ABOUT OUR
ASSOCIATION

The New Zealand Tanners Association is an incorporated society under the Incorporated Societies Act of 1908.

Membership is open to those persons or companies engaged in New Zealand in the tanning of hides or skins.

The Association's objective is to work to promote and advance generally the interests and welfare of the tanning industry in New Zealand and to keep its membership in pace with competitive markets and changing consumer tastes.

INDUSTRY BACKGROUND

New Zealand has just 3.7 million people though farmed animals include more than 46 million sheep and 9 million cattle as well as about 2 million deer and goats.

Because only a small proportion is required for domestic consumption, most animals are raised to supply export industries based on wool, dairy products and meat. As a result each year the nations meat processors produce 2.2 million cattle hides and calf skins, 5 million sheep skins and 26 million lamb skins. The number of deer and goat skins available is still relatively small but continues to increase each year. With such quantities of raw hides and skins available New Zealand is well known in the international tanning industry as a major supplier.

However, now the New Zealand tanning industry is establishing its own pre-eminence as a supplier to the international market of semi processed and finished leathers and wool skins.

The industry is confident that exports of finished leather and skins will continue to grow based on its continued efforts to upgrade facilities and to innovate new products.

The tanning industry in New Zealand is currently among the fastest growing industry sectors in New Zealand. The industry is rapidly making the transition from an exporter of raw and semi processed hides and skins to becoming a significant exporter of finished leather, wool skins and wool skin products.

NEW ZEALAND TANNING COMES OF AGE

A most positive aspect of the growth achieved by the sector is that it has occurred in the absence of any government incentive. The government has of course put considerable effort into reforming the economy, and this has created an environment allowing sector to focus more on productivity improvement, quality enhancement and customer service.

The industry is also seeing much greater processing of pelts to wet blue and crust rather than export as pickled pelts. This is in the interest of international customers since New Zealand tanners are better placed to provide feedback to farmers and meat processors on pelt and hide quality.


Exports of finished bovine (cow hides) leathers have also increased dramatically. Spurred on by a shrinking domestic market, New Zealand's bovine (cow hides) tanners have cut costs and secured markets for footwear and upholstery leathers in the Pacific Rim countries. Light leather tanners (lamb and sheepskins) on the other hand have developed the quality of their product to such an extent that they are competitive with any in the world.

In the wool skin area, New Zealand's tanners hold a pre-eminent position as volume suppliers of the highest quality wool skins and wool skin consumer products.

A PIVOTAL POSITION IN WORLD TRADE

In the past, with 40% share of internationally traded sheep and lamb skins, New Zealand has held the position of the world's number one supplier of pickled pelts. Exports of wet blue bovine hides have also been a major export earner with a peak of $170 million in the late 1990's.

Nevertheless, the volumes of hides traded have by virtue of the relatively low cattle population have been low in numbers but high in quality. Total exports of bovine (cow hides), leather (wet blue and finished) comprised more than 50% of exports by New Zealand tanners. The bovine (cow hides) sector account for one third of export receipts in the broader raw hides and skins and leather sector.

In the past hides and pelts were a minor bi-product of the New Zealand meat, dairy and wool industries. Wool exports alone in the 1950's accounted for 40% of New Zealand's export earnings with wool, meat and dairy products comprising nearly 90% of total export earnings.

The position is now very different in the year 2000. By 2000 wool exports slipped to $800 million, only 3% of export receipts while exports of hides, skins and leather were worth $611 million 2.3% of the total export receipts.

IMPROVING THE RETURNS

Training for industry is co-ordinated through a unique arrangement at LASRA, the Leather & Shoe Research Association. LASRA has a major role in fellmongery and tanning research. In servicing both sectors, LASRA has a key role in the development of the industry's quality and enhancement strategy and is pushing through crucial parts of the programme.

Aiming particularly at niche markets in the "top quality, top value" segment of the international leather trade, New Zealand seeks an even higher reputation for its hides, skins, semi processed leathers and finished goods amongst manufacturers and other end users in many other countries.