Hide trade peaks before quarterly slowdown

DAR ES SALAAM: HIDES and skins industry slowed in the first quarter this year with production value falling 23.5 per cent from December as lower cattle hide output reversed strong year-end growth.

The latest Bank of Tanzania (BoT) Consolidated Zonal Economic Performance Report shows that the total value of hides and skins production declined to 2.77bn/- in March this year from 3.61bn/- three months earlier, a 23.5 per cent contraction.

Even so, the industry remained below the December peak but closes to the 3.05bn/- recorded in March last year.

According to the BoT Report, the slowdown was driven primarily by cattle hides, which account for the bulk of the industry’s earnings. Production fell to 389,155 pieces in March this year from 647,348 pieces in December, reducing the value of cattle hides to 2.52bn/- from 3.36bn/-.

Despite the quarterly decline, cattle continued to dominate the market, contributing more than 90 per cent of the sector’s total value. The Central Bank Report underscores the industry’s heavy reliance on cattle slaughter volumes, making overall performance vulnerable to seasonal livestock supply and market conditions. Goat skins proved more resilient.

ALSO READ: Banking stocks set to extend DSE rally

Their value slipped only marginally to 202.9m/- in March from 203.6m/-in December, while production eased to 185,851 pieces from 189,865 pieces. Sheep skins also maintained steady output, with production increasing to 63,130 pieces, although their value edged lower to 45.7m/- from 48.9m/- in the previous quarter.

The figures also reveal shifts in regional production patterns. The Lake Zone remained the country’s largest source of hides and skins, accounting for 30.7 per cent of national output in March this year.

Dar es Salaam followed with 25.8 per cent, while the South Eastern Zone strengthened its position with a 24.1 per cent share. The Central Zone contributed 14.3 per cent, and the Northern Zone accounted for 5.1 per cent. Compared with a year earlier, production became more geographically diversified.

The South Eastern and Northern zones expanded their shares, while the Lake Zone, Dar es Salaam and the Central Zone recorded declines, suggesting changes in livestock marketing and processing activity across the country.

The March figures point to a sector that remains fundamentally strong but increasingly exposed to fluctuations in cattle availability. Unless growth in goat and sheep skins accelerates, the performance of Tanzania’s hides and skins industry is likely to continue tracking the fortunes of the cattle sector.