Manufacture of leather products in Azerbaijan is rapidly falling

In the first half of 2014, Azerbaijan produced leather, leather products and footwear total value of 5,484,100 manat. This is 66.1% less than in the comparable period of 2013.

According to the State Committee of Statistics, the trend of lower production figures tanneries and shoe factories started in January this year, after a 30.9% increase in output in 2013. From the beginning it was produced 316,200 m2 skin and 31,300 pairs of leather shoes. The production of the skin decreased 23.8%, and footwear - 80.5%. Enterprises are experiencing an acute problem with selling products: storage remains enterprises comprise 291,200 m2 of leather and 56,000 pairs of shoes.

One of the largest manufacturers of leather products in Azerbaijan is LLC Gilan Deri. The company was founded in 2005 and is located in Yevlakh. The tannery complex occupies 46,700 m ². The daily capacity is 27 tons of skin. Gilan Deri exports to Italy, Spain, Turkey, Ukraine and Iran. According to official statistics, in 2012-2013, Azerbaijan exported 135,000 pairs of leather shoes. It is 7000 pairs more than in 2012. Exports in value terms ($ 217,300) decreased by more than twice.

The main part of the legal domestic production has to meet the needs of law enforcement agencies. According to traders, the level of domestic production in consumption does not exceed 15%.

According to the State Customs Committee, in 2013 Azerbaijan official way was delivered more than 3 million pairs of shoes a total declared value of $ 9,791,900. Imports in volume terms increased by 3% and the value - 22.6%.

Besides, it exported more than 3,000 tons (+327 tons) of finished leather. Export of leather ($ 17 million) increased by $ 3 million. - 08B-