Historic Background

�  Tanning is one of the oldest professions for humans as it started with the darn of humanity, it was used in both clothing and housing

Historic Background

�  The need for better quality invented the need for better preservation which lead to the invention of vegetable tanning tanning and the introduction of supporting tools to increase the quality and the life of the products

Historic Background

�  During the past century, t h e t a n n i n g i n d u s t r y d e v e l o p e d f r o m t h e vegetable tanning to the metallic tanning (chrome t a n n i n g ) w h e r e n e w chemicals and machines had been introduced in the industry

Historic Background

�  Today and with more a w a r e n e s s t o t h e e n v i r o n m e n t a n d i t s importance to our life on earth, new researches are d e v e l o p i n g i n m o r e advanced technologies which are environmentally friendly in both processing and waist treatment

Historic Background

�  In Sudan the Sector started in the beginning of last century and it was mainly as trading

�  Later in the 1950’s the government opened it’s own tannery (Khartoum Tannery)

�  During the 70’s the government developed it’s infrastructure in the sector by opening two other tanneries (White Nile and Gezira)

�  It was till the late 70’s and early 80’s when the privet sector started to have substantial investments in the sector (Salim tannery and Afrotan Tannery)

�  In the beginning of the 90’s the government had a vision of

“eating from what we grow and wearing from what we produce”

�  For materializing this vision it stopped the export of raw hides and skins and during that time the number of tanneries rose from 5 to 23

�  In the beginning of this century, and with the formation of the WTO, the government had to back up from any band of trade to join and had to back up from the band of export of raw

Industry

�  Size

�  Stake Holders

�  Analysis

Industry

Trade  

Exports   40 M  

Imports   75 M  

Institutions   Ministry of Trade  

Sudan Trade point  

Hides & Skins Exporters Division – Exporters Chamber  

Industry

Industry  

Tanneries   27 tanneries, working 8 tanneries  

Institutions   Ministry of Industry  

Leather & Leather Goods Technology Incubator  

Karary Vocational Training Center  

Leather and Footwear Chamber  

National Leather Technology Center  

Shoe factories   15 Big , 2 working  

600 workshops, 300 working  

Industry

Legislation  

Polices   Government is looking at the sector as one of the potential promising export sectors that can help in development of hard currency resources  

Issues   High Levies on trade  

Nigerians attack for use of cow hides as a nutritional substitute  

Law & Regulation   15% Export tax on raw export  

Hides & Skins Law (not yet approved)  

Sudanese Metrology Standards for Hides and Skins  

Institutions   Council of Ministers  

Ministry of State Governance  

Industry

RAW  

Heard   28 M Bovine  

56 M Sheep  

43 M Goat  

OFF-Take   8.4 M Bovine  

25.7 M Sheep  

19.2 Goat  

Hides & skins   2.7 M Cow hides  

10 M Sheep skins  

9.8 M Goat skins  Institutions   Ministry of Animal Resources  

Hides and Skins development Center  

Industry

Category  

BOVINE   SHEEP   GOAT  

Livestock Number (Million)  

Share of global herd  

Off-take rate  

Numerical Output

(Million)  

Livestock Number (Million)  

Share of global herd  

Off-take rate  

Numerical Output

(Million)  

Livestock Number (Million)  

Share of global herd  

Off-take rate  

Numerical Output

(Million)  

World   1,632.90   100%   0.2175   355.2   1,088.90   100%   49%   531.5   914   100%   52%   475.8  

Africa   284.6   17%   0.1472   41.9   316.2   29%   36%   115.2   320.4   35%   35%   111.6  

Sudan   28   2%   0.3   8.4   56.2   5%   46%   25.7   43.4   5%   44%   19.2  

Sudan Animal Population & Its contribution to World Animal Population

Live  Stock  (Million  $)   28000   8430   3255    39,685    

Meat  Produc?on  (Million  $)   8400   3855   1440    13,695    

Industry

Average   2,670   10,199   9,828   733  

Value  Es?mate  (1000  $)   26700   30597   14741.5   1100   73138.5  

Data Source   Bovine   Sheep   Goats   Camel  

Ministry of Animal Resource   3,510   13,497   13,483   200  

Leather Chamber(Tanneries)   1,800   8,000   7,000   2,000  

F.A.O.   2,700   9,100   9,000   N.A.  

Hides & Skins Production Estimates

Stake Holders

�  Pastorals

�  Butchers

�  Collectors

�  Traders

�  Tanneries

�  Leather Manufacturers

�  Governments (Veterinary Authorities, Trade Authorities, Local Authorities, Industrial Authorities, Financial Authorities)

�  Local Societies

�  Consumers

Value Chain

The sector value chain consists of the following chains:

�  Pasturing

�  Slaughtering

�  Tanning

�  Leather goods production

Value Chain

Stage  Industry Components  

Inputs   Outputs  

Live Animal  

Raw   Cow, sheep, goat, camel   Products   Animal ready for slaughtering   HR   Husbandry, Vets   Bi-products   Milk   Technology   Breeding, feeding           Infrasturcture   Vet. Services          

Slaughtering  

Raw   Animals ready for slaughtering   Products   Meat  

HR   Slaughterer, vets,   Bi-products   hides and skins, intestines, biogas, fertilizers  

Technology   Sluaghtering, cooling, manufacturing (cuts), preservation  

       

Infrasturcture   Slaughtering, freezing, chilling, transporting  

       

Tanning  

Raw   hides and skins   Products   wet-blue hides and skins, crust, finished leather  

HR   Tanners, techitians, managers, adminstration staff  

Bi-products   raw material for gelatin, leather boards  

Technology   Tanning, finishing           Infrasturcture   Tanneries, water treatment, supplies          

Leather goods production  

Raw    Finished leather, accessories, components  

 Products    Shoes, leather products  

HR    Shoe makers, designers, skilled labor, managers  

 Bi-products      

Technology    Manufacturing, designing,           Infrasturcture    Factories, workshops,          

Chain Analysis

Stage  Internal Analysis  

Resources   Values   Expectations  S   W   S   W   S   W  

Live Animal  

Raw   Avilable   Quality issues       Branding animals is a cultural issue  

Government is starting to focuse on the sector as one of the export oriented sector after the loss of the petrol renenwes  

   

HR   Avilable   Week, not trained       The Pasturals are mostly illitrate  

       

Technology       The government dosen't have extended vet services  

               

Infrasturcture       Needed Infrastructure is not available in pastoral areas  

               

Slaughtering  

Raw   Avilable   Quality issues           Government is starting to focuse on the sector as one of the export oriented sector after the loss of the petrol renenwes  

   

HR   Avilable   Week, not trained   The Islamic slaughtering gives better quality of end products due to the intensive bleeding  

The week knowledge about the flaying effect on quality is causing a very big damage in the resource value  

       

Technology  

Avilable   week, need update  

The case de-skinning of sheep and goat gives better quality in skins from flesh side              

Infrasturcture   Avilable   week, need update                  

Tanning  

Raw   Avilable   need improvement in slaughtering, preservation, collection and transportation  

        Government is starting to focuse on the sector as one of the export oriented sector after the loss of the petrol renenwes  

   

HR   Avilable   Week, need training                  Technology   Avilable   not up-to-date                  Infrasturcture   Avilable   need more investment                  

Leather goods production  

Raw  

Avilable   need improvement in slaughtering, preservation, collection and transportation  

        Government is starting to focuse on the sector as one of the import substitutes sector after the loss of the petrol renenwes  

   

HR   Avilable   Week, need training                  

Technology  

Avilable   not up-to-date   The traditional shoes (Markoub) is one of the biggest products in this market  

           

Infrasturcture   Avilable   need more investment                  

Chain Analysis

External Analysis  

Stage  Political   Economical   Social   Technological   Environmental   Legal  

O   T   O   T   O   T   O   T   O   T   O   T  

Live Animal  

Problems in Petroleum sector with the South  

Fighting in Darfur   Avilabiltiy of Livestock  

High taxation and levies  

Environmanal Foot print  

Political Instability  Need for hard currency resources  

Absence of infrastructures for the sector  

week financing resources  

Slaughtering  

week financing resources  

International Environmental regulations  

absence of infrastructure for the industry  

High taxation and levies  

Hides and skins improvement law not in effect  

Tanning  

Avilability of raw material  

Absence of infrastructures  

Branding   Case de-skinning for sheep and goat  

International Environmental regulations  

Labour Law  

Need for hard currency resources  

week financing resources  

Good quality of leather fiber  

Bad flaying for cow hides  

Absence of infratructure for the indusrty  

High taxation and levies  

Leather goods production  

Need for import substitution  

Week financing resources  

Avilability of raw material  

Bad quality of tanning due to old technology  

Labor Law  

Absence of infrasturctures for the industry  High taxation and levies  

Chain Analysis

SWOT Analysis  Strengths   Weekness   Opportunities   Threats  

Avilabiiity of resources (Raw material & Human resources)  

Training   Defecet in hard currancy   Finance  

Avilability of local market   Technology used   Increasing human consumption  

Increased Environmental awareness  

Avilability of international markets   Absence of supporting

services  

    Cost of production  

    Quality control       Internal Conflicts & war  

    International and regional competition  

        Legislations (Labor law + Hides & Skins law)  

            Absence of infrastructure