B Mirror Report: A slowdown in the sacrificial animal hide market during this year’s Eid-ul-Azha has raised concerns among industry insiders that tanneries may fail to meet their leather collection targets, despite a series of government initiatives aimed at protecting the country’s leather sector.

Traders and tannery owners say years of financial losses, a shrinking number of seasonal traders, rising preservation costs, and growing direct purchases by tannery owners have weakened the traditional hide supply chain. Unfavorable weather conditions, including heavy rain and extreme heat, have also discouraged many traders from collecting and storing raw hides due to fears of spoilage.

According to the Department of Livestock Services, around 12.33 million animals are available for sacrifice this year, including 5.69 million cattle and buffaloes and 6.63 million goats and sheep. The expected supply exceeds estimated demand by more than 2.2 million animals.

The Export Promotion Bureau (EPB) estimates Bangladesh produces nearly 220 million square feet of leather annually, with more than 60 percent generated during the Eid-ul-Azha season. Cow hides account for nearly 65 percent of total production.

To prevent damage to raw hides and support the leather industry, the government has taken several measures, including distributing free salt nationwide for hide preservation. Training programs were arranged for madrassas, orphanages, and traders under district administrations, while divisional monitoring teams were formed to oversee preservation activities.

Authorities also launched awareness campaigns through television, radio, newspapers, social media, posters, leaflets, and mobile SMS services. More than Tk 170 million has been allocated for free salt distribution, while additional funds were provided for local training initiatives.

The government also raised the price of salted raw cowhide by Tk 2 per square foot this year. In Dhaka, prices have been fixed at Tk 62–67 per square foot, while outside the capital prices range from Tk 57–62.

Commerce Minister Khandaker Abdul Muqtadir expressed optimism, saying proper implementation of the government’s plans could ensure that “not a single hide goes to waste this year.”

At the Savar Tannery Industrial Estate, raw hides have already started arriving from different parts of the country. Tannery owners say preparations are complete, including salt and chemical stockpiling, cleaning operations, and upgrades to the Central Effluent Treatment Plant (CETP).

Industry insiders estimate that around 10 million animals may be sacrificed this Eid, and tanneries aim to collect 70–75 percent of the hides. However, many owners doubt the target can be achieved due to weak market participation and rising preservation costs.

ABC Tannery owner Imam Hossain said excessive heat and electricity disruptions could lead to significant spoilage. Bangladesh Tanners Association Chairman Shahin Ahmed noted that 10–15 percent of hides are typically wasted every year and warned that rain this season could increase risks further if hides are not salted quickly.

Bangladesh Finished Leather, Leather Goods and Footwear Exporters’ Association CEO Ashraf Uddin Ahmed Khan said more than 20 percent of hides were damaged last year due to implementation failures despite official preparations.

“If the government support continues, the situation can be managed. Otherwise, Bangladesh may lose competitiveness in the international market,” he said.

The downturn is also visible in Postogola, one of the country’s largest rawhide trading hubs in Old Dhaka. Traders there have reduced their Eid collection target by nearly one-third to around 100,000 hides this year.

Business leaders said the market used to handle nearly 300,000 hides during the three Eid days in previous years, but direct purchases by tannery owners have significantly reduced supply to traditional wholesalers.

Former Bangladesh Hide and Skin Merchants Association President Aftab Khan said nearly 80 percent of sacrificial hides are now bought directly by tanneries, leaving only a small share for wholesale markets like Postogola.

Traders warned that delays in salting hides, especially outside Dhaka, continue to cause spoilage and price drops. They also said transporting untreated hides over long distances to Dhaka increases the risk of damage and negatively affects the market.

Industry stakeholders expect the true market situation to become clear after Eid, as concerns remain over whether fair prices can be maintained and whether preservation efforts will be effective enough to prevent large-scale losses.