Analysis of Value Additionin Hide and Skin Tannery Industryaround Addis Ababa City, Ethiopian

Abstract

The main objective was to analysis the factors that affect value addition in hide and skin tannery industry in and around Addis Ababa city specifically in Sebeta and Burayu Town with the objectives of describing the market chain for raw hide and skin, to assess quality management’s practices and identify factors affecting both marketing and quality of hide and skin to asses analysis of value addition in hide and skin tannery. A survey was conducted collected from 7 hide and skin collection centers (3 from Sebeta and4 from Burayu), all butcheries’ abattoirs and all middlemen in both town. Semi structured questionnaire and secondary data were collected from both town. Descriptive statistics were used to analyze the data. Results indicated that from all respondents in Burayu 65.2% respondents’ in Sebeta sold the hide and skin to the market. Of total respondents 55.4%, 42.4% and 2.2% sold hide and skin for middlemen, collection centers and informal market respectively in Burayu Similarly 68.7%, 23.2% and 8.1% of respondents sold hide and skin for middlemen, collection centers and informal market respectively in sebeta. Buying process was done without following the grading standards of hides and skins, by simple sorting based on visible defects, size, pattern and freshness. The average sheep skin sale price of farmers 53.86 birr and 48. 83 birr in burayu and sebeta respectively. Collection centers bought 60 birr, 40 birr and 5.5 birr/kg for sheep skin, goat skin and cattle hide respectively in burayu market. In same manner in Sebeta market collection centers bought 50 birr, 37.75 birr and 7birr/kg for sheep skin, goat skin and cattle hide respectively. Of respondents of farmer 82.6% sold fresh with in 12hours and 17.4% sold the hide and skin unpreserved within 24 hours in Burayu. While in Sebeta about 87.8% respondents’ sold hide and skin fresh within 12 hours and 12.2% of them sold the hide and skin unpreserved within 24 hours in burayu. The concerned bodies should reinforce and mainstream the system of buying of hides and skins on standard grade basis for middlemen and collection centers.