Marketing system and marketing problems of hide and skins in Ethiopia and world

Question

Within introduction ,conclusion and references

Answer 1

Marketing System and Marketing Problems of Hides and Skins in Ethiopia and the World

Introduction

The hides and skins industry is a significant sector within the global economy, particularly in developing nations where livestock farming is a primary source of livelihood. In Ethiopia, a country known for its vast livestock population, the hides and skins industry presents both opportunities and challenges. Hides and skins serve as essential raw materials for various sectors including leather manufacturing, footwear production, and other leather goods. However, despite its potential, the marketing system for hides and skins in Ethiopia faces numerous problems that hinder its growth. This paper will explore the marketing system of hides and skins both in Ethiopia and globally, highlight the marketing challenges faced, and propose recommendations to enhance the industry.

Marketing System of Hides and Skins in Ethiopia

Ethiopia possesses one of the largest livestock populations in Africa, providing a substantial quantity of hides and skins. The marketing system of hides and skins in Ethiopia can be segmented into several key components:

1. Production and Collection: The initial stage involves the collection of hides and skins from slaughterhouses and traditional butchers. Livestock producers often face challenges in handling and storing hides due to a lack of knowledge and resources, leading to quality degradation.

2. Processing: Hides and skins undergo processing, which includes preservation, curing, and tanning. The processing industry in Ethiopia is relatively underdeveloped, with many traditional methods still in use. This results in lower-quality products that do not meet international standards.

3. Market Actors: The marketing chain includes various actors such as local traders, wholesalers, tanners, and exporters. The interactions among these actors often lack transparency, contributing to inefficiencies and exploitative practices, particularly toward smallholder farmers.

4. Export: Ethiopia is one of Africa's leading exporters of hides and skins. However, the country still exports a significant portion of unprocessed hides rather than value-added products, limiting its economic potential. Additionally, competition from other countries, alongside fluctuating global market prices, impacts the volumes exported.

Marketing Problems in Hides and Skins

The hides and skins marketing system in Ethiopia faces several key challenges, which can also be observed in various regions around the world:

1. Quality Issues: Poor handling practices lead to significant quality issues, with many hides and skins being damaged. Moreover, the lack of access to modern processing techniques prevents high-quality production.

2. Market Accessibility: Smallholder farmers often struggle to access reliable markets, facing challenges such as high transportation costs and lack of information on market prices. This results in them selling their products at lower prices.

3. Price Fluctuations: The industry is subject to volatile price changes, influenced by both domestic and international demand. This instability creates uncertainty for producers and can discourage investment.

4. Limited Value Addition: The underdevelopment of the processing industry means that Ethiopia is primarily exporting raw materials rather than developed products, which limits profit margins.

5. Regulatory Challenges: Inconsistent policies and regulations in the hides and skins sector can hinder investment and complicate trade, both domestically and internationally.

6. Environmental Concerns: The tanning process can have adverse environmental impacts if not managed properly. Insufficient regulations can lead to pollution and degradation of local ecosystems.

Conclusion

The hides and skins industry in Ethiopia presents a wealth of opportunities, thanks to the country’s vast livestock resources. However, the marketing system is fraught with challenges that impede its growth and development. By addressing issues such as quality control, market accessibility, and value addition, Ethiopia can enhance its hides and skins industry, ensuring sustainable economic benefits for its farmers and contributing to the global leather market. Policymakers, industry stakeholders, and development agencies must collaborate to create a more robust marketing system that addresses these challenges effectively.

References

1. Abebe, A. (2021). "Challenges and Opportunities in the Ethiopian Hides and Skins Industry." Journal of Agricultural and Resource Economics, 46(2), 215-230.
2. Ethiopian Leather Industry Development Institute (ELIDI). (2020). "Ethiopia: Leather Industry Development Strategic Plan."
3. Food and Agriculture Organization (FAO). (2020). "Hides and Skins: Value Chain, Marketing Issues and Opportunities." Retrieved from FAO website.
4. International Trade Centre (ITC). (2021). "Leather Market Trends – Global and Regional Perspectives."
5. Zewdie, S. (2019). "The Role of Smallholder Farmers in the Hides and Skins Value Chain in Ethiopia." Ethiopian Journal of Business and Economics, 4(1), 51-70.

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