and estimated to amount to 32
million cattle, 24 sheep and 16 million goats. These animals provide draught power,
milk, meat, fibres, fuel and fertiliser - apart from being a source of wealth. They also
provide hides and skins which are partially processed for export, or tanned and
finished in the country's tanning, shoe-making and leathergoods industries. Exports of
pickled sheep skins and wet-blue goat skins are second only to coffee as a source of
foreign exchange and in 1995/67 amounted to US$69.5 million.
During the early 1990s there was an increasing number of complaints about the
quality of the hides and skins available to tanners in the country. The problem
adversely affected all aspects of the industry, but especially the income derived from
exports which declined relative to coffee. The principal cause of the decline in quality
(among sheep skins at least) was reported to be increased levels of ekek - the Amharic
word for a cockle-like defect - characterised by irritation and itching in the live animal
and various types of lesions in the processed skin. Since ‘haired’ Ethiopian sheep
skins have a long-established reputation internationally and constitute the bulk of the
country’s exports of semi-processed leathers by value, the decline in quality was
considered especially serious.
Though the initial losses caused by the ekek were incurred by the tanners themselves,
the consequences ultimately affected many other people including hides and skins
merchants, butchers and farmers. In some of the worst affected parts of the country,
merchants were unable to buy and sell the local sheep skins; and farmers themselves
were disadvantaged with increased morbidity and mortalities among their animals,
and reductions in productivity - of meat, for example.
Objectives
In response to these problems, a FAO-sponsored projects were implemented by the

Government of Ethiopia. The main thrust was to ‘improve the profitability of
smallholder livestock raising through the control of skin diseases, to increase the
production of high quality skins available to tanners and to assist in the development
of markets for skins and leathers’. More specifically, the main activities of this project
were as follows:
Identify the causes of diseases referred to locally as ekek.

Determine appropriate methods to control, or prevent, damage to hides and
skins.
Provide practical methods of monitoring diseases which affect hides and skins.
Devise a national strategy to promote improved utilisation of hides and skins.
6
From, Hides and Skins for Farmers (Publication Pending).
7
Br403.3 million, at Br5.80/US$1.00.
Skins
Establish relevant teaching and training activities for hides and skins
improvement.
The first phase of the two-year project began in October 1995 and was subsequently
extended into a second phase, which ended in February 1998. The second phase was
restricted to resolution of the ekek problems on affected goatskins, which were
unavailable during phase I. The total cost of the project amounted to US$340,000
(US$260,000 Phase I and US$80,000 Phase II).
Procedure
A multidisciplinary team consisting of an economist, pathologist and hides and skins

specialist was lead by a veterinary diagnostician working in collaboration with the
National Project Co-ordinator based at the National Animal Health and Research
Centre in Sabeta. A preliminary examination of the problems associated with hides
and skins production was made by undertaking visits to various parts of the country,
and collecting information and comments from selected individuals and institutions
related to the industry. Despite problems associated with finding hard and reliable
data to confirm the reports of an escalation in the occurrence of ekek, the defect was
widespread; particularly among the sheep skins which form the mainstay of the
country’s exports of semi-processed materials.
In the absence of any firm indication of what was causing the ekek defect, a series of
four field trials was completed at two sites in Ethiopia. These trials incorporated the
use of infested sheep and goats, which had been treated with a range of physical and
chemical interventions. Diazinon (Basudin, Ciba-Geigy) was diluted at the rate of
12.5ml of 60% concentrate in 20 litres of tap water. Amitraz was diluted at the rate of
40g powder in 20 litres of water. The diluted acaricides were then sprayed on the
sheep using a knap-sack sprayer until the sheep were thoroughly wet to the skins.
At various stages during the course of the field trials animals were slaughtered and the
carcases (and more particularly their skins) were subjected examination in the
laboratory at Sebeta, and in a commercial tannery (results provided in Table 17).
During the course of the project the laboratory at Sabeta was supplied with additional
equipment and consumables, and staff were provided with teaching and training
assistance to assist, for example, with histopathological examinations.
Conclusions
The field trials revealed that the principal cause of ekek defect among sheep was
infestations by biting lice (Damalinia ovis) and the sheep ked (Melophagus ovinus).
Both parasites proved sensitive to control by organosphosphate-based pesticides such
as diazinon (for example, Basudin® made by Ciba-Geigy and Ectoban® made by
Kruuse) and amitraz (such as Tactic® made by Hoeschst). The parasites were also
susceptible to control by removal of hair by hand-shearing.

Skins
Table 17. Results of Examinations of Experimentally-Treated Skins in Ethiopia
Table 17a. Lice Counts
Treatment Group Time (days)

0 30 60 90 12
Diazinon 0 0 0 22
Amitraz 1 66 2 17
Shearing 9 68 1 73
Nothing (control) 25 15 16 14 96
Table 17b. Ked Counts

0 30 60 90 12
Diazinon 0 0 0 0
Amitraz 0 0 2 1
Shearing 0 1 1 3
Nothing (control) 25 14 17 27 31
Table 17c. Grade of Semi-Processed Leathers

0 30 60 90 120
Diazinon 3.0 1.2 1.8 1.0
Amitraz 2.3 1.3 2.7 1.2
Shearing 3.3 1.0 3.3 1.7
Nothing (control) 5.5 6.3 4.7 6.2 4.7
Table 17d. Weight Gain

0 30 60 90 120
Diazinon 0.0 3.3 3.8
Amitraz 0.0 2.5 3.9
Shearing 0.0 1.8 4.3
Nothing (control) 0.0 0.9 2.8

Skins
The difference in quality between the sheep skins provided by treated and untreated
animals was dramatic. After partial processing in the tannery sheep skins are normally
graded from 1 to 6; with the first grade being perfect and free of any defects, and the
sixth grade being a reject. The best skins from the untreated sheep of one of the field
trials provided skins that averaged a grade 5.7 (reject). Conversely, all the treated
animals provided skins that averaged at least a grade of 4.2. Accordingly, even the
least effective treatment against ectoparasites provides a one-and-a-half grade
improvement in the quality of the sheep skins.
Semi-processed sheep skins destined for export currently fetch US$4.25 for a Grade
IV and US$2.50 for a Grade V - a difference of US$1.75 per piece. If the results of
the project’s field trials were only applicable to the 1.3 million reject sheep skins (of
1995/6) then a one-grade improvement would generate an extra US$2.3 million in
export earnings. If the results could be applied across the country to all the current
annual production of 11.2 million pieces of skins (and still only achieved a one-grade
improvement) the extra foreign exchange would amount to US$19.6 million. This
figure could be considerably higher since many tanners attach no value to Grade VI
skins, and a one-and-a-half grade improvement is also possible. The most expensive
among the current treatments, exclusive of labour, was US$0.30 (two times Br1.08)
for amitraz, for each animal/skin treated!
Among the goats there was also a considerable amount of skin damage attributable to
sarcoptic mange mites, but this was not contributory to the ekek defect per se. All the
animals receiving some sort of treatment in the FAO field trials exhibited a general
improvement in their overall health, with some treatments providing for reductions in
morbidity and mortalities. The advantages to animal health and productivity generally
(in terms of meat production and fecundity, for example) would reinforce the
economic and financial justification for the control of ectoparasites, and provide the
basis of a strategy for implementing any improvement activities.
In the absence of any real evidence of an escalation of the prevalence of the ekek
defect in recent years in Ethiopia, it seems reasonable to assume that the tanner’s pre-
occupation with the problem may have been prompted by other factors of some
significance to the application of the projects results. For example, there is a massive
over-capacity within the domestic tanning industry, which has generated a scramble
for raw material and an escalation in the price of sheep skins in particular. Inevitably
under such circumstances, lower quality material (that previously went elsewhere)
will be drawn into the local market. Coupled with this there may have been increased
scrutiny of Ethiopia’s production by those countries importing the semi-processed
skins. Additionally, with changes in international markets, what was acceptable in the
past may have become less acceptable in the present. In short, there are many factors
affecting the industry, and people’s perception of defects and hence, quality.
Recommendations
The FAO/GoE project identified the cause of ekek among sheep and goat skins and
determined simple, cheap and effective solutions that worked well in field trials. The
financial benefits to be derived from remedial work were substantial, and more than

Skins
enough to offset the costs of any of the treatments identified. The next step was to
implement the procedures on a larger scale.
Given the seriousness of the losses in foreign exchange attributed to ekek, some
government representatives expressed interest in the immediate establishment of a
national campaign to implement the improvements required. This could take the form
of a compulsory treatment of all sheep and goats in the worst affected areas - all the
highland areas - or across the country. However, even if this were successful in the
short to medium term, it is likely that support for the campaign would begin to wane
as people became used to the new level of quality skins in production.
Irrespective of any national campaign, it was recommended that some, more

sustainable, integrated method of establishing an improvement be sought. In this
respect, it was important to appreciate that while the project identified the practical
solution to the ekek problem it did not necessarily demonstrate how this could be
delivered in-the-field. There are, for example, weaknesses in the MoA’s current
extension services which would preclude any simple quick-fix. Moreover, no
extension package aimed at hides and skins improvement alone is likely to be easy-to-
achieve or fully effective on its own. Since most of the treatments effective on the
skins also provide for significant improvements in animal health and production, it
was recommended that these should be the target (with incentives) for improvements,
with better quality hides and skins coming as an aside – albeit an important one.
Given the various problems likely to effect implementation of any procedures aimed
at by-products derived from farmer production, the best option would be the adoption
of one or more pilot studies in selected areas.

Appendix 13. Classification of Some Defects; and Options for their Control
Origin Category Type Examples Control/Remediation

Pre-Slaughter Intrinsic factors Breed Ribbiness in merino sheep skins; None8.
attributed to weight of fleece causing
wrinkles.
Sex Excessive thickness in bull hides; that None.
provide weak grain splits consisting
mainly of vertically orientated
papillary fibres.
Age Growth marks on hides of old cattle; None.
attributed to age-related wrinkles.
Husbandry Intensive Physical and chemical susceptibility Minor revisions to tanning process.
of skins from fast-growing animals;
attributed to ‘immaturity’ of skin
protein.
Extensive Miscellaneous age-related defects; None.
attributed to slow-growing animals
raised on ranches.
Commercial Chemical residues (hormones, Use of approved medicines only.
pesticides and so on); attributed to
inappropriate prophylactic and
palliative treatments.
Subsistence Miscellaneous defects such as yolk Use of correct, properly fitted
marks; attributed to use of animals harnesses.
for ‘non-commercial’ purposes.
8
None short term and simple.


Pre-Slaughter Diseases Genetic Predominance of vertical collagen None.
fibres in hides from breeds such as
the Hereford.
Viral Lumpy skin disease. Vaccination.
Bacterial Streptothricosis. Antibiotics.
Fungal, Ringworm. Fungicides.
Parasitic Mange. Miscellaneous insecticides (or
acaricides), or phycisal interventions
such as shearing.
Allergies Hyperkeratosis Reduced exposure to allergen.
Physical/mechanical External damage Branding, shearing, cauterisation, Branding in correct location. Use of
scarification, abscesses, harnesses, correct shearing equipment and
goad and so on. techniques. And so on.
Miscellaneous Urine and faeces irritations Proper animal husbandry.
Peri- Slaughter Bleeding Veininess Proper bleeding.
Slaughter
Dressing Ripping Incorrect pattern/shape Adherence to standard cutting lines.
Flay damage Cuts and perforations Use of proper tools and techniques.
Physical/mechanical Handling Abrasion Proper handling of animals and hides
and skins.
Storage Heating Proper storage of hides and skins


Post- Preservation Autolysis Generalised deterioration of hides Minimisation of storage at elevated
Slaughter and skins, attributed to self- temperatures.
destructive components in hides and
skins. Only prevalent in materials
preserved by some physical and
chemical methods (other that drying
and salting).
Drying Miscellaneous defects (over-drying, Use of techniques other than ground
contamination, cracks, abrasions and drying (suspension drying, salting
so on; attributed to use of ground and so on).
(sun) drying.
Case-hardening of hides; attributed to Control of wind speed (draught)
over–drying of surface layers during through drying sheds.
periods of high temperature and low
humidity
Putrefaction; attributed to protracted Preliminary dipping is a disinfectant
drying during periods of low to provide short-term protection until
temperature and high humidity hide or skin is dry.
Salting Putrefaction; attributed to delays in Prompt and proper application of salt.
the initial application of salt.
Putrefaction; attributed to use of Application of sufficient salt.
insufficient salt.
Putrefaction; attributed to activity of Incorporation of auxiliary
salt-tolerant bacteria in salt without bactericides into salt used for
supplementary biocides. preservation.


Post- Staining attributed to use of incorrect Use of correct salt.
Slaughter types of salt.
Storage Pests Reduction in the substance of hides Control of insect and animal pests.
and skins; attributed to infestation by
insects (Dermestes) and rodents (rat).
Moulds Damage attributed to prolonged Use of proper storage facilities, with
storage in damp conditions. fungicides if necessary.
Transportation Abrasion Damage of the grain layer attributed Proper packaging of hides and skins.
to incorrect packaging and handling
of hides and skins.
Contamination and Accumulation of ‘foreign bodies’ of Use of proper storage facilities.
adulteration various sorts.

Skins
Appendix 14. ISO Publications for Hides, Skins, Leathers and Leather Products
ICS field, 59.140.20 (Raw skins, hides and pelts)
ISO 2820:1974 Leather -- Raw hides of cattle and horses -- Method of trim
ISO 2820:1974/ Amd 1:1996
ISO 2821:1974 Leather -- Raw hides of cattle and horses -- Preservation by stack
salting
ISO 2821:1974/ Amd 1:1996
ISO 2822-1:1998 Raw cattle hides and calf skins -- Part 1: Descriptions of defects
ISO 4683-1:1998 Raw sheep skins -- Part 1: Descriptions of defects
ISO 4683-2:1999 Raw sheep skins -- Part 2: Designation and presentation
ISO 7482-1:1998 Raw goat skins -- Part 1: Descriptions of defects
ISO 7482-2:1999 Raw goat skins -- Part 2: Guidelines for grading on the basis of
mass and size
ICS field 59.140.30 (Leather and furs)

ISO 2417:1972 Leather -- Determination of absorption of water
ISO 2418:1972 Leather -- Laboratory samples -- Location and identification
ISO 2419:1972 Leather -- Conditioning of test pieces for physical tests
ISO 2420:1972 Leather -- Determination of apparent density
ISO 2588:1985 Leather -- Sampling -- Number of items for a gross sample
ISO 2589:1972 Leather -- Physical testing -- Measurement of thickness
ISO 3376:1976 Leather -- Determination of tensile strength and elongation
ISO 3377:1975 Leather -- Determination of tearing load
ISO 3378:1975 Leather -- Determination of resistance to grain cracking, and of crack
index
ISO 3379:1976 Leather -- Determination of distension and strength of grain -- Ball
burst test
ISO 3380:1975 Leather -- Determination of shrinkage temperature
ISO 4044:1977 Leather -- Preparation of chemical test samples
ISO 4045:1977 Leather -- Determination of pH
ISO 4047:1977 Leather -- Determination of sulphated total ash and sulphated water-
insoluble ash
ISO 4048:1977 Leather -- Determination of matter soluble in dichloromethane
ISO 5397:1984 Leather -- Determination of nitrogen content and "hide substance" --
Titrimetric method
ISO 5399:1984 Leather -- Determination of water-soluble magnesium salts -- EDTA
titrimetric method
ISO 5400:1984 Leather -- Determination of total silicon content -- Reduced
molybdosilicate spectrometric method
ISO 5431:1999 Leather -- Wet blue goat skins -- Specification
ISO 5432:1999 Leather -- Wet blue sheep skins -- Specification
ISO 5433:1999 Leather -- Bovine wet blue -- Specification
ISO 11640:1993 Leather -- Tests for colour fastness -- Colour fastness to cycles of to-
and-fro rubbing
ISO 11641:1993 Leather -- Tests for colour fastness -- Colour fastness to perspiration
ISO 11642:1993 Leather -- Tests for colour fastness -- Colour fastness to water

Skins
ISO 11643:1993 Leather -- Tests for colour fastness -- Colour fastness of small
samples to dry-cleaning solutions
ISO 11644:1993 Leather -- Test for adhesion of finish
ISO 11645:1993 Leather -- Heat stability of industrial-glove leather
ISO 11646:1993 Leather -- Measurement of area
ISO 15700:1998 Leather -- Tests for colour fastness -- Colour fastness to water
spotting
ISO 15701:1998 Leather -- Tests for colour fastness -- Colour fastness to migration
into elasticised poly(vinyl chloride)
ISO 15702:1998 Leather -- Tests for colour fastness -- Colour fastness to machine
washing
ISO 15703:1998 Leather -- Tests for colour fastness -- Colour fastness to mild
washing
ICS field 61.060 (Footwear Including shoelaces)
ISO 3910:1983 Rubber boots, unlined moulded

ISO 6907:1994 Rubber footwear -- Vulcanised resin rubber and vulcanised high-
hardness rubber soling materials -- Specification
ISO 9407:1991 Shoe sizes -- Mondopoint system of sizing and marking
ISO 9986:1990 Composition cork for shoe outsoles
ISO 10335:1990 Rubber and plastics footwear -- Nomenclature
ISO 18454:2001 Footwear -- Standard atmospheres for conditioning and testing of
footwear and components for footwear
ISO 20866:2001 Footwear -- Test methods for insoles -- Delamination resistance
ISO 20867:2001 Footwear -- Test methods for insoles -- Heel pin holding strength
ISO 20868:2001 Footwear -- Test methods for insoles -- Abrasion resistance
ISO 20869:2001 Footwear -- Test methods for outsoles, insoles, lining and insocks --
Water soluble content
ISO 20870:2001 Footwear -- Ageing conditioning
ISO 20871:2001 Footwear -- Test methods for outsoles -- Abrasion resistance
ISO 20872:2001 Footwear -- Test methods for outsoles -- Tear strength
ISO 20873:2001 Footwear -- Test methods for outsoles -- Dimensional stability
ISO 20874:2001 Footwear -- Test methods for outsoles -- Needle tear strength
ISO 20875:2001 Footwear -- Test methods for outsoles -- Determination of split tear
strength and delamination resistance
ISO 20876:2001 Footwear -- Test methods for insoles -- Resistance to stitch tear
ISO 20877:2001 Footwear -- Test methods for whole shoe -- Thermal insulation

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STUDY 1: MARKET REQUIREMENTS FOR IMPORTERS OF

AFRICAN HIDES AND SKINS

The Hides, Skins and Leather Sector in Africa

REVISED DRAFT REPORT

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Corporate Contract Number CFC/02/12

Table 1. Production and Trade of Hides and Skins in Africa ....................................... 16

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Table 2. Mean Value of Hides and Skins Exported from Africa.................................. 17

Figure 1. Transverse Section of a Typical Hide or Skin (FAO, 1995)......................... 11

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Based on Africa’s production of hides (8% of world total) it would be expected to

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2. BACKGROUND TO THE REVISED DRAFT REPORT

assist African countries to identify actions to meet the quality requirements of

During the collection of primary data (information and advice), semi-structured

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misunderstood and misused in many sectors of economic activity. This is in spite of

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3. HIDES AND SKINS

Figure 1. Transverse Section of a Typical Hide or Skin (FAO, 1995).

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One of the advantages of modern tanning techniques is that processing can be

3.4. Constraints to Leather Production and Processing

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Although a leather of any sort exhibits a variety of properties – including strength,

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4. RESOURCES AND TRADE

4.1. Hides and Skins Production

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4.2. Hides and Skins Trade

Table 1. Production and Trade of Hides and Skins in Africa

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4.3. Value of the Hides and Skins Trade

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5. CONSTRAINTS TO PRODUCTION AND TRADE

5.1. Quantity of Raw Materials Production

Table 3. Livestock Resources and Hides and Skins Production.

Although it would be naïve to suggest that livestock production in Africa could, or

5.2. Quality of Hides and Skins Supplies

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associated with subjectively determined characteristics that are relatively difficult to

Many pre-slaughter defects are accepted (albeit reluctantly) as an inevitable

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5.4. Semi-Processed Materials and Leathers

5.5. Packaging, Transportation and Delivery

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Table 4. Price Differentials Based on Preservation

5.7. Ethical Investment

Though business people in general, and entrepreneurs in particular, are generally

Table 5. Summary of Unethical Activities and Products.

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5.8. Environmental Issues

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6. PROSPECTS FOR PRODUCTION AND TRADE

Consumption of primary livestock products such as meat and milk increased in

Unfortunately, the Livestock Revolution seems not to have affected Sub-Saharan

6.2. Hides and Skins as Commodities