Leather Value Chain
WHAT IS THE LEATHER VALUE CHAIN?
The Leather Value Chain (LVC) refers to the various stages and processes involved in the production of leather products, from the initial sourcing of the raw material to the final distribution and sale of finished leather goods. Leather can be sold at various stages in the LVC, depending on the specific business model and the goals of the seller. Here are the primary stages in the leather value chain where leather can be sold:
1. Raw Hides & Skins: Leather production typically starts with the processing of raw hides and skins obtained from animals such as cattle, sheep, goats, etc. Raw hides and skins can be sold to tanneries or leather processing facilities.
2. Tanneries: Tanneries are responsible for processing raw hides and skins into leather through a series of chemical and mechanical processes. Tanneries can sell finished leather to manufacturers or distributors.
3. Wet-Blue Leather: After the initial tanning process, leather is often referred to as “wet blue.” It is sold in this semi-finished form to manufacturers who will further process and finish it according to their needs.
4. Crust Leather: Crust leather is the stage after wet blue leather. It has undergone more processing but still requires finishing. Crust leather is sold to manufacturers or finishing companies.
5. Finished Leather: Finished leather is the final product ready for use in various industries such as fashion, footwear, upholstery, and automotive. It can be sold to manufacturers of leather goods or directly to retailers.
The leather value chain can vary in complexity and scale depending on the specific product and market. It is an integral part of the global fashion and manufacturing industry, and stakeholders within the chain collaborate to produce high-quality leather products while addressing environmental and ethical concerns.