Economic crisis bites Indonesian python exporters

Alvin Darlanika Soedarjo Yahoo News 29 Oct 08;

JAKARTA (AFP) – Demand among US and European consumers for exotic Asian luxuries such as snakes and coral has nosedived since the onset of the global financial crisis, raising fears of a surge in smuggling.

Indonesian python traders say Western snake lovers are feeling the pinch, or bite, of the worst economic downturn since the Great Depression, meaning orders for all things scaly are on the slide.

"So far this October the orders for live pythons from the US and Europe are only 10 to 20 percent of what they were in October last year," George Saputra of the Indonesian Reptile and Amphibian Trade Association told AFP.

"The economic downturn also means people are buying less python skin products, as snakeskin is used to make items for a lifestyle that is of secondary importance now."

Whether it's live pythons for high-end exotic pet stores or skins for rock-chic pants, handbags and belts, exporters said snakes appeared to be out this northern summer.

Best known for adorning rock stars like Keith Richards, snakeskin went high-end in Europe in the early 2000s thanks to designers including Yves Saint Laurent, Calvin Klein and Jimmy Choo.

In 2000 an Yves Saint Laurent snakeskin trench coat reportedly sold for 9,250 dollars, and four years later designer snakeskin shoulder bags were priced at more than 2,000 dollars.

But as US and European consumers seek to make savings in the wake of the Wall Street meltdown, the belts they tighten are more likely to be made of cheap imitation leather than an Asian reticulated python.

And that means tough times ahead for the roughly 180,000 people reportedly employed in the Indonesian snake trade.

"The industry is holding on to their employees now but I think lay-offs are coming. My advice to them is to cut down on their production," Saputra said.

Tonny Wahyu of Penta Exomania, an exporter of live pythons, monitor lizards and frogs, said he was worried for the future of his lucrative niche markets in the United States and Europe, and for the future of the reptiles.

"I'm considering developing alternative markets such as Japan and South Korea," the Java-based reptile breeder said.

"But Asian importers can be harder to deal with. Japanese importers are stricter than the American or European importers. If a nail from a reptile is broken or damaged, the Japanese importers will reject it," he said.

Exporters said the falling demand for legally exported snakes could lead to a boom in smuggling.

"If the legal export of reptiles is slowing, then I fear the illegal trade of reptiles will be more rampant," Tony said.

"For example, the komodo dragons are endangered and their trade is prohibited, but somehow they are still exported illegally."

TRAFFIC, a group that monitors legal and illegal trade in undomesticated animals, reported that total python exports from Indonesia into the European Union from 2000-2007 was 405,413 specimens, with 87,372 to the United States.

Reticulated pythons, which are among the largest snakes in the world and are capable of crushing and swallowing a human, are coveted for their attractive diamond markings.

This year, Indonesia's export quota for reticulated pythons is 157,500 for skins or skin products, and 4,500 for pets, according to the Convention on International Trade in Endangered Species of Wild Flora and Fauna, or CITES.

Corals from some of Indonesia's thousands of tropical reefs are another niche export market which could be hard-hit by a global recession.

Handoko Prawiro, who has been exporting coral and live tropical fish to upmarket US and European aquariums since the early 1980s, said the trade depended on people with money to indulge their hobbies.

"Aquarium lovers are mostly consumers with a lot of time and cash to spare. The economic crisis could hurt the affluent people who are among my customers," he said.

Hammer, candy and sunflower corals legally harvested from the reefs of Makassar and Banyuwangi can sell wholesale to US distributers for up to 40 dollars apiece, he said.

Like Tony, Prawiro said diversification might be the answer and he was eyeing new opportunities in the Middle East and Eastern Europe.

"I know hard times are here but human beings will always need entertainment and this is a new kind of entertainment for some," he said.