The Ethiopian Industrial Inputs Development Enterprise (EIIDE) disclosed that it has finished preparing to buy raw hides and skins at a better price from collectors in relation to the Easter festivity.
The public enterprise established two years ago by absorbing the Merchandise Wholesale Import and Trade Enterprise (MWITE) said that that it has spoken with the hide and skin association and Leather Development Industry about the collection price from households.
Daniel Desalegn, Public Relation Head of EIIDE, told Capital that raw hide and skin collectors have to pay from 35 to 40 birr per piece to the household suppliers.
Estimations indicated that in relation to the Easter holiday, which is the end of almost a two month fasting season, over one million goats, half a million sheep and a quarter million cows will be killed.
EIIDE said that it will buy the product at a better price from collectors.
Daniel said that at a minimum the enterprise will buy five percent of the raw product. “But we have the capacity and capital to collect more than the stated percentage if the suppliers or collectors are able to provide,” he added.
Other tanneries will also buy the raw material from collectors for their production.
Currently ELLDE has a contract with three tanneries to process raw hides and skins to a crust level.
“We use Blue Nile Tannery located at Alem Gena, Sheba Tannery at Mekele and Hafde Leather Tannery at Sebeta town to process the raw input,” he explained.
Until local factories buy the product the enterprise keeps the processed hides and skins at its warehouse at Ferensay Legasion, northern Addis Ababa, assuming the quality is adequate.
Experts said that the demand of leather on the international markets declined causing the price to go down.
Financial constraint, lack of ample storage spaces, the reduction of the international market, and fewer private tanneries caused the collection of raw hides and skins to decrease as well. Experts said that the price of hides went down to five birr last Christmas and on the Ethiopian New Year, which are the major periods for collecting hides and skins. A few years ago the price of sheep hides went up to 150 birr, and the average price was 50 birr.
Since the price went down EIIDE got involved in the market to get a better price and to stimulate the market and pay better price. In the past Christmas it allocated millions of birr to collect the raw material.
The public relations head said that this holiday, it will amass a big volume of hides and skins from suppliers mainly from the capital city and vicinity.
In a related development the enterprise opened its center at Merkato.
Daniel said that the center will provide processed leather for small scale leather product manufacturers.
EIIDE formed in December 2016. It mainly supplies material for leather and textile manufactures.