The Ministry of Industry announced that it would ban the export of crusted leather as of December 2011 due to price hikes and the scarcity of supplies.

The ban aims to control the price hike of hides and skins in the market, and as a result force out the middle men who speculate on prices according to Berhanu Serjabo, director of corporate communication of the Leather Industry Development Institute under the ministry.

A great percentage of the revenue from leather exports last year was made from the exports of crusted leather. Revenue from the export of crusted leather accounted for 38.1 percent of the 104.1 million dollars gained, bringing in 39.7 million dollars.

The ministry had put a price cap on skins and hides in April, after prices surged following Easter, reaching as high as 150 birr per skin. The price of sheepskins is pegged at 47 birr and the price of goatskins is set at 30 birr.

Out of the 26 companies that export crusted leather, six are only involved in processing skins and hides to crusted leather, then exporting it.

Source: Fortune