In previous posts, the outlook for the leather industry in 1999 was briefly given the destructive sanctions and the specific situation in the country in the pandemic of Corona Virus, noting that six pivotal measures will be necessary for the survival and continuation of this sector of the industry.
Although the recent political developments will have an impact on the country’s economic process, and in the current context of the Corona virus pandemic, the management of trade and economic affairs has become more complex than before; the country’s overall trend is to overcome the sanctions crisis. Of course, this stage also has its own costs.
Allocating foreign exchange to import raw materials, controlling currency fluctuations, and helping to rebuild the Goat skin industry were three of the six measures outlined in the previous table. However, although incomplete, these steps are being implemented in the country and tangible signs of their implementation are visible.
Currently, the import of chemicals, although with the problems ahead and the relative stability of the foreign exchange market, has somewhat calmed the atmosphere, but after years of follow-up, there is still a small budget for the modernization of this industry.
Now, there is little discussion about this budget, which has been allocated with the commendable efforts of the Director-General of the Textile and Clothing Office of the IRI Ministry of Industry, Ms. Mehrabi (Eng.), and relevant experts.
The fact of the matter is that the Goat skin industry has been completely forgotten after the closure of large factories such as Moghan leather Co., Shiraz leather Co., Roudbar leather Co., Khorasan leather Co., Lorestan leather Co. and Khazar Khaz Co. Therefore, raw material producers have been forced to export these materials, especially Salambor.
With the exception of a few national moves to establish a production unit that turned this valuable leather into crust and leather and even the final product in the 1970s, no one went for it with high added value but no hassle, because the export of raw materials is easier and it has a faster financial return.
The capacity of the large factories was more than 6 million volumes of Goat skin per year, which was able to process about 40% of the Goat skin extracted and turn it into finished leather. The factories, which were built in the 1950s at a high cost and with the benefit of foreign investors and modern machinery, some of them were even active until the mid-1970s. These factories all pursued one main goal, which was to strengthen domestic production capacity as well as the consumption of high-quality domestic sheepskin. This practice should have spread after the Islamic Revolution, but unfortunately, for various reasons, including inefficient government management, all of them were shut down.
Different numbers and figures of their added value are calculated and expressed, but what is clear is that in addition to the very high and significant added value, there has been a lot of job creation in this industry. Although the machinery of the above factories entered the cycle of smaller factories and workshops, this did not bear fruit for the production of Goat skin.
The purpose of the above is to show the importance of the Goat skin industry in the country’s economy and employment. Now that the Ministry of Industry, which is in charge of the country’s industry, has come to believe that it has found the will to revive the Goat skin industry. Therefore, this ministry must continue this useful and valuable move by allocating a suitable and large budget for the reconstruction and modernization of existing units, and even the construction of Goat skin production projects in the coming years.
It is important to note that due to the sharp devaluation of the national currency, figures such as IRR 200 billion this year and based on the line 50000-39 of miscellaneous budget for the year of 97 to help modernize and complete the value chain to prevent the sale of raw materials, the subject of Article 37 The law on removing barriers to competitive production and financial promotion of the country and in the form of subsidized facilities for the purchase of machinery and equipment is very small, should be given priority.
The assistance and cooperation of the IRI Ministry of Industry will be very effective in facilitating the allocation of this small amount in the shortest possible time. Therefore, we hope that this will continue next year with a figure worthy of the leather industry. Otherwise, it will not produce any useful output. In addition, artisans who long for industrial and national activity and seek to create financial benefits for themselves should also welcome this move and the concerns of expanding and developing their factories to create more added value. Follow up with the relevant ministry.
Written by Mr. Hassan Nasirian – Editor-in-Chief of Sanat Charm Magazine
Iranian Leather Industries Association
The world’s light sheep and goat leather production increased from 4685 million square feet in 2001 by 11.3 percent to 5,211 million square feet in 2010, an average annual growth of about 1.2 percent. During this period, Goat skin production fluctuated sharply and has been declining since the growth of 2006.
