Subsector Outlook Research in Ethiopia: The Case of Hides and Skins Production, and Marketing

Ethiopia is the 5th largest livestock producer in the world and ranks first in Africa and the country is home to millions of livestock population that has the potential to produce hides and skins. the study aimed to analyze the status and outlook of hides and skins (HSs) production and marketing in Ethiopia. The study used secondary data and triangulated using KII and FGD, and conducted analysis using different forecasting techniques. Hides production increased by 4.94% annually between 2005/06 and 2021/22. Smallholder HSs sales rate declined while HSs home utilization rate increased between 2008/09 and 2021/22, these might be due to poor HSs quality and marking problems. These suggest that preparing a livestock management training manual and incorporating it into the existing extension package, and linking actors with markets are crucial. From 2002/03-2021/22, the volume of HSs, and leather and leather product (LLP) exports was volatile but reduced from 10.55 to 2.24 thousand MT, and the income reduced from USD 52.22 to 33.2 million. The volume of exports reduced by 43.47% from 2012/13 to 2021/22; this could be the result of the low quality of HSs, and government policy led to low production of tanners and manufacturers to supply to the export market therefore, maintaining the quality of HSs starting from livestock production, slaughter, and post-slaughter through extension service, and revising policies are important. Despite Ethiopia has opportunity for livestock availability, government support of the leather sector, and high demand for HSs in the international market, the leather sector faces production, marketing, and policy challenges. With these challenges, HSs production will continue and increase, while the sales rate will decrease and the utilization rate will continue but never increase for the next ten years. The HS and LLP export will also continue, but never increase in these years.