The hike follows a 25% increase by the Hides Collectors Association last May.
“I think there is need for the government to regulate the prices of raw hides. The prices which the suppliers are asking are making it virtually impossible for the local industry to be viable. The suppliers cannot continue to hike their products willy nilly,” said Fernando Bruce, who runs a shoe factory in the city. He also urged the government to curb the smuggling of raw hides outside the country, which he said was on the increase.
Bruce said the situation had been worsened by stiff competition from cheap imported imitation leather products, especially from the Far East.
A leather craftsman, Salani Moyo, who runs a bag, belt, shoe and pouch making shop in the city said his association would meet HCA executive members soon to seek a lasting solution to the impasse.
“Raw hides are the core raw material for the footwear industry. During the meeting, we will present our concerns to HCA and hear their challenges as well,” he said. Moyo warned that if an agreement is not reached, most companies might be forced to close down or retrench
Industry suppliers also complained about the shortage of wild animal hides.
“Most abattoirs are exporting the hides. The other problem is that most game abattoirs where we used to get hides have all closed down following the land redistribution programme,” said one processor.
In 2003, the SADC council of ministers of Trade and Industry designated the leather industry as one of eight strategic growth sectors for Zimbabwe. At its peak, the sector employed more than 12,000 people, but that has dwindled to less than 3,000 today.
Post published in: Business