This is a value chain analysis for the Sudanese leather sector that was requested from me by the University of Khartoum - Faculty of Veterinary Sciences on its 75 juvenile

2. Historic Background
— Tanning is one of the oldest
professions for humans as
it started with the darn of
humanity, it was used in
both clothing and housing

3. Historic Background
— The need for better quality
invented the need for better
preservation which lead to
the invention of vegetable
tanning tanning and the
introduction of supporting
tools to increase the quality
and the life of the products

4. Historic Background
— During the past century,
the tanning industry
d e v e l o p e d f r om t h e
vegetable tanning to the
metallic tanning (chrome
t a n n i n g ) wh e r e n e w
chemicals and machines
had been introduced in the
industry

5. Historic Background
— Today and with more
a w a r e n e s s t o t h e
environment and i t s
importance to our life on
earth, new researches are
d e v e l o p i n g i n mo r e
advanced technologies
which are environmentally
friendly in both processing
and waist treatment

6. Historic Background
— In Sudan the Sector started in the beginning of last century and it was mainly as trading
— Later in the 1950’s the government opened it’s own tannery (Khartoum Tannery)
— During the 70’s the government developed it’s infrastructure in the sector by opening two other
tanneries (White Nile and Gezira)
— It was till the late 70’s and early 80’s when the privet sector started to have substantial
investments in the sector (Salim tannery and Afrotan Tannery)
— In the beginning of the 90’s the government had a vision of
“eating from what we grow and wearing from what we produce”
— For materializing this vision it stopped the export of raw hides and skins and during that time
the number of tanneries rose from 5 to 23
— In the beginning of this century, and with the formation of the WTO, the government had to back
up from any band of trade to join and had to back up from the band of export of raw

7. Industry
— Size
— Stake Holders
— Analysis

8. Industry
Trade
Exports
40 M
Imports
75 M
Institutions
Ministry of Trade
Sudan Trade point
Hides & Skins Exporters Division – Exporters Chamber

9. Industry
Industry
Tanneries
27 tanneries, working 8 tanneries
Institutions
Ministry of Industry
Leather & Leather Goods Technology Incubator
Karary Vocational Training Center
Leather and Footwear Chamber
National Leather Technology Center
Shoe factories
15 Big , 2 working
600 workshops, 300 working

10. Industry
Legislation
Polices
Government is looking at the sector as one of the potential promising export
sectors that can help in development of hard currency resources
Issues
High Levies on trade
Nigerians attack for use of cow hides as a nutritional substitute
Law & Regulation
15% Export tax on raw export
Hides & Skins Law (not yet approved)
Sudanese Metrology Standards for Hides and Skins
Institutions
Council of Ministers
Ministry of State Governance

11. Industry
RAW
Heard
28 M Bovine
56 M Sheep
43 M Goat
OFF-Take
8.4 M Bovine
25.7 M Sheep
19.2 Goat
Hides & skins
2.7 M Cow hides
10 M Sheep skins
9.8 M Goat skins
Institutions
Ministry of Animal Resources
Hides and Skins development Center

12. Industry
Category
BOVINE
SHEEP
GOAT
Livestock
Number
(Million)
Share of
global
herd
Off-take
rate
Numerical
Output
(Million)
Livestock
Number
(Million)
Share of
global
herd
Off-take
rate
Numerical
Output
(Million)
Livestock
Number
(Million)
Share of
global
herd
Off-take
rate
Numerical
Output
(Million)
World
1,632.90
100%
0.2175
355.2
1,088.90
100%
49%
531.5
914
100%
52%
475.8
Africa
284.6
17%
0.1472
41.9
316.2
29%
36%
115.2
320.4
35%
35%
111.6
Sudan
28
2%
0.3
8.4
56.2
5%
46%
25.7
43.4
5%
44%
19.2
Live
Stock
(Million
$)
28000
8430
3255
39,685
Meat
Produc?on
(Million
$)
8400
3855
1440
13,695
Sudan Animal Population & Its contribution to World Animal Population

13. Industry
Ministry of Animal Resource
3,510
13,497
13,483
200
Leather Chamber(Tanneries)
1,800
8,000
7,000
2,000
F.A.O.
2,700
9,100
9,000
N.A.
Average
Data Source
Bovine
Sheep
Goats
Camel
2,670
10,199
9,828
733
Value
Es?mate
(1000
$)
26700
30597
14741.5
1100
73138.5
Hides & Skins Production Estimates

14. Stake Holders
— Pastorals
— Butchers
— Collectors
— Traders
— Tanneries
— Leather Manufacturers
— Governments (Veterinary Authorities, Trade Authorities, Local Authorities,
Industrial Authorities, Financial Authorities)
— Local Societies
— Consumers

15. Value Chain
The sector value chain consists of the following chains:
— Pasturing
— Slaughtering
— Tanning
— Leather goods production

16. Value Chain
Stage
Industry Components
Inputs
Outputs
Live Animal
Raw
Cow, sheep, goat, camel
Products
Animal ready for slaughtering
HR
Husbandry, Vets
Bi-products
Milk
Technology
Breeding, feeding
Infrasturcture
Vet. Services
Slaughtering
Raw
Animals ready for slaughtering
Products
Meat
HR
Slaughterer, vets,
Bi-products
hides and skins, intestines, biogas,
fertilizers
Technology
Sluaghtering, cooling, manufacturing
(cuts), preservation
Infrasturcture
Slaughtering, freezing, chilling,
transporting
Tanning
Raw
hides and skins
Products
wet-blue hides and skins, crust,
finished leather
HR
Tanners, techitians, managers,
adminstration staff
Bi-products
raw material for gelatin, leather
boards
Technology
Tanning, finishing
Infrasturcture
Tanneries, water treatment, supplies
Leather goods
production
Raw
Finished leather, accessories,
components
Products
Shoes, leather products
HR
Shoe makers, designers, skilled labor,
managers
Bi-products
Technology
Manufacturing, designing,
Infrasturcture
Factories, workshops,

17. Chain Analysis
Stage
Internal Analysis
Resources
Values
Expectations
S
W
S
W
S
W
Live Animal
Raw
Avilable
Quality issues
Branding animals is a
cultural issue
Government is starting to
focuse on the sector as one of
the export oriented sector
after the loss of the petrol
renenwes
HR
Avilable
Week, not trained
The Pasturals are mostly
illitrate
Technology
The government dosen't
have extended vet services
Infrasturcture
Needed Infrastructure is not
available in pastoral areas
Slaughtering
Raw
Avilable
Quality issues
Government is starting to
focuse on the sector as one of
the export oriented sector
after the loss of the petrol
renenwes
HR
Avilable
Week, not trained
The Islamic slaughtering
gives better quality of end
products due to the intensive
bleeding
The week knowledge about
the flaying effect on quality
is causing a very big damage
in the resource value
Technology
Avilable
week, need update
The case de-skinning of
sheep and goat gives better
quality in skins from flesh
side
Infrasturcture
Avilable
week, need update
Tanning
Raw
Avilable
need improvement in
slaughtering, preservation,
collection and transportation
Government is starting to
focuse on the sector as one of
the export oriented sector
after the loss of the petrol
renenwes
HR
Avilable
Week, need training
Technology
Avilable
not up-to-date
Infrasturcture
Avilable
need more investment
Leather goods
production
Raw
Avilable
need improvement in
slaughtering, preservation,
collection and transportation
Government is starting to
focuse on the sector as one of
the import substitutes sector
after the loss of the petrol
renenwes
HR
Avilable
Week, need training
Technology
Avilable
not up-to-date
The traditional shoes
(Markoub) is one of the
biggest products in this
market
Infrasturcture
Avilable
need more investment

18. Chain Analysis
External Analysis
Stage
Political
Economical
Social
Technological
Environmental
Legal
O
T
O
T
O
T
O
T
O
T
O
T
Live Animal
Problems in
Petroleum sector
with the South
Fighting in Darfur
Avilabiltiy of
Livestock
High taxation and
levies
Environmanal
Foot print
Political Instability
Need for hard
currency resources
Absence of
infrastructures for
the sector
week financing
resources
Slaughtering
week financing
resources
International
Environmental
regulations
absence of
infrastructure for
the industry
High taxation and
levies
Hides and skins
improvement law
not in effect
Tanning
Avilability of raw
material
Absence of
infrastructures
Branding
Case de-skinning
for sheep and goat
International
Environmental
regulations
Labour Law
Need for hard
currency resources
week financing
resources
Good quality of
leather fiber
Bad flaying for
cow hides
Absence of
infratructure for
the indusrty
High taxation and
levies
Leather goods
production
Need for import
substitution
Week financing
resources
Avilability of raw
material
Bad quality of
tanning due to old
technology
Labor Law
Absence of
infrasturctures for
the industry
High taxation and
levies

19. Chain Analysis
SWOT Analysis
Strengths
Weekness
Opportunities
Threats
Avilabiiity of resources
(Raw material & Human
resources)
Training
Defecet in hard currancy
Finance
Avilability of local market
Technology used
Increasing human
consumption
Increased Environmental
awareness
Avilability of international
markets
Absence of supporting
services
Cost of production
Quality control
Internal Conflicts & war
International and regional
competition
Legislations (Labor law + Hides &
Skins law)
Absence of infrastructure