DIVERSIFIED crocodile breeder, Padenga Holdings Limited, suffered a 29 percent volume decrease in skin sales in the first quarter of this year compared to what was sold in the prior period.

The group exports crocodile skins and meat largely to European markets. In a trading update for the quarter ended March 2021, the group said during the period under review demand for crocodile meat in Europe remained subdued due to the continued adverse impact of the Covid-19 pandemic.

“In the Zimbabwean operation, skin sale volumes were down 29 percent compared to the prior period (5 904 skins versus 8 286 skins),” said the company.

“A single sales grading was conducted in March with the first-grade ratio being consistent with budget. Demand for crocodile meat in Europe remained subdued under the continued impact of the Covid-19 pandemic.

“No export sales were achieved and 42 tonnes of export meat was in freezers at the end of the period.”

According to the company, a total of 13 006 skins were harvested during the first quarter with the size and quality of the harvestable crop remaining in the pens at the end of the quarter.

Local market sales implemented resulted in 142 tonnes being sold during the quarter under review compared to 16 tonnes in the 2020 financial year. Revenue performance for the group during the period under review was 31 percent below the prior period.

“The first-half of the financial year for the farming operation is largely a cost accumulation period with the greater portion of harvesting turnover following the second half,” said the company.

Padenga said the full impact of the pandemic remains difficult to fully assess due to ongoing developments in its epidemiology and resistance on the part of many people to the safety and efficacy of the vaccines.

It said tanneries in France and Italy remained open in the quarter with emphasis on processing skins exclusively for top tier customers.
“There are early indications of an increasing demand for skins, which is anticipated to continue into the European summer.

“Strong online retail sales of luxury leather goods have persisted across Asia as those regions recovered following lockdowns,” it said.

On the outlook, demand for top quality defect-free skins remains steady and prices for these were expected to hold. Padenga said luxury brands have bounced back after the early 2020 depression in retail sales and have increased their online sales to maintain market access.

“The crocodile business is confident of moving the stock of skins that it has on hand as the mid/upper tier market returns,” said the group. — @okazunga.