Growing demand for leather products in PNG

By GYNNIE KERO
A GROWING demand for leather products such as sandals, shoes, bags, hats and others on the domestic market is a positive sign for development and expansion of small businesses in the country.
This is aptly reflected in the Small Industry Centre (SIC) having a turnover of K1.3 million from sales of leather products in the country last year.
Speaking at the SIC’s  37th independence anniversary celebrations last week, manager Taua Apuai predicted that SIC’s revenue for this year would increase because of the growing demand for leather goods.
He said as a promoter of cottage industries and appropriate technologies in the country, SIC’s leather products were 95% handcrafted.
“SIC is 100% revenue-sustained and it imports leather from Sri Lanka to produce high quality sandals, shoes, hats, bags and other goods,” Apuai said.
“We keep our prices as low as possible to give the little people a fair chance of engaging in the leather businesses.
“Regular clients include individuals and local businesses that purchase in bulk and resell with own mark-up.”
Technical training and project coordinator Huha Avia said leather products were doing well on the domestic market.
He encouraged the manufacturing sector to not only supply the local market but the international market as well.
“Manufacturing sector has over the years focused on supplying the local market and there are only a small number of manufacturers involved in ongoing export sales,” Avia said.
“Nonetheless, a wide variety of products are produced in Papua New Guinea, ranging from metal to processed foods.
“Those industries that do achieve export sales include plywood, veneer, canned fish, coconut oil and processed tea and coffee.”
Leather, needless to say, can also develop a niche for itself in the growing PNG economy.

He acknowledged the government for its continued support and in recognising the leather project.
Apuai says SIC had big potential in the leather industry and was embarking on producing higher quality products to meet customer demand.
“However, the main challenge SIC is faced with is high import costs,” he says.
“SIC pays more than K24, 000 for a shipment.”
The SIC ‘s leather project is one of Small Business Development Corporation’s (SBDC) aim to lift domestic production and investment in the country by promotion of best practices with the view to stimulating smarter and successful small businesses by 2030.
The primary and legal function of SBDC is to provide, either by itself or through partnership arrangements with appropriate government or private sector organisations, advisory, training, management and administrative support services for the development and expansion of small business in the country.

Technical training and project coordinator Huha Avia said leather products were doing well on the domestic market.
He encouraged the manufacturing sector to not only supply the local market but the international market as well.
“Manufacturing sector has over the years focused on supplying the local market and there are only a small number of manufacturers involved in ongoing export sales,” Avia said.
“Nonetheless, a wide variety of products are produced in Papua New Guinea, ranging from metal to processed foods.
“Those industries that do achieve export sales include plywood, veneer, canned fish, coconut oil and processed tea and coffee.”
Leather, needless to say, can also develop a niche for itself in the growing PNG economy.