Matthea leather value chain13

PARTNERS & EXPERTS COOPERATING IN DEVELOPING SUSTAINABLE LEATHER VALUE CHAINS

EEF LEEUW HANS BOTH

DUTCH LEATHER VISION WOUTER VERSTER

2

Initiatives : “Tannery of the Future�- a self-assessment tool for tanneries TLC - a cooperation for traceable leather TYL - app. technology for tracing leather Aduu Mal (Mongolia) Other initiatives in Albania, Ethiopia

Animal welfare | Impact of live-stock on the environment | Protected animals

Origins of hides & skins: sourcing & slaughtering practices

At the tannery: health & safety, processing technology & management

Salt in preservation and tanning

Water & energy

Tanning time

Biodegradable solutions & waste management

Design

‌. other product group Biodegradable standards, waste management, up-down cycling, fair wages

Transport: truck, air, train, sea

TRACEABLE & TRANSPARENT

Advantages of the sector in Mongolia • density of the hides & skins are good (sizes of skins relatively big) • unfenced living environment of the animals • voucher system • plenty of raw material • possibility to produce in large bulk quantity and small quantities • in preservation less usage of salt due to cold climate in winter • strong awareness on the need to look for alternatives for chrome tanning • cultural imago of the country • tax free import of new hardware technology • government implements policies in favor of green- production, and protecting the sector • existence of tanneries with recycling water treatment systems • opportunity to aim at higher standards and quality • control on health and safety and labor rights • no -child labor observed in the sector • past experience with industrial production, existence of large tanneries, reasonable wellequipped and chrome-managed Dis-advantages of the sector in Mongolia • quality of the leather tanning needs improvements in wet-end and finishing • strong dependence in export on China ( bulk with little added value) • strong dependence on the import of accessories on China (large MOQ’s) • transport costs are relatively high forcing producers to sell for lower prices • water treatment in industrial zone needs improvement • no alternative energy • no waste management at the tannery and in leather good production • hard to avoid, illegal trade of raw-hides and skins to China • limited experience in working with customers for finished leather and providing for the needed quality ; also lack of experience related to design • import leather chemical products is complicated and costly due lot’s of (in-transparent) regulations and bureaucracy, also of the high REACH standard products • wages and costs are higher, not possible to compete with low income countries

TRACEABLE & TRANSPARENT

Co-operation: Digitalize the self-assessment “Tannery of The Future� and link it to advise on a suitable certification for a tannery Expand the Aduu Mal approach for traceable Mongolian leathers and a transparent value chain - improving qualities, connecting producers and customers Connect Mongolian producers with their products to the traceability tool technology Organise a consortium for Horse Leathers - organize investments Training herders - sourcing agents in handling raw materials (horse hair, hides & skins)

SOURCING & PRESERVATION Work at the source on improving the quality in handling and preserving the raw materials - combining various sectors with similar sources (hides, skins, meat, wool, horsehair, casings and other‌).

Organize visits of all involved in the chain to one-and-others company to learn about mutual needs to improve quality and standards.

TRACEABLE HIDES AND SKINS materialize the current voucher system to make hides and skins traceable for the end-user.

VALUATION OF RAW MATERIALS Valuation of the hides and skins according Mongolian standards relate to specific characteristic of the hide & skins in various seasons and living environment, and with a general awareness of global trade standards - this with support of chemical companies, designers, leather wholesalers, local knowledge TANNING TECHNOLOGY promote and implement chrome-free production and technologies requiring the use of less water and energy - more flexible import regulations for chemical companies with REACH standards - check on the list with hardware technologies that can be imported tax-free to Mongolia. Does it cover the needs for the animal fiber sectors?

WATER TREATMENT Developed a plan for the new-industrial zone of tanneries. Improve water, waste treatment and management at current location BUSINESS STRATEGIES & MARKET RESEARCH & INVESTMENT Develop with a selected group of companies interested, and if possible together with their potential new customers new business-strategies based on typical Mongolian assets for international and local markets, include market research (globally lot’s is changing).

- avoid copying practices of countries with a complete different business environment - explore / offer investment opportunities PRODUCTION MANAGEMENT Organize training in production management and in cooperation with customers - including real examples DESIGN Combine increase of knowledge on design, international sizing standards with ideas on sustainable designing - involve practical designers (not conceptual) and organise design-labs at the companies - with support of international design institutes & establish long term connections QUALITY CONTROL Organise strategies for quality control, combine it with collecting the required information on the materials and process used Support companies to get connected to producers of certified zippers, buttons, glues, soles, yarn, lasts, lining and other that can be obtained for small order quantities

Use sustainability to innovate - connect to new technologies