Harare, Zimbabwe (News of the South)-Government is working to create a bovine hides traceability system and implementing a corporate social responsibility system for the Leather Value Chain in Zimbabwe that is aimed at the easy identification of quality hides.
The move will also help in designing quality and marketing improvement interventions for the embattled sector which has shed off more than 80% of its ability.
This Trade and Private Sector Development programme is funded by the European Union and implemented by the International Trade Centre (ITC).
According to information released by ITC’s National Programme Coordinator Bruno van Eeckhout they have already finished stakeholder consultations with, among some, Confederation of Zimbabwean Industries (CZI), ZIMTRADE, the Department of Livestock Production, abattoirs and tanneries in Harare, Gweru and Bulawayo.
“The sector welcomed the traceability initiative sponsored by the EU funded TPSDP program as it will lay the foundation to a system that will contribute to the identification of sources of different quality of hides and skins and consequently assist in designing quality and marketing improvements interventions”.
“In addition the CRS will contribute in profiling the fact that despite the challenges the industry is facing, the industry was more organized with regard to meeting the minimum standards of CSR for example: operating permits; no usage of restricted chemicals; environmental and workers’ rights”.
“Meeting some of these minimum standards is an important marketing tool and also assists in production of quality and reduction to costs of business associated with improved welfare of workers and enhanced productivity”, he said.
The Zimbabwean bovine industry has been struggling for over a decade, since the European Union (EU) banned meat imports from Zimbabwe due to the outbreak of foot-and-mouth.
Neighbouring Botswana also announced that all Zimbabwean cloven-hoofed livestock which crossed into the country would be shot on sight to mitigate the spread of FMD which has however been contained now.
Cold Storage Company (CSC), Zimbabwe’s only exporter of beef once had an annual export quota of 9 100 metric tonnes to the EU and about 5 000 metric tonnes to South Africa.
This has however fallen with the company now operating at less than 10% of its capacity, employing 500 workers from as much as 1 500 in the 1990s.
Trade in hides and skins on the domestic market has been minimal as the price has significantly declined to between $0,50-$0,60/kg.
While the export market is offering competitive prices of $0,70- $0,85/kg, the current $0,75 cents/kg surtax on exported hides effectively acts as an export ban on unprocessed hides.
The Beef Carcass Classification and Grading System has also been reviewed to ensure that it does not discriminate against carcasses from smaller cattle breeds such as the Mashona.
It is envisaged that the new classification system will also be applied to goat and sheep meat classification.
Meanwhile COMESA LLPI and ITC are also linking with the ZAGDP program and with its implementing agency TechnoServe regarding the synergies with the traceability system for livestock.
According to Eeckhout it was observed during consultations that there were challenges with market intelligence with regards to hides and skins price regionally and globally.
“As part of COMESA/LLPI partnership with ITC and the ZLDC, COMESA LLPI has committed to develop a portal which will be displaying hides and skins prices prevailing in all global markets and this platform dummy has already been developed”.
“It is set to run in the next three weeks and this will benefit tanners, hides and merchants and abattoirs as they negotiate on hides and skins trade”, he said.
The availing of these prices prevailing in other markets will reduce challenges which value chain actors are facing in agreeing on suitable prices in Zimbabwe.
These interventions will also be replicated in other COMESA countries in which COMESA/LLPI is working.
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