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Markets for Skins & Leather from the Goat, Emu, Ostrich, Crocodile & Camel Industries A report for the Rural Industries Research and Development Corporation by Kylie MacNamara Peter Nicholas Dennis Murphy Elysa Riedel Brendan Goulding Chris Horsburgh Tom Whiting Bronwyn Warfield January 2003 RIRDC Publication No 02/142 RIRDC Project No DAQ-258A © 2003 Rural Industries Research and Development Corporation. All rights reserved. ISBN 0 642 58541 5 ISSN 1440-6845 Markets for Skins & Leather from the Goat, Emu, Ostrich, Crocodile & Camel Industries Publication No. 02/142 Project No DAQ-258A The views expressed and the conclusions reached in this publication are those of the author and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report. This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone 02 6272 3186. Researcher contact details Bronwyn Warfield Rural Market Development Qld Department of Primary Industries 203 Tor Street PO Box 102 TOOWOOMBA Qld 4350 Phone: 07 4688 1251 Fax: 07 1688 1808 Email: [email protected] In submitting this report, the researcher has agreed to RIRDC publishing the material in its edited form. RIRDC contact details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6272 4539 Fax: 02 6272 5877 E-mail: [email protected]. Website: http: //www.rirdc.gov.au Published in January 2003 Printed on environmentally friendly paper by Union Offset Printing ii Foreword The project “Identification of market opportunities for skin products of emerging animal industries” has sought to provide Australian producers and tanneries with a clear understanding of the opportunities and market characteristics for skin and leather products from goat, emu, ostrich, crocodile and camel. The project was undertaken in partnership with industry and guided by a committee that included representatives from each of the five industries. As many of the skins and leathers from these industries were being dumped or sold at very low prices when the project was initiated in 1999, a need was identified to better understand the markets for them and determine how to improve the competitiveness of these industries. The report provides insight into the market drivers, market characteristics, and the issues that need to be addressed to increase industry viability. This market knowledge will enable businesses in these industries to better meet customer needs and identify the factors critical to successful market development. A number of case studies are presented which document feedback from along the supply chain and provide insight into what producers and tanneries need to do to improve their quality and therefore market success. The report includes an overview of the characteristics and supply capabilities for each of the skins, and of the world market in which these industries operate. Detailed in-market research was also conducted in Italy, France, Japan, China and the United States to determine the market requirements and gain feedback on Australian skins and leather. The report also includes a list of recommendations for each skin outlining the future research and market development directions that need to be taken to capitalise on the market findings. This project was funded by QDPI and from RIRDC Core Funds, which are provided by the Federal Government for program RIRDC’s program area of New Animal Products. This report, a new addition to RIRDC’s diverse range of more than 800 research publications, forms part of its New Animal Products R&D program, which aims to accelerate the development of viable new animal industries. Most RIRDC publications are available for viewing, downloading or purchasing online through its website: • downloads at www.rirdc.gov.au/reports/Index.htm • purchases at www.rirdc.gov.au/eshop Simon Hearn Managing Director Rural Industries Research and Development Corporation iii Acknowledgements The authors thank the Skins Advisory Committee for its guidance and assistance throughout the course of this project. The committee members included Graham Packer, Packer Leather (goats); Jean Leonard, Tropical Ostrich Producers Association (Nenlake brand); Catherine Money, CSIRO Leather Institute; Peter Seidel, Ship of The Desert (camel); Barry Ryan, Ausgoat; John and Lillian Lever, Koorana Crocodile Farm; and John Dingle (UQ Gatton – Emu). Committee members gave considerable time to provide information for the benefit of the whole industry and to review the various milestone reports and the final report. Several case studies, based on overseas visits conducted by committee members, have also been included. The resulting insights will provide new and existing exporters with tips for undertaking business in export markets, as well as highlighting lessons that the committee members learnt from their in-market research and trade visits. We are grateful to Peter McInnes (RIRDC) for his valuable input and guidance, and also appreciate the assistance of the Italian Chamber of Commerce and Industry in Australia (ICCA) in helping to organise research itineraries. Special thanks to Terry English and Dennis Saint (Australian Ostrich Association), and Novag (emu) for providing samples for in-market research and information for the report. Thanks too to Phil Glatz (South Australian Research & Development Corporation), Steve Peucker (DPI), Arthur Pederick (EIFA), and James Power (NOVAG) for reviewing grading guidelines and providing general feedback. Special thanks also to the Royal National Association and Eventmark for allowing inclusion of the skins in the Wool Fashion Parade at the 2000 Brisbane Show and for promoting the skins. Finally we thank Cherbourg Abattoir for processing the goatskins that featured in the fashion parade. iv Contents Foreword.......................................................................................................................... iii Acknowledgements.......................................................................................................... iv Executive Summary ......................................................................................................... ix 1. Introduction .....................................................................................................................1 1.1 Purpose......................................................................................................................1 1.2 Methodology ..............................................................................................................1 1.2.1 Market Selection Rationale .............................................................................3 1.2.2 Exchange Rates..............................................................................................4 1.3 Limitations..................................................................................................................4 2. The Skin & Leather Industry ..........................................................................................5 2.1 Terminology ...............................................................................................................5 2.2 World Overview..........................................................................................................5 2.3 Australian Overview ...................................................................................................6 2.4 Export Markets...........................................................................................................6 2.4.1 China...............................................................................................................7 2.4.2 France .............................................................................................................7 2.4.3 Italy..................................................................................................................8 2.4.4 Japan...............................................................................................................8 2.4.5 United States...................................................................................................9 3. Goat................................................................................................................................10 3.1 World Supply in Skins & Leather .............................................................................10 3.2 World Trade .............................................................................................................11 3.2.1 Raw Skins .....................................................................................................11 3.2.2 Semi-Processed & Finished Leather.............................................................13 3.2.3 Manufactured Product...................................................................................13 3.3 Australian Goat Industry ..........................................................................................14 3.3.1 Industry Overview..........................................................................................14 3.3.2 Australian Trade............................................................................................14
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