The local tannery industry needs to improve its production process to cope with higher costs after domestic leather prices increased by 250% over the past two years to a record high due to a shortage of leather supplies.
Wet salted hide is now traded at a record 58 baht per kilogramme from 20 baht in 2010 and 48 baht at the end of last year, said Somkiaet Bongkotpannarai, president of the Thai Leather Cluster. And prices are projected to rise further.
Currently, leather supply stands at half the demand. Thailand exports 30 billion baht worth of leather products a year excluding shoes, while 80% of the leather used here is imported.
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