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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.
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