1. Exotic Leather Industry

2. Industry driven initiatives
Exotic Leather SA & Exotic Leather Research Centre (international initiatives):
Focus is to Promote Niloticus specie & South African Crocodile Industry through development and promotion of Good Operating Practices
AND Improve market access through Rapid Response Design and prototype manufacturing Centers (NY in progress)
AND Conduct Scientific Research on Animal Welfare & Production systems
Domestic work programs include:
Constitute representative industry forums to represent value chain Stakeholders in Government interactive forums through SACIA
Developing Industry Charter & GOP Standards with independent third party verification and Accreditation
Collection of industry statistics & research data for purposes of benchmarking
Research Leather Institute & development of Training Centers & Curriculums for Industry specific Skills development

3. World Trade Crocodilian skins

4. Crocodilian Industry Trade
Average world Crocodilians skin production approx. 1,7 m skins annually, of which 275 k (16%) comprises of Niloticus skins
SA Crocodylus niloticus annual exports average of approx. 85k skins annually = 13.6% of world crocodilian skins trade and 30% of Niloticus (NILE CROCODILE) skins traded internationally earning estimated R 300 m in export revenue
SA the 2nd largest exporter of Nile crocodile skins
Skins were exported from 2006 – 2015 mainly to Europe and Asia and 19 k crocodile skins to the US, Mexico and Germany
Meat are mainly exported to Europe & Hong Kong

5. Crocodile Industry (cont.)
95% exported (approx. 60% as raw skins)
HUGE VOLATILITY IN THE MARKET ..DECREASE IN THE MONEY
85 Crocodile farms, est. employment 3000 workers
3 EU Approved abattoirs
4 Tanneries capable of tanning Crocodile leather
(?) Manufacturers, Designers and Retailers of crocodile leather goods
Crocodile meat export
Year
2013
2014
2015
Per Kg
26 586
46 000
23 586
Crocodile Skin export
Total Skins
73 032
59 638

6. Ostrich Industry
South Africa is still the world leader in ostrich industry with more than 75% of the market share
More than 80% of meat, leather and feathers are exported (skins tanned to crust or finished leather)
Meat (heat treated and fresh meat) is mainly exported to the European Union (That’s where the best prices are)
Leather is exported to Europe for the fashion industry, USA and Mexico for the boot industry and Asia for handbags and leather goods.
15-20 % of the leather is used in local manufacturing

7. Ostrich Industry Export Statistics Heat treated ostrich meat export
Year
2014
2015
2016
Per Kg 1 
Total Rand value
R 71 
R 122 
R81 
Fresh Ostrich meat exported 1 
R 33 
R 157 
R 288 
Ostrich Skin export
Total Skins
R 364 
R 442 
R 413 

8. Ostrich Industry (cont.)
396 Registered ostrich farms
7 EU Approved abattoirs
4 Tanneries
Employment is ± (Farms, Abattoirs, Tanneries, feather processing plant and tourism industry)
Ostrich Manufacturers
Product
Quantum
Footwear manufacturers
Shoes, boots etc. 15
Furniture and interior
Various furniture items and decorations 20
Leather goods manufacturers
Handbags, belts, purses etc.
150
Crafters
Clothing, handbags, belts etc.
350

9. Ostrich Industry (cont
Ostrich Industry (cont.) decline is demand for the leather and there decrease is also due to the influenza

10. Swot analysis Strength Weaknesses
Industry organisations - SACIA, SAOBC, ELSA
e-permitting linked to farm traceability
Export promotion (time to market)
Meat Safety Act & Regulations (DAFF)
Scientific Research done by UP on animal production, welfare and product quality improvements
Distance to markets & Lack of Generic Marketing platform
Value chain vertical integration
Lack of tailored Finance to support emerging BBBEE investors
Adoption of sustainable production models
Development of Good Operating Practises & industry standards
Research on Avian Influenza (Ostrich)
Opportunities
Threats
Emerging markets in Asia & Africa
Beneficiation of skins
Market volatility & Lack of reliable industry stats
Potential meat exports to USA & China
Import Duties on exports to Asian Pacific countries
Bilateral trade agreements (AGOA) agreement
Suspension of meat export to EU

11. What needs to be done to improve Industry economic feasibility
Stakeholder Audits/benchmarking to ensure production volumes/capacity meet demand & export certification
Implement uniform industry Charter containing GOP & standards across provinces (interim GOP’s completion March 2018)
Align Permitting system (TOPs & Cites) to align with Industry Charter and GOP standards
Stakeholder engagement & verification to identify candidates for support and funding
Development of skills & processing capacity to facilitate local beneficiation through scaled co-operative entities
Develop and promote unique SA sustainability label
Compliance to Importer Country regulations (e.g. Meat Residue Monitoring programs & protocols)