The potential and risks of solid waste produced by tanneries

Leather tanning contributes significantly towards making finished leather goods. Raw hides go through a number of processes after they come from a beam house. These processes as a rule are: soaking, liming, de-liming, bating, pickling and finally tanning. 

Interestingly, in the Tannery Estate of Savar, there is no arrangement for managing solid waste so far, even though liquid waste management through the Common Effluent Treatment Plant (CETP) operation is a well-discussed issue. 

A scientific journal and engineering research published in 2020 revealed that proper solid waste management of each fraction of the waste, in a cost-effective and environment-friendly way, could help produce diversified products. The study shows that a major portion of solid waste is fleshing, which contains mainly fat, protein and residual chemicals such as lime and sulphide, which are used in the unhairing process of beam house operations. 

The gaseous efficiency of fat is estimated to be higher than that of carbohydrates and proteins, therefore, lipid-rich waste can be regarded as a potential renewable energy source. More advanced research is required for the materialisation of the home-grown findings of the researchers, however, it is a good piece of information that can be used to understand the potential of these unappealing wastages.

A recent study by the Asia Foundation has identified 11 different solid wastages in the tannery sector, these are trimming, fleshing, trimming before splitting, split leather trimming part, trimming before shaving, shaving dust, setting trimming, toggle trimming, crust trimming, buffing dust and finished leather trimming. 

These solid wastages are presently used in producing different products, mainly for domestic use, at the same time some of them are disposed of directly. The environmental issue is a serious cause of concern in that respect, as most of the sector is in an informal stage. 

The study revealed that as per the Savar Tannery Industrial Estate (STIE) data, during the initial 48 days (starting from 29 June 2023) of the peak season, an average of 81,278 units of hides and skins are received daily for processing. 

The estimated annual production of Tannery Solid Waste (TSW), excluding CETP sludge in Bangladesh is 73,588 to 90,795 tons. These wastages are harmful to the environment if not processed adequately. However, because of the informality in the whole supply chain, limited action has been taken and it remains mostly a headache for the municipalities.

The study tried to find out the informal operators who are taking care of the solid wastage management issues and found that a total of 31 actors are directly and indirectly connected to and can influence the TSW supply chain. 

Different actors are dealing with different aspects of solid waste. Most of them do not have trade licences because of their informal nature, though many of them have formed associations or societies. Lack of a trade licence is one of the most common indicators of their informality. This hinders their ability to avail many business opportunities like taking bank loans. 

Some of the actors in the TSW supply chain are playing key roles, such as Hides and Skins Merchant Association, Posta (BHSMA), Raw Hides and Skins, Trade Cooperative Society, Hemayetpur (RHSTCS), Small Leather Traders Cooperative Society Limited (SLTCSL), Tannery Workers Union (TWU), TSW Collectors, Gelatin Makers Association (GMA), Split Leather Traders Multipurpose Cooperative Society Ltd. (SLTMCSL), Glove Association of Bangladesh (GAB), Bangladesh Leather and Leather Goods Manufacturers Cooperative Society Limited (BLLGMCSL), Dhaka Rexene, Plastic, Leather Shoe, Material Multipurpose Cooperative Societies (DRPLSMMCS) etc. 

A significant number of people are engaged in this sector and creating employment. Some of them lack certifications, registrations or approvals from concerned authorities. 

The study also marked the common formal entities such as Bangladesh Small and Cottage Industries Corporations (BSCIC), Dhaka Tannery Industrial Estate Wastage Treatment Plant Company Limited (DTIEWTPCL), Bangladesh Tannery Association (BTA), Bangladesh Finished Leather, Leather Footwear Export Association (BFLLFEA), Department of Environment (DoE) etc. 

These entities might have an opportunity to work with informal entities to understand the real potential of the sector. Leather and leather goods are the second largest export sector with tremendous opportunities for diversification. If the gaps are identified properly, financial and policy support can be extended.

Due to the informal nature of most of the TSW actors in the supply chain, there are threats to sustainability, operational challenges and complex interactions between informal groups, and formal and informal actors. Furthermore, the dynamics of their interactions, which encompass both forward and backward linkages, along with their respective contributions to the value chain, need to be outlined. 

Total annual solid wastage excluding CETP is about 73,588 to 90,795 tonnes; the wastage amount varies in different stages. The total value of the solid wastage as per the study is about Tk155-945 million, or about a billion. A number of value-added products if produced could contribute significantly to the economy. 

The study tried to look into the issues of strength, weakness, threats and opportunities. A number of measures have been identified with a good number of recommendations. 

An important point to consider is that most of the tannery holders are weak in maintaining their database and record keeping. There is a need for proactive institutions that can come forward to help with capacity building for small entrepreneurs and inform them about the benefits of managing these issues for their own betterment and for sectoral development. 

The municipality is not very willing to manage these wastages, and transport and proper manpower are other difficult issues. There is a serious need for an effective plan for solid waste management, as some of the disposal is very risky for health and hygiene, especially for environment management. 

Casual actors are also a threat to the sector; they produce some products informally on a small scale; they do not have trade licences as mentioned earlier and thus do not qualify for bank loans. On the other hand, the emergence of new actors can create challenges for other existing associations. Bangladesh Hides Skins Merchant Association (BHSMA) in Posta has long been working on managing raw hides but the emergence of Small Leather Traders Cooperation Society Limited (SLTCSL) can create an overlapping authority to manage the issue. 

Environment (governance and physical component) is found to be the root cause of all issues. The organisational reformation of the formal sector and a full ecosystem for TSW and by-products management is much needed. 

The formalisation of the sector considering the risk and safety of the workforce and the localities is highly recommended and considered as a precursor for sustaining the sector. Organisational reformation should ensure the practices for knowledge management, and facilitate the growth of new entrepreneurs and SMEs in the TSW byproducts management. 

Solid waste management in the tannery sector has tremendous potential and opportunities, at the same time, the risk factor is also huge. Some of the sectoral players have practical knowledge as they have been engaged in this business for a long time. In some cases, there is a lack of guidelines and proper policies. Some of the wastages, such as fleshing, need timely disposal. Space allocation issues and the market impact of relocation are huge. 

Bangladesh is going to graduate within the next two years. The circular economy will need to be enforceable, with backward and forward linkages and a clear picture of the total value chain of the sector will need to be transparent. In order to formalise the sector and raise the standards of the people engaged informally, a total overhauling of the whole process with proper planning is required. 

Ferdaus Ara Begum is the CEO of Business Initiative Leading Development (BUILD), a public private dialogue platform that works for private sector development.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.