Finished leather export drops by 20-25pc in three months

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Naim-Ul-KarimbrThe country’s finished leather export dropped by 20-25 per cent in the past three months as economic slowdown in Europe and the USA hit sales of local leather goods in that part of the world, industry sources said on Friday.brSector insiders said prices of finished leather due to poor demand of leather goods in European and the US markets have also declined by at least 15-20 per cent in global market causing to around 40-50 per cent price fall of hides and skin in domestic market.brBangladesh Finished Leather, Leather Goods, Footwear Exporters Association (BFLLGFEA) said leather export dropped drastically as demand of leather manufactured goods mainly in USA and five other European countries including Italy, Spain, Portugal, Germany and France declined.br“We think that finished leather exports dropped by 20-25 per cent in the past three months compared to that in the same period of the last year,” Tipu Sultan, president of the association told the FE on Friday.brDuring the same period, he further said “Export prices of finished leather also declined by around 15-20 per cent.” brMr. Sultan said finished leather export to China, Vietnam, Hong Kong and Taiwan also came under hit as the regional countries are placing lower number of orders.br“USA and European market are key destination of leather goods of China, Vietnam, Hong Kong and Taiwan. The South East Asian countries cut production recently to some extent as their export to Europe and America declined.”brHe said price fall of finished leather in global market will create an adverse impact on the emerging tannery industry of the country which employs nearly 25,000 manpower at around a hundred factory side by side casting impact on export earning.brThe country’s earning from export of finished leather stood at around $284 million in the outgoing fiscal 2007-08 year, up by 6.89 growth over that in the same period of the last fiscal.brThough export marked single digit growth but fell short of target by around 4 per cent in the outgoing fiscal year.br“We could achieve target unless the sector’s growth would come under a hit with price fall in global market,” Mr Tipu said.brPrice fall of finished leather in global market has reduced value of hides and skin in domestic market contributing to the price hike of beef and mutton in the local market, he added.br“At least 40-50 price fall of hides and skin in domestic market has contributed immensely to the price hike of beef and mutton at the retail level,” Hafez Abdul Baten, a trader in the city’s Shewrapara kitchen market said.brBeef and mutton were selling at Tk 190-Tk 120 per kg and Tk 320-Tk 350 per kg respectively against Tk170-Tk180 per kg and Tk300-Tk330 around two to three month ago.