Bangladesh Leather and Leather goods export

  • View
    682

  • Download
    4

Embed Size (px)

Text of Bangladesh Leather and Leather goods export

Executive Summary:

This report is based on exportation of leather and leather goods. Bangladesh is contributing only 2/3 percent of the total leather among the other country of the world. Bangladesh has the huge potential of export more leather with high quality in the international market. Bangladesh has the cheap labor, huge raw material and other aspect that required for a high quality leather exporting country. Government steps are needed to flourish this sector. In this report we try to focus on current scenario of the leather industry. We also try to find out the prospects and problems for the leather industry. Lastly we suggest some recommendations which can vitalize the industry.

Industry Profiles:The first tannery in Bangladesh territory was set up at Narayanganj by RP Saha sometime in the 1940s. It was later shifted to Hazaribag area of Dhaka, which turned into a location that now accommodates a large number of tannery units. Leather Industry developed in Bangladesh on a large-scale basis from the 1970s. About 95% of leather and leather products of Bangladesh are marketed abroad, mostly in the form of crushed leather, finished leather, leather garments, and footwear. Most leather and leather goods go to Germany, Italy, France, Netherlands, Spain, Russia, Brazil, Japan, China, Singapore and Taiwan. About 100 modern tannery units are now in operation in the industry. These are located mostly in the Hazaribagh area of Dhaka city. In 1998, the sector exported 178 million sq ft of leather and earned $160 million. The countrys share in the world leather market is 2%. The export of finished products such as shoes, slippers, leather jackets, hand gloves, bags, purses, wallets, and belts also earn a sizeable amount of foreign exchange. Bangladesh intends to increase its range of leather products to penetrate new market segments.The country is endowed with luxurious vegetation encouraging a large livestock population. The quality of the raw hide and skin is relatively good, as barbed wire fencing that damage the skins of animals is not used in the natural farms and fields. Black goatskin of kushtia is particularly noted for its finegrain structure and tensile strength. The tradition of humane care of domestic animals also contributes significantly to keeping the leather quality high. About 40% of the supply of hide and skin comes from animals slaughtered during the annual Muslim festival of eid-ul azha. In addition to daily consumption of meat, festivals, Muslim weddings, and other celebrations yield a substantial supply of hide and skin. The tanning industry got a big boost following the government decision to promote more value addition in exports. The installed capacity for crust leather production increased. At present, it is double the domestic supply of raw hide and skin. Investments are also made in installing new finishing capacity. The trends encourage more tanneries to produce finished leather on a commercial basis. The government of Bangladesh provides a support to the leather industry through various steps, including monitoring the export market, evaluating the performance of the sector by a permanent parliamentary committee, and liberal bank credit.During the 1990s, the export market for Bangladeshi leather grew at an average of 10 15% per annum. The average yearly exports accounted for $225 million. Fine grain leather of Bangladesh enjoys preferential demand in Western Europe and Japan. Low wage level and the ban on exporting wet blue leather helped the industry receive a new thrust in the country. Environmental concerns arising out of the high concentration of production units in a small area of the older part of Dhaka city are being addressed with plans for their relocation outside the city.Leather goods producers in Bangladesh tend to be associated only with manufacturing and exporting. They do not have much control over downstream operations. However, the success of a number of Bangladeshi firms in attracting such brand names as Puma, Pivolinos and Hugo Boss to source from this country proves that there is ample scope for the industrys upward mobility.Present Scenario: At present, there are about 170 tannery units in Bangladesh and they use locally available raw hides and skins. Of them 114 are large and medium units (by local standards) and are registered with the Directorate of Industries. Others are mostly of small and cottage type and are not on the register of the government. About 150 tannery units are located at Hazaribag of Dhaka in only 50 acres of land popularly known as tannery estate. According to the records of the Bangladesh Tanners Association, about 3,000 workers are employed in the tanning industry. Besides, there are about 100 qualified technologists including foreign nationals who are working in different tanneries. Total capital invested in the tannery industry is estimated at Tk 2.5 billion, of which government/bank finance is about Tk. 1.2 billion. About 1,500 persons are involved in the process of collecting raw hides and skins and making them available at tannery units. About 100 organisations import chemicals for use in tannery industry.Bangladesh produces approximately 100-150 million sq. feet of raw hides and skins, about 85% of which is exported in crust and finished form. The rest is used for producing leather goods to cater to the domestic market. Leather is a traditional export item of Bangladesh. But export earnings from this sector could not indicate any predictable increase in the past. Since the production and supply of leather depend on the availability of livestock and demand of the meat, the total supply of leather cannot be increased in the short run. Therefore, the only way of increasing earnings from this sector is the production and export of higher value leather products for which international demand is growing. International market for leather is highly fluctuating, hence the earnings from its export. Until 2001, annual export receipts from this sector remained below taka one billion. Some projections suggest that if properly organized, this figure could be raised to Tk 5 billion.

Country wise export data for leather and leather goodsSource for all these data is Export Promotion Bureau

ProductsAmount in US$

Raw hides and skins (other than fur skins) and leather505,535,546.82

Articles of leather, animal gut, harness, travel goods240,082,385.04

Footwear, upper of leather378,539,254.95

2013-2014 Fiscal year total exportRaw hides and skins (other than fur skins) and leather

(Value in US$)

2008-092009-102010-112011-122012-13

AE: UNITED ARAB EMIRATES7757685862546

AR: ARGENTINA15735

AU: AUSTRALIA36030217066422749013652395421

BL: SAINT BARTHLEMY25520862860240345951153809116460046

BN: BRUNEI DARUSSALAM24258204286

BR: BRAZIL16310

BW: BOTSWANA17400

CA: CANADA7886356146737021

CH: SWITZERLAND324568029

CM: CAMEROON72648

CN: CHINA96226469859950136475802223090130393826

CZ: CZECH REPUBLIC182219765381924093020605

DE: GERMANY16748451356637318904827182542602461

ES: SPAIN51148937814488140449781471254514172117

FR: FRANCE861193455096466328448096464559

GB: UNITED KINGDOM9485731153071159589417690811712136

GR: GREECE4109455001292238

HK: HONG KONG6135693586567266116997409117188422149932911

HR: CROATIA15252

HU: HUNGARY49217302208520841

ID: INDONESIA177661309453332877432801944420

IN: INDIA698297611366916963149247772256218182

IR: IRAN, ISLAMIC REPUBLIC OF41640

IT: ITALY2993090633052406386729144450370454702197

JP: JAPAN1477428416523830181116262024502620795882

KH: CAMBODIA599755330557106916419571453375

KR: KOREA, REPUBLIC OF2959214838929736546322487353826675822293

KW: KUWAIT3182

LA: LAO PEOPLES DP6043

LB: LEBANON197516003

LK: SRI LANKA94045913740264

LU: LUXEMBOURG22078

MM: MYANMAR7125194139853694859548953

MO: MACAO18960

MU: MAURITIUS433245452587

MX: MEXICO12276084954055167624438587641

MY: MALAYSIA17205191646124521414530486

NG: NIGERIA53204822

NL: NETHERLANDS10131243686992775614302

NO: NORWAY371094251150621

NZ: NEW ZEALAND3293

OM: OMAN2254

PH: PHILIPPINES1805120657576458543005914915

PK: PAKISTAN18958116334024339798718561

PL: POLAND895673280892128606813585634013324

PT: PORTUGAL5506088490584031643241223271

RO: ROMANIA142877802

RU: RUSSIAN FEDERATION2028745734239414

SA: SAUDI ARABIA6564419627067722

SE: SWEDEN34044119475

SG: SINGAPORE5326647276287859178229205094

SL: SIERRA LEONE8038

SR: SURINAME9198

TG: TOGO15857

TH: THAILAND623629383792435847377543349587

TR: TURKEY6772063479256200715320606162691739

TU: !!! Not Defined17523

TW: TAIWAN, PROVINCE OF CHINA372011052047407981635698402112686239

UK: !!! Not Defined41521272739459717413

US: UNITED STATES292830240608231000390179688836

VE: VENEZUELA, BOLIVARIAN REPUBLIC OF201721819733

VN: VIET NAM515768741028527332153958790412147111

VR: !!! Not Defined2854716320

ZA: SOUTH AFRICA45681321231441623022056258

Total178199731226102289297826057387376808399726733

Articles of leather, animal gut, harness, travel goods

(Value in US$)

2008-092009-102010-112011-122012-13

AE: UNITED ARAB EMIRATES227016851114081043441863

AT: AUSTRIA1729212652652315468

AU: AUSTRALIA62579684162339133273504213

BE: BELGIUM532618111899523034535909896

BL: SAINT BARTHLEMY3727857773931164763797338280562

BN: BRUNEI DARUSSALAM204

BR: BRAZIL7445

BT: BHUTAN612711868

CA: CANADA6143731572343032954573