Without tanneries, Oman losing out on leather industry profits


(MENAFN- Muscat Daily) With no tanneries Oman is losing out on profits from the leather industry. 

Hide dealers feel that having tanneries in the sultanate can link the various sources of supply in the Middle East with leading leather manufacturers and designers worldwide. Oman is a major producer of animal hide but the absence of tanneries forces dealers to send them to UAE from where the hides are exported to buyers across the world.

According to Euromonitor International the value of leather imports and exports across GCC was US$3.9bn in 2013 including semi-finished and finished products travel goods accessories handbags and footwear. The share of UAE was the biggest in GCC with US$2bn followed by Saudi Arabia with US$1.1bn.

More than 14000 animals were slaughtered during Eid al Adha in Muscat Sohar and Dhofar governorates alone.

A senior official from the Central Slaughterhouse in Bausher said 'The skins are supplied to companies according to tenders. These are then exported to be turned into final products. Every month about 12000 sheep and goat and 120-150 cows and camels are slaughtered.'

A Dhofar abattoir official said 'The skins are given to the companies that export to mainly Dubai and Ajman in UAE. There is no tanning trade in Oman yet but a great demand for leather products. Tanning the hides can be profitable for traders.'

Raghunathan accounts manager at Al Batinah Livestock a company dealing in animal hides said 'We send the hides to Dubai from where they are mostly exported to markets like China and Europe to be turned into final products.'

Raghunathan said profits dipped this year due to weak demand from Europe and stiff competition. 'We usually get AED50 for the hide of a small animal. This dropped to AED18 this year and we incurred losses.'

Ahmed K commercial manager for Arabian Livestock that deals with seven slaughterhouses in Oman said 'We have been exporting to UAE but we did not win the contract this year. If we had to estimate the company exports about 4000 to 5000 hides per month; this figure rises by 30 to 40 per cent during Eid. The agent we deal with in Ajman exports mainly to China Syria and Turkey.'

Akram Saiful a middleman who helps companies get contracts and arranges workers for the salting process said 'It's a profitable business for me as there are not many companies (in Oman) that deal with hides. I also supply  hides to a local manufacturer in the interiors. Sheep skin has high demand in Europe while camel skin doesn't get good value. I think Oman can tap the leather industry as the region has a strong demand for leather products.'

Explaining the salting process Raghunathan said 'If left without salting for over ten hours the hides become useless.  The later we salt it the higher the chances are of it getting spoilt or the quality going down. Hides of large animals need two to three kilograms of salt while smaller ones (goats and sheep) need a kilo or less.'

Ahmed K said 'Salt is needed to remove the moisture; the skin contains 70 per cent moisture. Drying it with salt also limits bacteria and helps in easy preservation. The process takes five days to a week.'


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