Baku, Azerbaijan, Jan. 8
By Nigar Guliyeva - Trend:
Kazakhstan has introduced a ban on the export of unprocessed cattle hide from the country for a period of six months.
The corresponding order was signed by Minister for Investments and Development of Kazakhstan Zhenis Kasymbek.
In Kazakhstan, most of the unprocessed hides are exported abroad, while domestic plants and factories fail to operate in full capacity due to a lack of material.
Entrepreneurs repeatedly appealed to the government to resolve the current situation.
To prevent the shortage of cattle hide in the domestic market, by the order of the Minister for Investments and Development of Kazakhstan, a temporary ban was introduced on Aug. 15, 2016 for a period from Nov. 1, 2016 to May 1, 2017.
But, following expiration of the ban, the market again faced a deficit.
To date, the tannery industry in Kazakhstan is represented by three large and 10 small enterprises whose production capacity allows processing about 2.4 million hides of cattle a year, which is almost the entire amount of tanning raw material obtained from slaughtered cattle. In fact, tanneries in Kazakhstan process about 400,000 cattle hides a year or 17 percent of their total volume. The cattle hides are exported to China, Kazakh MPs noted earlier in an address to Prime Minister of Kazakhstan Bakytzhan Sagintayev.
The budget receives about 22.5 million euros from the export of unprocessed hides a year, and 150 million euros from the sale of finished leather. If the skin processed in the country is used for sewing shoes, haberdashery and other products, the amount may rise to 1.875 billion euros, or by 83 times.