Niche Marketing Success Stories: Processing Camelid Fiber Outside of South America

By Eric Hoffman

hen discussing the processing of alpaca fiber I have I’m happy to report that I found plenty of success stories, from people working with not just alpacas but also often hear people say how hard it is to compete with llamas, and guanacos and not in just one country, but in many countries against the Peruvian mills because they produce around the world. In 2006, as part of film project, we such a large volume of yarn for a lower price than interviewed both Derek Michell and W Juan Pepper at the offices of Michell & it can be produced in North American or European CIA in Arequipa, Peru. Derek’s grandfather was the founder of what is countries. When I hear this I am reminded of an experience I had commonly called the “modern alpaca fiber trade” in Peru. Juan Pepper is the on a market day in the small town of Ayvari in Peru. Almost all of Commercial Manager for Michell. Derek runs a mill with 1,500 employees the more than forty vendors gathered in the central plaza were yet he began his conversation with us by explaining how little alpaca fiber there is selling the same three or four styles of shoes. There was virtually in the world (about 5000 tons). He points out this is only one-third as much nothing to distinguish the wares in one stall from the next. as the annual cashmere harvest. “There are many variables at play in developing Nobody had a niche and they were all getting a diluted response a worldwide market, the first being awareness. With greater awareness of from market goers. I wondered if the Peruvian mills really do make competition too tough or if that perception is due to not understanding the importance of developing a special niche, as the vendors in the Peruvian village had failed to do. Derek Michell and Juan Pepper of Michell & CIA, Arequipa, Peru

The Camelid Quarterly 1 March 2009 Niche Marketing Success Stories the special qualities of alpaca fiber 5000 Cristo Mountains. Although they are far tons would disappear overnight,” from large cities (Santa Fe is 90 miles to declared Derek. the north, and Albuquerque is 120 miles The term ‘specialty fiber’ is used to to the south, it is 45 miles to Taos and 35 describe all of the South American miles from Angel Fire, a ski resort), tour camelids, plus cashmere , qiviut (Musk buses pull up regularly to Victory Ranch. ox), angora, yak, and mohair. All totaled The ranch’s unwritten motto seems to be the specialty fibers comprise about 2.6 “ambience and something for everyone percent of the natural fiber grown in the under the alpaca banner.” Victory Ranch world. When it comes to natural fiber is an example of what an entrepreneurial production, sheep will always produce spirit can do if enough brains and heart Tops are produced from the worsted system. A tops is an the highest volume. But when it comes untwisted strand of staple after the combing process is are poured into a project. The ranch to sheeps’ wool and camelids (or vicuna, completed. Tops are usually wound into a ball weight buildings are casual looking and between 5 and 15 pounds (2.27-6.80 kg) for the guanaco, and llamas) in the same micron purpose of trading. Much of the fiber processed in Peru consistent in Southwest pueblo design. range, alpaca will always have the is shipped to overseas destinations as tops, where it is What looks casual is more like a beehive further processed into yarns or finished goods. Some of smoother handle because of their large mills in Peru consider trading in tops their in terms of activity: a ranch store stocked smoother scale structure. market niche. with the best high end garments from Juan Pepper is one of the most fancy styles for high fashion. The Peru and also inexpensive trinkets, a herd knowledgeable people in the Chinese or Japanese may have an of 200 alpacas spread over hundreds of international alpaca fiber trade. He entirely different way of looking at what acres and fifty acres of hay production. spends more than six months a year is possible. In some cases they may want Carol and her daughter Darcy regularly traveling to develop new markets. to work in blends that are only 50% travel to and from Peru to keep their store Recently he has been working in Japan alpaca because that’s what they can stocked. But this in only part of why this and China (which in 2005 purchased afford. This is why there is plenty of out of the way ranch is successful. 50% of the alpaca fiber tops in the room in the world for expanding alpaca They are a working ranch that is open world). Juan also visits western products. Creativity and awareness are to the public from 10 a.m to 4 p.m seven European countries regularly as well as among the most important variables.” days a week, even on Thanksgiving and Syria, Turkey and Russia. Juan’s insight was illustrated in the Christmas. They are closed in January During our interview with Juan he creativity of the producers I spoke with. and February. As an adjunct to the explained that the creativity of people It appears that there is plenty of room walking tours visitors can feed some who know the likes, dislikes and for successful niche markets in the alpacas ($3.00 for a cup of pellets) and traditions of their own cultures is the camelid fiber industry. walk among the herd. underpinning of developing successful This is a large ranch where elk and niche markets and spreading awareness NICHE MARKETING bear are commonly seen crossing nearby of alpaca fiber worldwide. In Juan’s Victory Ranch Alpacas roads and coyotes are kept from the words, “As Peruvians we can’t (United States) alpacas by a vigilant pack of Great realistically address all the possibilities Carol and Darcy Pyrenees guard dogs. The naturally for blends and finished goods. We can Weisner occurring pastures are similar in never supply the entire world with all appearance to bofadales, the distinctive the needed alpaca yarns and fine finished Fiber Products plant community where alpaca are most products. We have a large processing Yarns (both 100% often found. This is, in part, why the capacity but much of the finishing is alpaca and blends), Carol Weisner of tour buses stop here. Their customers Victory Ranch better done by a Chinese, Japanese or yarn manufacturing Alpacas see something unique in a beautiful Italian who knows what works best in supplies (spinning natural setting and Carol, Darcy and the their situation. That’s why we will always wheels, carders, ball spinners, etc.), they supporting cast provide something for keep a niche as an exporter of tops to also sell everything from finger puppets every taste both at the ranch and on their supply many of the emerging markets of for children to blankets, scarves, comprehensive website, which the world and countries who want to delicately woven shawls, sweaters made underscores a second motto that was develop their own finished products.” of baby alpaca yarn and custom jackets often quoted by Ken Weisner, “If you He continued, “When you look at the that amount to art pieces for adult have a wheel barrow you need to push it world, it is important to realize most customers. More than 140 products are to get the work done.” countries have some kind of fiber trade. offered in the ranch store and on their It may vary from very developed to new website, and classes and seminars are Multi-faceted Marketing Approach and experimental. Economics, offered on a regular basis. Merchandise revenues are about evenly technology, money for investment, divided between The Victory Ranch store fashion awareness and creativity all play What’s Unique and website sales. Carol Weisner: parts in how these markets develop. The Mora New Mexico lies in a beautiful “Combining what we produce from our Italians are known for making their own setting at 7000 feet in the Sangre de own herd of about 200 animals and what

The Camelid Quarterly 2 March 2009 Niche Marketing Success Stories we import from Peru I think to learn and try new things. Sometimes we have yarn covered. We Biggest Honor you get knocked back but as long as you have every color, every Carol Weisner: “We were keep learning, stick together, keep your weight and every style. For featured in the book, Shear determination and your health, things hand spinners visiting the Spirits by Joan Tapper and will work out.” ranch we have pictures of Gale Zucker, but our each of our animals. They biggest honor has been How important are relationships with can inspect the animals and developing this business as a breed associations and fiber choose a fleece by naming family. This is a huge job. organizations? the animal. This has worked My husband Kenny, who You have to always ask yourself who is very well for us.” Depending died in September 2007, was benefiting and if it isn’t you, think about on the age and quality of the the inspiration. He was if you want to be involved with them. animal’s fleece Victory Ranch Manager, Darcy willing to take the chance to NICHE MARKETING Weisner, sitting with the Ranch’s fleeces end up with alpaca BJ, one of the colored develop Victory Ranch. I hand spinners, doll makers, alpacas found in the Victory would’ve never tried it Edy’s Mills Fine Fibres (Canada) Ranch herd of 200. without his lead. Each of us Heather Blanchard/Norris McAuslan and fiber artists. Nothing Darcy is wearing an goes unused, even the intricately woven handcrafted brought something different coarsest skirtings have a shawl made from the ranch's to the table. I have a masters millspun yarn. place, in the rug trade. “We The pattern for the shawl can in business and I made some also like to do business with be found in the book, of the first business contacts Shear Spirit. The Royal Spinnery run by with Peruvians. Darcy has an Rod Daken. We can send him raw fiber art degree and has designed women’s and get back yarns we need. Rod heads up clothing. Kenny was an independent a program that only processes fiber grown thinker with a great sense for developing in the United States.” businesses, which he had done Darcy Weisner: “What’s interesting is previously in Chicago. Now my that many of our hand spinners have daughter Darcy and Mark Bunting run come to know our animals so well they the farm.” will order a particular animal’s fleece over the internet, which is a change in how our What advice do you have for someone home grown fiber is sold. Imported yarns contemplating camelid fiber as a source have sold this way for a long time but, it of income? took more time to develop trust among Carol Weisner: “Don’t be afraid. If you our spinners about the consistent quality have a dream try to fulfill it. Life is short. Heather Blanchard and Norris McAuslan receive the of our own animals.” Have a vision of where you want to go. Premier of Ontario Award for Innovation in Chutzpah helps. Remember the Agriculture in 2008. Economic/Ecological Considerations childhood story of The Little Engine Fiber Products and Animal Management That Could. He kept repeating, “I think I Roving, batting, felt, custom yarns are Darcy Wesiner: “Of course our animals can” as he chugged up a hill that was so six different weights including rug yarns. are a big part of the business, but not the steep it frightened him. Hard work and Edy’s Mill works in 100% alpaca and whole business. Sales, boarding and stud knowledge are your friends. We spent a many blends, including fine sheep, silk, fees are income streams as well. We are lot of time in Peru and after awhile yak and angora. They receive fiber from also self-contained in terms of feeding became good friends and business every province in Canada and from the costs. We have fifty acres associates with people United States. Clients commonly send dedicated to growing hay. who designed clothing five to ten pounds of raw fleece but they We use our manure to with us and would some times process 200 pounds in a fertilize the hay and are respond quickly after single order. Volume varies from year to working towards organic receiving an email. We year with many repeat customers. farm certification. The also have many good animals also have pasture. relationships with people Why are you involved in fiber The combination of our here. Cultivating processing? natural pastures and relationships is very Heather Blanchard, the co-owner in the forage production means important.” mill, bought some alpacas and began going our running costs are “We’ve been involved to seminars and meetings. Heather: much lower than they in alpacas for nineteen “We’ve been operating the mill for about would be if we had to buy Superfine handspun yarn from Victory years. When we started six years. We are from a farming hay or pump water to Ranch. Each skein has a picture and the we knew nothing about name of the alpaca from which it is background so we think of what the animal irrigate for 200 animals.” made. (this can be used as a dye lot). fiber. We kept wanting

The Camelid Quarterly 3 March 2009 Niche Marketing Success Stories

our case my partner, relatives, and I have though Pendleton Mills, one of the the combined skills necessary to adjust the longest running mills on the West Coast. machinery for the custom work we do.” The Cooperative’s product line consists of blankets, rugs, and socks. Larry McCool: What causes frustration? “We collect up to 6000 lbs (2727 kg) a Heather Blanchard: “We try to help year.” The organization has been people through educating them, which operating two years. The first year they can become tricky. People sometimes buy made 100 blankets, the second year 575. animals based on what they are told is the Leg and neck fiber usually goes to make quality of the fleece. Fleeces change over 4’x 6’ rugs that are Southwestern in style. time, and in some cases just aren’t what they’ve been told they were. Coming to Niche grips with that reality can be difficult. The Pacific Northwest Llama Fiber Cooperative LLC believes they are the Attracting Customers only commercial entity in the United Some of the unique felted items produced at Edys Mills. Internet, word of mouth, and attending States solely processing llama, and they is supposed to produce. We became alpaca shows. are proud of it. interested in making products as our herd began to grow. There wasn’t enough going About competition from South How does the organization work? on with processing, so we decided to do it American sources Larry McCool: “We have an open ourselves. We bought a Belfast mini-mill Heather Blanchard: It’s the reality. They membership for anyone owning llamas and learned how to adjust it for custom are out there, but it is possible to in North America. Fifty-two farms orders. We soon found others wanted us to develop your own niche. belong and contribute fiber. There is a process their fiber as well.” nominal membership fee for a lifetime About belonging to organizations membership. Currently our members Niche Heather Blanchard: “We belong to the are spread over Montana, Idaho, Oregon Heather Blanchard: “Our niche is Alpaca Fiber Co-op (AFCO), which has and Washington. All the big ranches in forever changing. It is important to been up and running for two years. This Oregon belong. We have a five member remain flexible and open minded. For is a new organization made up of people board of directors. Nobody is paid and example, creative new pieces of involved in processing. We help one there are no employees. Everyone sends equipment are developed that allow us to another and it’s worthwhile for all of us.” their fiber to a centralized collection expand our capability to embrace a wider point. We then grade the fiber into four range in the products we can make.” NICHE MARKETING classes based on handle. Our graders rely What’s most rewarding? Pacific Northwest on tactile skill to determine the four Heather Blanchard: “We won the 2008 Llama Fiber classes and visual skills to separate the Premier of Ontario Award for Innovation Cooperative LLC fiber into different colors. We take about in Agriculture. (In Canada the Premier is (United States) 1,200 pounds (545 kg) to the mill at time the head of a province, much like a Larry McCool and processed around 6000 pounds governor of a state in the United States). (2727 kg) last year. Members get back We are proud of the award but there are Fiber Products what they put in. For example, if you Larry McCool other rewards, like learning new techniques The Pacific Northwest Llama Fiber contribute 5% of the fiber you get 5% of and watching people become excited when Llama Fiber Cooperative LLC the profit. Members can also buy a fleece is made into a quality yarn. Cooperative LLC processes their fiber products at wholesale prices.” Processing has also helped us with our herd selection. We now know what works best and adjust our breeding program to get the fleece types that give us what we need. We have a saying, ‘Quality in quality out.’ ”

What advice do you have for someone running their own mini mill? Heather Blanchard: “It’s a big commitment of time and money. Do as much research on the technical aspects of processing as possible before committing to a particular direction. There are many approaches to what you can do. It also helps to have mechanical know-how. In Llama fiber blankets Llama fiber rug

The Camelid Quarterly 4 March 2009 Niche Marketing Success Stories

Have association with other organizations helped? Larry McCool: “Yes, the Williamette Valley Llama Association has supported all kinds of research and learning about llamas. Many of our members also belong to that organization.

Rewarding Larry McCool: It is a great feeling to see Socks produced from Llama fiber and specifically this get off the ground. People are labeled as being from the Pacific Northwest Llama Fiber Cooperative LLC feeling positive about fiber. We are moving forward. How The Pacific Northwest

Cooperative, LLC was created NICHE MARKETING Larry McCool: “I was raised on a farm. I yarn employing the worsted system. believe that livestock needs to produce UK Alpaca (England) Grading is probably the most important something. I was attracted to llamas and Chas Brooke and Rachel Hebditch aspect of yarn production. As production have owned them for twelve years. We is a serial process involving at least eight could pack with our llamas or take them major functions between raw fiber and to shows to get ribbons. A judge might finished balled yarn, a failure of any tell us our llama had good fiber, but this process will not be easily correctable, if really wasn’t developing a product. You at all. The excellent handle of our can’t live on acknowledgment alone. finished yarn is a reflection of the quality People would win a ribbon and haul their and consistency of our grading process” fiber to the dump. I decided to organize llama growers into utilizing their fiber. At Formulas for blends first it was difficult to convince people. Chas Brooke: “The blend we choose Fiber Products Kay Patterson was our first paying depends on the use of the yarn. For example, member. This helped a lot. She is highly Blended alpaca yarns. Brooke and our sock yarn is blended with nylon or wool. respected and seen as the founder of the Hebditch buy raw fiber from fifty farms Our hand-knit yarns are blended with Blue llama business in the United States.” in England and process it themselves. Face Leicester and our baby yarn is blended They make hand-knit yarns, which they with silk. Nylon gives more wearability. The How do you get new members and sell as 100 gram-balls with a 265 meter Blue Faced Leicester gives finished yarn attract customers to your products? length per ball. They produce five colors more loft and helps hold alpaca together. Larry McCool: “Our members bring in of yarn in three grades plus dyed yarns. In The silk helps emphasize the wonderful soft new people and we go to shows to sell their first year they processed three tons. and silky feel. We are unable to blend the our products. We’ve just put up a black alpaca, as there is not other natural website too.” solid black fiber available to us.” Rachel and Chas have their fiber Processing helps llama raising processed at a single, long-established mill Larry McCool: “We’ve learned a lot to assure consistency. They find about fiber now that we are in the themselves attending trade shows outside processing business. The most expensive the alpaca community, where they are llama I ever bought didn’t have very good commonly competing against wool and fiber. I’ve learned from my mistakes and specialty fibers from around the world. so have others. Members of the co-op, Chas Brooke: “We feel we are competitive including me, are now paying more with Peruvian yarns in price and quality.” attention to fiber quality, with a good idea of what quality really is. This influences Does their effort include involvement animal selection and breeding.” in alpaca breed association efforts? “Absolutely not, This is a private business Advice for llama breeders that makes a consistent product.” Larry McCool: “Be careful in selection of Two years later they processed six tons. The clearly labelled double knit yarn animals. Learn about the lineages. Young produced by Vulcombe Mill Animal ownership animals can fool you. Their fiber can Animal sales is a big part of our business change fairly drastically as they mature. The devil is in the details and it keeps us in contact with sources Use all of the fiber not just the barrel cut.” Chas Brooke: “We process hand-knit for the fiber that we process.

The Camelid Quarterly 5 March 2009 Niche Marketing Success Stories

NICHE MARKETING in a zone larger mills won’t touch sometimes learning the truth is a because they would have to adjust their sensitive issue. If it is going to rub Starry Nights Mills (United States) machinery more than they’d like. We against someone’s skin, it does make a Blair Timmerman have around 100 regular customers and difference if the fiber is 22 microns or 35 process around 2,500 lbs a year. Five lbs microns. (2.5 kg) is our most common order though our orders range between five As a mini-mill operator do you feel and eighty lbs (2.5 – 36 kg). Our other threatened by the large Peruvian Mills? niche is to consistently produce a yarn “Not at all. I have a niche they don’t that is strong but with a handspun look. want and we both promote alpaca fiber” We have a style of yarn that has consistent highs and lows as it rolls off What is the key to success in operating the ball. I call it alpaca yarn with a little a mini-mill? character. The people we attract like this Blair Timmerman: “First, it really helps style.” if you’re mechanically inclined. I happen to have a degree in engineering. I Blair Timmerman (owner and operator of Starry Why did you become involved in fiber brought this aptitude to running the Nights Mill) whose market niche is in fulfilling small orders. processing? mill, which has helped me a great deal. I In 2000 the Timmermans had a herd of wouldn’t be able to adjust my equipment Fiber Products alpacas so they joined a large fiber co-op to cater to the differences in fiber from Mini-mill operator in business for 9 years. that sent them thread when they one small order to the next without my Makes roving, three different two ply yarns expected a particular type of yarn. Blair background. It is also important to (finger weight, sport weight, worsted Timmerman: “No matter what quality carefully research the types of mills on weight) and felted material. All products of fiber you sent them they wouldn’t the market. I work with a Belfast Mini- are 100% alpaca. Works with hand guarantee what they’d send you in Mill but there are other good brands as spinners wanting raw fleece made into return. So we bought our own well. There are also reconditioned older roving. The grade produced is dependent equipment to fulfill our needs to make mills left over from the textile businesses on the quality of fiber received from our own yarns. It wasn’t long until we that used to populate the East Coast. customer. were processing fiber from farms from The mistake I’ve seen made a few times all over the place.” is hand spinners will buy a mini-mill and Catering to the customer won’t realize the skill requirements for Starry Nights Mills won the AOBA Mill What is most rewarding? hand spinning and keeping the of Year Award 2003, which was the only Blair Timmerman: “Winning the award, machinery used in a mini-mill running time AOBA awarded a privately run mill. in the only year AOBA had an award was are different. The last ingredient for The award was given for the consistent encouraging. But what really makes me success is enjoying it.” manner in which Starry Nights Mills feel good is the feed back from customized orders to fit the need of its customers. It is fun to watch people who Did you find large alpaca associations customers. Blair Timmerman: “Our first bought some alpacas go through the helpful? question is what are your goals. transition of really realizing what the Blair Timmerman: “The big associations Experienced fiber artists often know animal is designed to do. Watching have little interest in small mills. After I what they need. I’ll customize the weight people light up for the first time to the won the award at AOBA they wouldn’t to what they want. With inexperienced wonderful yarn that came from their run an article about it. My guess is the customers I’ll create a variety of animal is a great feeling.” decision makers realized that they had products for their ranch store: roving, just given an award to a private business and different yarns. However, the What is the most frustrating? competing against their national co-op. worsted weight seems to be the most Blair Timmerman: “It is frustrating I’ve learned that creating your own sought after. Worsted, as a grade, is a dealing with people who have it set in smoke, blazing your own trail works little heavier, meaning making a knitted their mind what their fiber will be made best. My relationship with organizations product like a sweater is less intense than into, despite how coarse it is. Processing is as an educating influence. I’ve hand knitting with a lighter weight. options are contingent on the quality of dedicated a lot of time and effort to People learning to knit prefer worsted the fiber. A conversation about the processing fiber and learning about how weight. I consider it the most versatile properties of a fleece or group of fleeces to do it the best way I can. I’ve been yarn.” usually gets everyone going in the right invited to speak at many meetings. The direction, but sometimes people are so more people learn about processing, the Niche insistent on what they think they need better their fiber will become, which is Blair Timmerman: “Our specialty is that we make it for them and they aren’t good for them and me. I try to get processing small orders and making as happy as they could’ve been. There people to assess their fleeces for its what the customers wants. We operate are processes for coarse fiber but processing qualities.”

The Camelid Quarterly 6 March 2009 Niche Marketing Success Stories

What differences have you seen in the Why are you making products? Colour and design is no longer a question. alpaca business during your nine years Mike Herrling: “It was clear from the start Production cost is reduced to only a few of involvement? that we needed to do the work ourselves to steps. Animal fibre duvets are considered When we first came in we felt we were in make money from our fiber. In order to the best selling niche product, because a minority for being primarily interested succeed as a fibre animal breeder and small traditional down duvets are getting more in processing fiber. People were interested scale fibre producer, you need to vertically and more expensive and the disadvantages in breeding and selling animals. In recent integrate your business, meaning, you of oil based plastic fibres are well known. years we’ve seen much more interest in need to be involved at every step from processing. This is a shift.” breeding for good quality fleece, to fiber What’s most rewarding about working processing, product creation, distribution, in camelid fiber products? NICHE MARKETING and sales. If you are not producing good Mike Herrling: “Experiencing our Alpaca D’or fiber you cannot create a good product. In customers’ enthusiasm for alpaca fibre (Germany) small cottage industries preserving a products has been very rewarding. To Frank Nasemann certain amount of independence from the actually see and feel the product created Mike Herrling big boys is of utmost importance.” through your daily work is even more rewarding than actually seeing the Fiber Products What is your niche? monetary success of the venture. In our Top of the line classic Mike Herrling: “As long as we breed case, knowing that you will sleep under alpaca duvets in all Mike Herrling alpacas, we will produce alpaca clothing your own product, something that you commercially known and other products like the duvets. The accompanied from growing on the animal sizes. Mike Herrling: Our product line biggest problem has been finding enough to its final destination, makes you happy consists of the “Comfort Line” with fibre of the same colour and quality. A to get in bed. We always believed in alpaca fleeces between 20 and 27 microns and second challenge was to find a regional fibre as something really special. We are the “Luxury Line” with fleeces happy that we found our unique below 20 microns. Both lines product.” are available in spring/summer and fall/winter duvets. The How important is knowing product itself is ultra low in your culture (or country) in weight, thermo regulating (no developing product? sweating), anti-allergic and self Mike Herlling: “It is an absolute cleaning. must to know the culture of the country you develop products for, Contacting Customers because it dictates product Mike Herrling: “Our primary specifications. South American focus is breeding alpacas. On style sweaters are nice souvenirs, the animal side, our primary but often low value clothing when marketing tools are magazine sold in Europe. In the duvet ads and the internet. For the business, you need to know the duvets we use sales personnel “sleeping habits” of your target to present our products at bed country. In several countries, and furniture stores across spouses sleep under a single duvet, Germany. We have created a while in others they prefer their nationwide sales network.” own. That dictates the sizes that you offer. Like in all businesses Product Development you need to do solid market Mike Herrling: “Initial tests research before you commit any were done in 2006. money to production.” Developing consistency and final product specifications were producer willing to process small amounts What advice do you have for others completed in 2007. The official of fiber and yet to produce enough yarn to contemplating doing developing fibre company launch was in February 2008. produce a reasonable collection of products? Within 9 months Alpaca D’or processed clothing. Every year we were confronted Mike Herrling: “First of all, whatever almost 2.5 tonnes of fibre, collected with the same problems:Which designs you produce, avoid going into direct from 12 farms in Germany. We and colours will be in fashion, and which competition with somebody who has a produced mono (spring/summer) and sizes do we need to produce so we do not larger capacity than yourself. Join forces duo (fall/winter) weight duvets, have large amounts of leftover inventory? with people who know the particular depending on the season. By Christmas With alpaca duvets, we only need to market. Be careful about joining 2008 we were sold out.” separate the good from the bad fibre. cooperatives. They are often not flexible

The Camelid Quarterly 7 March 2009 Niche Marketing Success Stories and may not be able to deliver an Also, farming and dehairer which is the machine that economic reward to the fiber producer. guanacos requires removes hair and vegetation from the Do something special and unique and higher fences and fiber. I realized that this area was the avoid copying product lines. If you have reinforced aisle ways. bottleneck in the fiber processing in the a good product, find a way to market it, Handling wild mill, which is why many mini-mills before you start to advertise. Always go guanacos can be either do not have these machines and for products that are custom made challenging. they send the fiber back as they received instead of large off the shelf products Maintaining genetic it, lots of vegetation or they charge per were you need huge storage capacity. diversity can be pass through the machines. And finally, have a good exit strategy; demanding because I wanted people to receive the nicest yarn one day you might need it. of the rareness of they could without spending their lives guanacos in the UK getting the fiber clean themselves. So I NICHE MARKETING and the inbreeding of traded in my small fiber separator and Luxurious scarf made zoo stock, which is purchased two of the largest fiber separators Esgyrn Farm from guanaco fiber. (Wales, United Kingdom) the primary source of and de-hairer machines mini-mill builds. Ray Lerwill and Robin Pratt guanacos outside of South America. The average fleece takes four passes through Fiber Products Though guanacos are not an endangered the large machines to get it clean. We do not species like vicunas, laws governing the charge anything more for this service. People transport of wild animals between need to be aware of this because when they countries are often different than the compare prices they may not be aware that rules governing ‘domestic animals’, the while some mini-mills may seem to have the classification for alpacas and llamas. same price per pound for say sport yarn, their price is not actually the same since we Economic Considerations include getting the fiber run through the Guanacos are large animals (220 fiber separator and de-hairer without a per pounds/100 kg) with a low but valuable pass charge or per pound charge.” Ray Lerwill with his Guanacos annual yield (380 – 750 grams annually). Guanaco scarves that are sold in Feeding costs and housing need to be What aspect of the milling business boutique shops in Europe, primarily in carefully considered. With the guanacos consumes the bulk of your time? Italy. Scarves retail for $450 (USD). low fleece weight it takes a sizeable herd Dave: “One of the activities that takes time is to produce enough fiber for sustained explaining to people about processing yarn. I Breeding practices and production goals processing. Esgyrn Farms is a large often get asked, "If I have a not so nice fleece Ray Lerwill: You can expect close to 750 operation. Their expansive, verdant can I combine it with cria fleece to make the grams of undercoat from many of our natural pastures helps considerably on yarn softer? The answer is no, you will just animals. The majority of wild ones in feed costs, and allow the guanacos the make lumpy, bumpy yarn. The critical part South America produce about 380 space they require for successful housing. about processing yarn is the consistency of grams. Diet and breeding account for NICHE MARKETING staple length of the fiber and fineness you are the difference. Guanacos coarsen very starting with. If the fiber itself is varying even slowly and chulengos (young animals) A Simpler Time- Alpacas & Mill on one animal more than 1/2 inch it will have an undercoat near 13 microns, (United States) affect the yarn. This difference in length will which is comparable to vicuna. Adult Dave and Barbara Davies make the yarn lumpy. When this happens we undercoats usually are below 20 microns have to take a lot of time using a special air their entire life.” Range of services offered joiner that removes the lumps and rejoins the Fiber processing - yarn, roving, batts, yarn. We use quality control to make the Why guanacos? and felt sheets. Stud Services, agisting, yarn to be the nicest we can get it but this Esgyrn Farms founder Robin Pratt first animal sales, sales of finished alpaca means that you lose even more yarn. So in farmed red deer, but after studying the goods, Schacht Spindle company the final analysis, you will have sent in a lot potential of guanacos with their low spinning wheels, looms and accessories. more fiber than you will get back in yarn.” micron undercoat switched to guanacos about twenty years ago. How would you describe your business niche? Special Challenges Dave: “I once heard a mini-mill owner Guanacos are wild animals. Esgyrn Farms say, ‘They send it to me dirty, so I'll send shears a herd of between 300 and 450 it back to them dirty.’ I wanted to save guanacos annually. They have designed a people time. People told me stories of hydraulic shearing table that humanely spending days on each individual fleece restrains each animal while it is shorn. working with the fiber to get the Rachel Davies running the fiber separator and vegetation out. I bought a fiber separator dehairer at A Simpler Time-Alpacas and Mill

The Camelid Quarterly 8 March 2009 Niche Marketing Success Stories

Possible pitfalls in setting up a mini-mill? able to get our backlog down to 2-3 the fineness, the tensile strength, the density, Dave: “Debt. Many mills borrow the money months. Our challenge now is getting fiber curvature, and the staple length of your to buy the equipment since the equipment is processed when people need it. Rather fiber. These are the areas that sell alpaca very expensive and then they go into than just sending fiber in to our mill and fiber from a processing point of view.” business hoping to get enough business to waiting for our back log to get down so we pay off the debt and make a living on can start their order and wondering when How do you attract business? processing the fiber. They do not realize the yarn will be back to them, we have Dave: “We did one mailing in CA when how absolutely labor intensive the process started a new program called "save a spot." we first started, just to let people know is and they just can't process fast enough to Now a farm can select a month they want we were in business, and from then on pay off the debt and make a living.” their fiber to be processed and we will word of mouth has built our business process their order that month. They can from California to Wisconsin and, as of What has helped the most in see details about this program on our this year, it looks like to Florida too.” developing your business? website at www.simplertimemill.com Dave: “Teamwork is one of the keys to How long in the fiber milling business? making our mill successful. Our family And the biggest rewards? Dave: “Six years.” works together to make our business Dave: “One of the biggest rewards has successful with my wife heading up the been the look on people's faces when they Summary animal care and selection and I head up the get their yarn back. Our customers have I felt a positive outlook and sense of mill processing, while at the same time we told us over and over again how beautiful satisfaction from all the people interviewed make all our decisions together. Our their yarn is and how pleased they are, for this article, and learned that beautiful, children also work with us in the business.” when the yarn comes back from our mill.” useful products are being made with camelid fiber all over the world. There are Why did you pick fiber processing as Briefly, what advice would you give to many more outstanding producers than something you wanted to pursue? someone wanting to get involved in could be included here. At last we are Dave: “We picked fiber processing some aspect of processing? harvesting the wealth of camelid fiber. The because I have over twenty years Dave: “Enjoy it! Whatever aspect of viability of raising camelids as a profit- experience in manufacturing. These are fiber processing you choose: designing making form of livestock outside South just different machines. All of my fabric, knitting hats, or weaving rugs. America will be ensured by this type of manufacturing experience is put into this Enjoy it! If you really enjoy what you are ingenuity and hard work. business and we can do this business as a doing it won't be work to you. Don't do family. I get to be at home with my wife something just to make money. If you CQ and kids and the industry needed quality choose something just to make money, About the Author fiber processing mills.” you will hate it after awhile.” Eric Hoffman is the primary author of the second revised edition The Complete Alpaca Book, What have been the biggest challenges? What are the strengths of alpaca and (Bonny Doon Press, 2006). He wrote the first Dave: “Our biggest challenge has been where can alpaca be improved...from a scientifically based alpaca registry (today known as ARI) in the world and is author of hundreds of balancing processing fiber with re-building processor’s point of view? articles on all four species of camelids. our house. Our home burned down in the Dave: “Alpaca has a beautiful handle. When His articles have appeared in International Cedar Fires in San Diego in 2003. We just you touch alpaca fiber you can tell you are Wildlife, Animals, Pacific Discovery, California finished rebuilding our home in September feeling something much nicer than many Living, Wildlife Conservation and many other of 2008 which is almost five years later. For other fibers. Don't get into worrying about publications. His speaking engagements on the last five years I was very busy dividing pretty bold crimp because from a fiber camelids have taken him to many places including my time between fiber processing and processing point this makes no difference. Australia, New Zealand, Sweden, Switzerland, rebuilding our home. Now we have been Concern yourself with the luster, the handle, Peru, Germany and England in recent times. Contributors

Victory Ranch Pacific Northwest Llama Fiber Starry Nights Mills Esgyrn Farm Carol and Darcy Weisner Cooperative LLC Blair Timmerman Ray Lerwill/Robin Pratt Highway 434, Mora Larry McCool 23100 NE Mountain Top Road Gwaun Valley New Mexico 87732 President of Board of Directors Newberg, Or 97132 Llanychaer Fishguard Phone: 575-387-2254 Fax: 575-387-9005 3769 Jefferson-Scio Avenue Email: [email protected] Pembrokershire Website: www.victoryranch.com Jefferson, OR 97352 Ph. (503) 538 5673 Wales, UK Email: [email protected] Phone: (541) 230 0191 Toll Free: (888) 317 9960 SA659SA Email: [email protected] Ph. (01348) 872670 Edy’s Mills Fine Fibres Alpaca D’or Heather Blanchard/Norris McAusland Classical Mile End Farm Frank Nasemann/Mike Herrling A Simpler Time- Alpacas & Mill 4336 Edy’s Mill Lane Chas Brooke and Rachel Hebditch Upsteder Str. 31 Dave and Barbara Davies RR2 Oil Springs Vulscombe Farm 26409 Wittmund 1802 Alta Pl. El Cajon, Ca. 92021 Ontario NON IPO Pennymoor, Tiverton, Devon Germany Email: [email protected] Phone: (519) 692 9430 EX168NB, United Kingdom Phone: +49.4973.913511 Web: www.asimplertimemill.com Website: www.alpacascanada.com [email protected] Fax: +49.4973.913512 (619) 579-9114 Email: [email protected] Ph: (01348) 872670 Web: www.alpaca-dor.de eMail: [email protected]

The Camelid Quarterly 9 March 2009