SafeHouse Farm Alpacas

August 14, 2012

By: Jim Tomaszek

Making Money with Alpaca Fiber

Alpaca Fiber for Profit

Alpaca Fiber for Profit Course


Module 4: How to Make Money with Alpaca Fiber
The Alpaca Fiber Value Chain




By
Jim Tomaszek & Peter Lundberg
2012

Note: This material is presented as a support for the alpaca industry and is not verified by any administrative or authoritative body or by AOBA at present.


Contents
A. The Scope and Overview of This Module 6
1. Demand, Supply And A National United Effort 6
2. Separating Fact from Fiction 7
B. The Current State of the North American Fiber Market 10
1. History 12
2. Background 12
3. What is the current status of the North American Alpaca Fiber Market? 14
4. The “Cottage” Industry 14
a) Example of Cottage Industry potential profits using mini-mill strategy and assertive farm store selling: 14
5. Custom Mills 15
6. Challenges To Building A National Alpaca Fiber Market 16
a) Breeder Competition 16
b) Shearing Problems 17
c) Perception 17
d) The Commercial Fiber Industry 18
e) Transporting Fiber To and From Processing Centers 18
f) Brand Identity 19
C. Building an Alpaca Fiber Industry 19
The Alpaca Fiber Supply Challenge – Perception versus Vision: 19
1. Breeding for Fiber 21
2. Fiber Management 21
3. Harvesting 22
a) The Alpaca Fiber Demand Challenge – Rarity, Value & Customer Education 22
D. The Niche Market – Finding our Sweet Spot: 23
1. Breed Standard 23
2. Brand Identity 23
3. Industry Information Portal 23
E. Alpaca Fiber for Profit 24
1. What is Value-What is Profit? 24
2. Cottage Industry or Commercial? 25
Most North American alpaca products currently retail value at over $50 per pound. 25
a) . The Cottage Industry 25
b) . The Commercial Industry 26
F. Alpaca Fiber Cooperative of North America (AFCNA) 26
1. About the business: 26
2. Fiber requirements: 26
3. Products: 26
4. Cost to the fiber producer: 27
5. Income to the fiber producer: 27
6. Contact Information: 27
G. Alpaca Blanket Project (ABP) 27
1. About the business: 27
2. Fiber requirements: 28
3. Products: 28
4. Cost to the fiber producer: 28
5. Income to the fiber producer: 28
6. Contact Information: 28
H. New England Alpaca Fiber Pool (NEAFP) 28
1. About the business: 29
2. Fiber requirements: 29
3. Products: 29
Cost to the fiber producer: 29
4. Contact Information: 30
I. North American Alpaca Fiber Producers (NAAFP) 30
1. About the business: 30
2. Fiber requirements: 30
3. Products: 30
4. Cost to the fiber producer: 30
5. Income to the producer: 31
6. Contact Information: 31
J. Ingrid’s Hand-Woven Rugs Inc. (Texas Rug Project) 31
Contact Information: 31
K. Commercial Value Comparison 32
1. Non-Retail Commercial Use: 32
L. Retail Commercial Use: 33
1. Estimates for 2010-2012 33
2. Our alpacas are doing their job (growing fiber)--are you? 34
M. Future Goals 35
1. Create a National Fiber Market 35
2. Transportation Consolidation 36
3. Breeding Fiber For End Use 36
4. Creating “Value” For North American Alpaca Fiber 37
5. Creation Of A Fiber Information Portal 38
N. Summary 39
1. Industry Standards 39
2. Breeding For Fiber That Is Consistent With End Product Needs 39
3. Care Of The Alpaca--Environment Impacts Fiber 39
4. Shearing 39
6. What Is The Intended End Use? 40
7. Transportation 40
8. End Product--Building Value 40
9. Get Your Fiber Out Of The Barn! 40
O. Appendices/Case Studies 41
Appendix 1: Case Study – New England Alpaca Fiber Pool 41
Appendix 2: Canadian Fiber Harvest Code of Practice 43
Appendix 3: Canadian Fiber Coop (Your Fiber – Your Future) 57


A. The Scope and Overview of This Module

1. Demand, Supply And A National United Effort

We, as breeders, have enjoyed higher than normal margins for creating seed stock for many years. But the natural maturing of the American alpaca industry coupled with a fluctuating American and world economy is impacting our seed stock and breeding revenue streams. We need to diversify; seek new markets; modify our income models.

We are viewed by many as a disposable income lifestyle bubble without a product. Now is the time to begin the process of branding, standardizing, marketing and selling that product. Right now we could be viewed as the tail wagging the dog. Additional revenue from our alpaca fiber harvests will provide alpaca breeders with revenue in poor economies as well as attract potential breeders and stimulate breeding sales by offering both animal and fiber sales as potential revenue. Our breeding model is maturing. Our fiber model has not. Robust profits from former years have priced many potential new breeders out of the market. More breeders will bring a larger national herd. There will still be profit from selling at lower prices, but also to a much bigger and healthier market.

The opportunity to lead and structure a fiber market while it is in its infancy will be challenging, but at the same time, both exhilarating and ultimately profitable. This is where the emu, ostrich, llama and tulip ‘bubbles’ fell short –a failure to structure sales and marketing channels to their benefit, brand their products, and standardize processes for their products.

Manufacturers, distributors and retailers are expert in exploiting the value-rung below them and therefore alpaca fiber producers should not expect premium margins unless we manage the value chain in which we compete. This is where the cashmere market began to falter from the breeders’ perspective. Outsiders added the value (fashioned product) and took the lion’s share of the profit.

Have you heard these before?

? ‘It’s About the Fiber.’ This is a common slogan in the alpaca business we all give a nod to.

? ‘What do you do with the fleece?’ This is a common and often embarrassing question asked by potential customers and sadly, breeders alike. This is the two-ton elephant in the room that evokes excuses, misinformation, or silence.

? ‘We’ll need a million alpacas on North American soil before we can even think of starting a viable North American textile market.’ This is a statement that has stifled numerous grassroots efforts from taking the lead in building a national alpaca fiber market.

Value your fiber. There are numerous outlets that will accept your donation of shorn fleeces. Do not under value it by throwing it away. If you are interested in establishing a fiber business as part of your alpaca farm, there are many avenues open to you. You can sell raw, skirted fiber to hand spinners. You can process fiber yourself or have it processed by a mill into one of many forms: roving or batts for hand spinners and felters; yarn for knitters, crocheters and weavers; or felt sheets for needle felters and other crafters.

How do you sell your products? Again, you have a number of options. If you are not interested in setting up a retail business, you can sell your products wholesale to craft, clothing, gift or yarn shops. In most locations, with minimal effort and expense, you can establish a retail store at your farm. You can sell your products online. Sheep and wool festivals and farmers’ markets are wonderful venues for selling fiber or yarn for handcrafting or for selling handmade products. There are also commercial users of alpaca fiber. These offer a number of options for you to receive income from your fiber.

2. Separating Fact from Fiction
As we hopefully explained in modules 1-3, alpaca fiber is unique, green and deserves a place in North America’s textile economy. It is rare (for now), exotic, deemed a specialty or exotic fiber, and can stand against the best—silk, cashmere, mohair and even against synthetic fibers—in the manufacture and sales of luxurious and robust fabrics.
As of March 2009 there were 22,591 registered alpaca in Canada and 194,758 in the USA as of December that same year. While some of the total 217,349 registered may no longer be living, there are many unregistered alpaca in North America. Estimates place our total alpaca population between 225,000 and 250,000 at the start of 2010. With an average of 5 pounds of fleece per alpaca, North America is currently producing a million to a million and a quarter pounds annually and growing (1,000,000-1,250,000) and throwing at least a third into the garbage.

There is sufficient fiber available for both the commercial and cottage industries to flourish and provide a good source of revenue to alpaca owners. To bring our industry forward and to bring profit to the alpaca owner, we MUST get this fleece out of the barns and sheds and into the hands of the public in a form they will pay for.

We, as livestock breeders of alpacas, must work as partners and not competitors to facilitate a vertical integration between fiber sellers and fiber buyers and beyond to meaningful outlets for alpaca fiber. Currently, there are numerous individual fiber initiatives underway, some very successful, but we are as autonomous islands of self-interest within the world’s largest market economy. We need to harness the economies of scale as well as help build a consistent approach to alpaca fiber as revenue. We need to present a unified front for our yearly national clip and get our stored fiber out of barns and garages and into the North American markets.

There are numerous business models to support and enhance fiber for profit. We must envelop all of them into a working model with various and different points of entry.

Modules 1-3 cover the current and potential value and characteristics of alpaca fiber. This module will address where we are and where we need to go to make a profit on our yearly harvests.

FACT: Alpaca is a natural, eco-friendly product. It is grown organically and therefore contributes positively to the growing 'green' conscientious market. The absence of grease avoids a heavy, chemical-laden scouring process and the variety of natural colors minimizes the need for dyeing. North America has specialized in breeding for color. Alpaca, unlike cotton, does not require pesticides or herbicides to ensure a good crop. Unlike manmade products, such as nylon, alpaca is not a petroleum-based product. The only byproduct of alpaca is its ‘poop’ which we call "Green Bean$" due to their value as natural fertilizer which is slow-release and high in nitrogen.

FACT: The absence of lanolin or grease in alpaca fiber is desirable for those who are sensitive to sheep's wool or allergic to lanolin, and they might be able to comfortably wear garments made of alpaca fiber rather than using polluting chemicals to remove lanolin. Alpaca benefits both the sensitive individual and our environment.

FACT: Alpaca comes in 16 to 22 natural colors (depending on which study you use), a feat no other fleece-bearing animal has attained. Rather than adding dyes and ruining the “natural” designation of the fiber, we need to capitalize on using our colors. Although much of the retail market currently wants white to be able to dye into many colors, this is our specialty and we need to capitalize on what we do best.
FACT: Alpaca is easily dyed and retains its natural luster. Alpaca feels smooth and silky to the touch. The scale-like cells (cuticle), which make up the outer cells of the fiber, protrude half as much as that of the sheep's wool resulting in a smoother, slicker feel. Alpaca is fine, soft and warmer than sheep's wool. The fineness of the fiber is measured in microns (1 micron =1/1000 of a millimeter). Lower micron results in finer fleece resulting in higher monetary value, but only if it is supplied in quantity. Alpaca is strong and resilient, making it an ideal fiber for industrial processing. It is naturally water repellent. Alpaca does not easily tear or pill and is cleaned without trouble. Alpaca has good thermal capabilities and is an ideal product for the North-American climate.
FACT: Alpaca is an elite fiber. It is extremely versatile and is desired by clothing manufacturers around the world. Stains, heavy vegetation, guard hair and very coarse fiber (lower leg, belly) add to the make up of fleeces. Skirting away stains, most of the vegetation and other debris deliver a cleaner fleece for more cost effective processing. Separating the differing sections of fleece according to their attributes avoids spoiling the better parts, which carry forward to the end product.
What we do know as a fledging North American alpaca fiber industry is that much marketing hype as to the benefits of alpaca fiber as the ‘Golden Fleece’ and the “Fiber of the Gods’ has an air of the ‘tall tale’ about it.

FICTION: Alpaca fiber is seven times warmer and stronger than wool. While alpaca may be somewhat warmer than wool, warmth depends on quality of fiber, the textile application and the skill used in producing the end product. What we do know is that compared to like fibers (i.e. wool, mohair, cashmere, etc) alpaca fibers are incredibly strong. They have a much higher breaking point (tensile strength) than like fibers. Also, most natural animal fibers are protein based and made up of numerous overlapping scales, or cuticles. The height of alpaca cuticles is on an average half the height of wool cuticles and it also has fewer cuticles per inch. So when making a product, strong translates into durable and low scale height and fewer scales translates into soft. Alpaca fibers, given their strength, can also be spun into lightweight garments since it takes fewer fibers to maintain strength. Imagine knitting a beautiful garment, which requires more than 100 hours of skillful art and patience to produce. Why use a low-quality fiber that will ruin your work in a short period of time when you can use a fiber that among a lot of other wonderful qualities will last a lifetime and possibly be an heirloom you can pass on to generations to come?

Desirable and notable characteristics for alpaca fiber are:
? Fineness
? Absence of Guard Hair
? Quantity
? Uniformity in fineness and length
? Color
? Tensile Strength
? Staple length
? Cleanliness
? Crimp/Brightness
Sorting fleece sections according to fineness, length color and degree of guard hair achieves uniformity in fineness and staple length, desirable absence of guard hair and consistency in color, which brings maximum financial benefit. Meeting these criteria should be the goal of the producer. Deviations in micron and in length can cause major spinning problems for the processor. Excessive short fibers and second cuts create noils, which will decrease the quality and quantity of the yarn. Guard hair is a major source of the “prickle factor”, tends to shed and does not dye well.
Processors should receive clean, uniform lines of fiber (fineness, length) with good tensile strength in as large batches as possible for cost effective processing into quality yarn.
B. The Current State of the North American Fiber Market

How much fiber (tons) is produced each year in the US? Nobody knows. This answer in and of itself is indicative of where we stand as compared to a balanced and full functioning livestock model.

There are over 200,000 alpacas registered in North America and a large number of non-registered—figure 225,000—250,000 alive. Calculating 5 pounds of fiber (firsts and seconds) per shearing per alpaca gives us an annual clip of 1,125,000 to 1,250,000 pounds. Compare that to sheep, cashmere, wool, mohair, etc. This calculates to 1,000,000-plus pounds of fiber annual yield in the USA. More when we add in Canada.

Weigh the above against these stats:
? Peru has 3million alpacas.
? There are 0.5 million in Bolivia and Chile.
? Peru produces 4,000 tons (8 million pounds) of fiber (of various quality) yearly.
? The worldwide production of cashmere is triple this (24 million pounds).
? 2,000,000 tons (4 billion pounds) of wool is produced worldwide each year.

Currently:
? There is a healthy demand for American alpaca fiber.
? There is a sustainable supply of American alpaca fiber available at least at the niche market level at this time.
? Many alpaca owners and breeders have been making regular profits from their alpaca fiber.
? There are established local, regional and national alpaca fiber sales and marketing channels in place, which are experienced in buying and selling your fiber at wholesale and retail prices.
? Blankets, seconds and thirds have value and can be sold for profit.

Yes, you can make money with your alpaca fiber. Additional revenue from our alpaca fiber harvests will provide alpaca breeders with revenue in poor economies as well as attract potential breeders and stimulate breeding sales by offering both animal sales and fiber sales as potential revenue. Our breeding model is maturing. Our fiber model is now beginning this process.

By working as a team, North American alpaca owners and breeders will:
? Increase the demand for North American alpaca products and build an industry that sells our harvests and turns them into product as one seamless value chain.
? Increase the supply of North American alpaca fiber.

Through the economies of scale, alpaca livestock owners and breeders will:
? Increase our profit margins for North American fiber products.
? Reduce the relatively high price for alpaca products by reducing processing and distribution costs.

Cooperation to compete with all other established livestock and end-product industries will:
? Stop wasting our time and resources in competing with each other.
? Unite our efforts for the success of all of us ... for a real alpaca industry!
1. History
Imperial Incas clothed themselves in alpaca for thousands of years. Many of their religious ceremonies included alpaca. Their mummified remains stand testament not only to he enduring strength and vitality of alpaca, but to its use in early textile production. The Spanish conquistadors failed to recognize the value of alpaca, preferring their native Merino sheep. Early attempts in England to spin alpaca to make cloth resulted in failure until 1836 when Sir Titus Salt came upon some forgotten bales of alpaca in a warehouse in Liverpool. Combining the alpaca with cotton, he introduced the highly fashionable "alpaca cloth," which became the rage of England. However, the native alpacas could not meet the great demand for alpaca wool--initial attempts to acclimatize alpacas to England were unsuccessful--and with the advent of man-made textiles the demand for alpaca waned.

Common uses for alpaca cloth at the turn of the century were fine ladies' dresses, gentlemen's suits, uniforms for military as well as police and fire departments, and academic robes.
2. Background
Alpacas in North American are a relatively new phenomenon. We have about 20 years of experience with these exotic fiber-bearing animals. The alpacas’ ancestors are a native North American species. During the last ice age, probably in a quest for food and warmth, low water levels allowed some of the herds to migrate north over a land bridge between Alaska and the Asian continent. These eventually evolved into the camel (Camelidae). Other herds went south and became the llama (Lama glama), alpaca (Lama pacos), guanaco (Lama guanicoe) and vicuna (Vicugna vicugna) indigenous to South America. DNA testing proves that the alpaca, as we know it, is a close cousin of the vicuna.

Alpacas are rare. The average gestation period is 11.5 months. During the 16th century the invading Spanish wiped out many alpaca in South America, much as the North American bison was in the 19th century. Like the bison, the alpaca is reappearing in North America; the repopulation effort has slowly built an ever-growing North American alpaca herd. Alpacas are becoming a common sight in small acreage farms and large backyards all over America.

For the past twenty years the Alpaca Owners and Breeders’ Association (AOBA) and the Alpaca Registry Incorporated (ARI) have led the charge of introducing and marketing the breeding of alpacas in America. As a result, there are an estimated 225,000-250000 alpacas grazing all over North America. Most of these are registered and a sophisticated infrastructure is in place to support the American alpaca breeder manage their breeding business.

Through the efforts of AOBA and ARI, the North American alpaca has been bred scientifically to encourage desired traits and standards. A highly regarded and healthy alpaca show system, built by AOBA and its volunteers, is in place. The best-of-the-best compete for highly regarded championship ribbons and accolades. ARI tracks ancestry, and those ‘most desired bloodlines’ are easily found and tracked. ARI has launched a formal Estimate Progeny Differences (EPD) program so breeders can track the results of their breeding decisions in the name of ever improving alpaca characteristics. Scientific measurements in the form of alpaca histogram fiber measurements and skin biopsy methods are in place as is breeder understanding, acceptance and usage of these tests.

Scientific research by the Alpaca Research Foundation (ARF), the International Camelid Institute, and Ohio State University (to name just a very few) continues to promote successful health programs and disease research to insure the success of North American alpaca breeders. These programs, mostly donation driven, promote scientific research in the areas of alpaca health, husbandry, genetics and fiber, although fiber research doesn’t receive any funding.

A healthy market for the buying and selling of alpacas and their ever-improving offspring is in place. Websites like AlpacaNation and AlpacaStreet lead the charge. Large and small alpaca breeders alike vie for top dollar for their ever-improving livestock offspring (crias) and breeding fees for champion males (herdsires).

The breeding and management aspect of North American alpacas is a mature industry. We are now at the point in the North American alpaca repopulation effort where we can begin to reap the profits of our initiatives--harvesting and selling of our alpacas’ fiber. Faced with building both supply and demand for alpaca clothing and products, we need a unified national effort to introduce alpaca fiber into the American consumer markets. This is a viable effort; difficult, but viable! We must not continue as competing breeders vying aggressively against neighboring alpaca breeders for profit. This is counter-productive! We must get together not just to sell to each other but also to encourage new breeders to enter the market, expose new breeders to the wonders of alpaca products, explain alternative revenue streams such as alpaca fiber for profit, and show potential new customers (and our fellow breeders) that there is an ‘alpaca fiber for profit’ infrastructure in place today made up of spinners, weavers, felters, crocheters, knitters, fiber artists, mini mills, and commercial users of alpaca fiber – together bringing fun and profit.

A national initiative to introduce alpaca fiber into the American economy will attract new breeders, grow the national herd and help mature farms sell to new customers rather than just to each other. It will also move more fiber into the American markets thus increasing the demand and supply for American alpaca fiber.

We need an end product or we will be simply an entertainment business. If we are just an entertainment business, there is no reason to hype alpaca fiber as being remarkable.
3. What is the current status of the North American Alpaca Fiber Market?
There currently is no commercial alpaca fiber market in place. Why not? Because there was no interest as the buying and selling of alpaca breeding stock was lucrative and was the single focus of alpaca owners. They were a poorly educated breeding group (pertaining to alpaca fiber) unaware of the value in end products

There is currently no national commercial fiber initiative in place. Again, why not? See the question above. There has never been a national plan. (Note: While there is no national plan, there are opportunities currently available to profit from your fiber from commercial venues.)

Are there any alpaca fiber for profit initiatives in place? Plenty. Consider grassroots niche marketing and sales as well as commercial venues.

4. The “Cottage” Industry
The Cottage Industry is currently is the largest user of North American alpaca fiber and is made up of felters, spinners, crafters, artisans, and many, many others. There are numerous venues and many more are available each year as the imagination of alpaca owners is put into play.
Typically this use of alpaca fiber is time intensive and has the potential for high value. If time is considered an expense, the profit may be low.

a) Example of Cottage Industry potential profits using mini-mill strategy and assertive farm store selling:
Let me share my personal numbers with you and see how this helps you. (name available on request)
? Shearing cost per alpaca - $20.00
? Net 5.6 pounds per alpaca (not including thirds)
? So roughly $4.00 per pound for the shearing.
? Help and other shearing cost ( food, bags, labor) $9.00 per alpaca (average) or $1.60 per pound.
? Sorting, Carding (Labor) $2.50 per alpaca or $0.45 per pound.
? Total cost per pound prior to processing - $6.05 per pound.
? Average cost per pound for natural yarn (no dye) $20.65.
? Average cost per pound for dyed yarn $23.50.
? 360 pounds natural yarn $7,434.00
? 250 pounds dyed yarn $5,875.00
? Note: I get felt out of this as well. I am not including batting, roavings into this they are cheaper but I don’t make much of that anyway.
? (you have to remember there is waste to account for and you do not net 100% back, you have to figure that loss into your cost).
? I sell my natural yarn at $8.00 per 2oz, $10.00 for dyed.
? Thus I get $64.00 a pound for the natural and $84.00 for dyed yarn.

5. Custom Mills
Custom mills offer various services and may have differing requirements to process alpaca fiber. Contacting mills and asking questions avoids disappointment and offers some assurance you will get what you envisioned or expected. Some points to determine are:
? Maximum/minimum length the mill is accepting.
? Is de-hairing equipment available and at what cost.
? Is waste fiber returned (which may be useful for felting) and cost of return.
? Does the mill have sample cards of the yarns they produce.
? Get references from other producers who have used the mill.
? Ask for a price list.
? Do they offer felting and at what cost.
? If you are considering an alpaca blend yarn, ask if the mill supplies the fiber to blend with your alpaca, i.e. wool (could be Merino, Polworth, Romney, etc.) mohair, silk, etc., the price and the percentage the mill recommends adding to your alpaca fiber.
? Consider combining similar colored fleeces such as white, beige, fawn; they must also be similar in length and grade of fiber. The larger the lot that the mill has to work with the more products you will end up with. If you have a large amount of fiber to be processed, ask if the mill has volume discounts.
? If possible visit the mill and discuss the possibilities for your fiber, taking into account the mill's capabilities. They may have suggestions and samples of yarns that would work well for the fiber you want processed.
? Take or send samples of various yarns to the mill to showcase your ideas. The samples don't have to be made from alpaca yarns. You might bring a yarn that you saw in a yarn shop that you would like your alpaca fiber made into. Finished garments are also good examples for your mill so they understand how you see your yarn as a 'finished garment'.
? Ask whether the mill is processing Suri fiber, if applicable to your business.
? Determine if your yarn will be returned to you in skeins or on cones. Let the mill know which you prefer and the amount that you want in each skein - the norm is 50 or 100 grams per skein and cones are normally kilo or half-kilo.
? Ask the mill to record the yardage (YPP - yards per pound) or meterage (meters per 50 or 100 grams). These measurements are familiar to most artisans that will work with your yarn.
? Ask for an estimate of turn around time from receipt of your fiber to delivery of your product and timing of payment(s).


6. Challenges To Building A National Alpaca Fiber Market
"You cannot manage what you cannot measure," - Lord Kelvin

How much American fiber is bought and sold annually? Nobody knows. Coops, mini mills, and home businesses are not connected and do not report sales by ROI, pounds processed, etc. This begs the question, do we want a national alpaca fiber-for-profit initiative and its value-added revenue stream to our breeding businesses. If not, you’re done with this course. If so, read on. We need your help. We need to be on the same page, with the same goals, strategies and with teamwork. This can be done. Now is the time!
a) Breeder Competition
“I have met the enemy and he is us," - Walt Kelly
We have a lack of a national breeder cooperative fiber effort. Economic conditions have changed. Fewer customers are coming into the market. We have lack of end products as a revenue stream. This forces us as breeders to market and sell to each other. We become competitors instead of partners in the alpaca business. While breeding healthy and ultra-fine American alpacas in a range of natural colors is a great vision, taking the vision beyond the animal to the potential of the end product, alpaca fiber, is a much more lofty, lucrative and sustainable vision.
We must have quality alpaca – our niche is alpaca - soft, strong, bright, natural, 22 natural colors, GREEN. We need to increase the demand for alpaca fiber. (Educating the consumer here is critical.) There is not a lack of supply of American alpaca fiber. There is a tremendous supply of alpaca that is not being utilized and viewed as worthless by its producers. We must change this perception in the near-term; otherwise, developing a market for this fiber will be extremely difficult. The emu industry (and others) had a similar problem. Breeders must understand the potential revenue for alpaca fiber and what outlets are available and need education to understand the requirements of fiber processors. Textile processors need to understand of the value of alpaca fiber. An attitude of many breeders is that alpaca fiber is not worth selling or should not be sold. There is an attitude that breeders rather than the consumer should determine fiber value. These attitudes need to be re-evaluated.
Estimates of the cost to produce a pound of fiber vary wildly: From $5 to $65 per pound. The world market for alpaca fiber is around $8 per pound for grade 2 processed tops. We need to put true numbers in place and determine where to work towards our best competition.

b) Shearing Problems

One of the fastest ways to ruin otherwise good fiber is to not pay attention to shearing. Many alpaca owners pay big bucks to have the fleece shorn, but do not understand the importance of having it done correctly. Poor shearing causes second cuts, inconsistencies in length, and can leave excessive strong primary hairs (i.e. guard hairs, medullation) in the finer blanket, which has to be skirted out. Second cuts can and do lower the value of alpaca fiber by reducing yield. If a second cuts gets through the shearing, cleaning, skirting, grading and sorting process to the manufacturing process, they can cause noils (knots) or holes in the end product. It is the responsibility of the alpaca owner to insure the quality of the shearing!

c) Perception

There is a perception by some breeders that an alpaca fiber market will reduce prices of breeding stock. Sales in breeding stock have been quite lucrative for years. Concerns over reduced profits as we switch from breeding to fiber markets need to be addressed. With a healthy fiber market the following good things can happen;

First, we need to brand name our fiber as Green, American Quality. As a fiber for profit market evolves, ALL alpacas will be worth something (especially the geldings since their fiber does not generally blow out once gelded). Large and small breeders can make a profit from a real end product. As more people see possible profit from products, the herd size will increase. More fiber farms will be developed and breeders will (we hope) begin to cull their herds – only breeding top males (yes, those expensive elite herdsires will have a role) to appropriate females. This will quickly improve the quality of North American alpaca.

We as an industry will finally have meaningful breeding goals based on customer requirements and not on show ring fashion. We will breed for maximum return on investment and not on crimps per inch.

d) The Commercial Fiber Industry

The North American Commercial Fiber Industry currently has only a few venues available today. This use of alpaca fiber is typically less time-intensive for the alpaca owner. Much of the value added is done after the fiber is sent to the commercial user. However, there is the opportunity for high value and high profit for the fiber producer if they desire to be in retail sales (much the same as with the cottage industry, but without the time intensive need).

e) Transporting Fiber To and From Processing Centers

There is a need to consolidate existing resources for local and regional fiber collection centers. Currently the main shippers normally considered, such as USPS, FedEx and UPS, typically require a single billing point. The standard is to base the charge on the volume of the preceding months or year to give volume discounts.

Rail: Fiber needs to be boxed or bagged (50 gal 3 mil bags), placed on a pallet and secured with shrink-wrap. Requires around a 2,000 pound minimum, but has low cost. Customer is typically given 2 hours to load and 0.5 hours to unload.

UPS: Offers small and large shipping. Large uses LTL (less than truckload). For large shipping, the requirements are similar to rail. Discounts for businesses are typically based on prior-year volume. Single accounts only.

FedEx: They can ship small quantities. One note of caution is that the amounts given on their website (even when using the verification), may not be correct. If the driver of the truck decides that an address is out of the normal delivery area, or not a business, they can add on several charges, including a fuel surcharge.
They will deliver boxes to you free of charge.

USPS: Good for small amounts. Gives discount for online calculation and postage. Typically, it is better to pay by weight than using the flat-rate boxes. They will deliver boxes to you free of charge.

Consolidated Fiber Collection Centers are a worthy goal. We must work towards a collaboration of breeders and commercial users of fiber to form consolidated regional collection sites; shipping in volume is at a fraction of the cost of small lots. Working together benefits everyone and ultimately reduces the cost of doing business, which increases profit.

f) Brand Identity

A national brand for alpaca fiber is discussed in the next section. While recognition by the public at the North American level will benefit the industry, there are a number of problems with implementation.
? Who will “own” the brand?
? Will the commercial users want to pay to add another item to their existing logo/tags/brand?
? Will the cottage industry perceive more value added than the cost of using the “brand”?

C. Building an Alpaca Fiber Industry
The Alpaca Fiber Supply Challenge – Perception versus Vision:
Inherent in this question is the answer to why breeders like me would buy an alpaca for $20k when all I get is 250 bucks a year on the investment. The answer is that no animal itself is worth $20k. Some are worth that and more in potential. Prices are related to the selective breeding potential: The potential quality of the offspring; the potential to infuse the national herd with improved genetics. These few special, rare and high-in-demand, famous alpaca studs and dams are the keys to an imagined elite American herd. Why? Alpaca fiber is classified in the world textile industry as wool fiber. Mills want to ‘fit’ alpaca into their wool-tooled machines. This means alpaca fiber is currently processed on machines tooled expressly for processing wool. Further, these machines are calibrated based on the average fiber diameter of the yarn that is to be spun. For sorted wool to be used as apparel it is almost always under 27 microns in diameter. With an average alpaca fiber AFD of 26 in the US, half of our mill-submitted fiber is over 26 microns and therefore beyond this range. Do we simply grow our collective American herd as is? Do we breed to produce a finer fiber through select breeding goals and improved nutrition? Like many of you, I’m breeding alpacas to improve their fleece – finer, denser, longer and faster growing, consistent staple. I am not herd building (at least not on purpose). I do not believe we will ever be a volume business. Alpacas have a long gestation period. We will always be a specialty fiber, an exotic fiber – but a rare and luxurious fiber. I’m shooting to breed for lingering fineness.

We know from Don Julio Barreda, as he built his B herd focusing on fine rather than big, meaty and high yield, that they eventually became 20% finer but had 20% less body weight and 20% less density. So what’s a breeder to do? We can’t ask what the customer wants – there aren’t many. Sometimes, if the customer isn’t sure what they want but you are, you give the customer what they need.

To touch and then to wear a 100 percent alpaca garment inspires superlatives (i.e., "stronger than mohair . . ." "finer than cashmere . . ." "smoother than silk . . ." "softer than cotton . . ." "warmer than goose down or the new synthetic fabrics like Gore-Tex," and "breathes better than thermal knits.") The really exciting part of these enthusiastic endorsements is that they are all true.

Unlike other mono-color animal fibers, alpacas produce fleece in 16-22 (or more-depending on which study is used) different colors. This amazing spectrum delights hand-spinners and industrial manufacturers and reduces (or eliminates) the need for dyeing, which further protects or enhances the resilience, softness, flexibility, and hypoallergenic qualities of the fiber.

Like many of you, I am taking some pretty extreme financial risks given the miniscule demand for improved fleece at this time. I am not in this business to spend disposable income as a distraction during my dotage. I know that given a market, producing rarity can pay off. Like a vintner improving vines over the years to make a superior wine and enjoying the satisfaction of efforts as well as the vintage, I look out at my small back pasture (actually a large backyard) and envision a herd with an average micron count under 22. Each animal is uniform, dense, full of bright, long, and thin fiber staples with coverage galore. I have to shear them twice a year! It is a herd our customers (mills, spinners, etc) give an A+ to from their production requirements perspective. Our fiber is highly valued by the American consumer for its unique clothing benefits. Coupled with other like-minded breeders’ herds, we now have an American supply of elite alpaca fiber. Without a doubt, once we reach this level there will be a demand for the Fiber of the Gods. Anyone who knows that alpacas fit the ever-growing Green Movement like hand in glove knows of our future success. Did we believe the French when they told us we could never grow superior wine in America? Man will never fly? Sometimes believing is seeing.

Like all dreams, bringing this imagined American alpaca herd to reality will take focus and hard work to bring to fruition. We must all get involved in the entire value chain – from selective breeding to marketing of the end product, either alpacas or fiber products. We have a lot going for us with well-established organizations like AOBA, ARI and our extensive utilization of the Internet – with sites like AlpacaNation and the ever-growing AlpacaStreet as well as our regular brick and mortar of online alpaca auctions, to name a few. We need to properly plan for an ever-growing supply of finer grades and natural colors of alpaca fleece – leveraging nature and scientifically based breeding best practices.

Most synthetic fabrics are oil-based. Alpaca is not. Cotton requires pesticides and herbicides to create good yields. Alpaca does not. We need to educate the public to focus on opening appropriate sales and marketing channels for our product. We need to build demand through advertisement (even wearing alpaca and pointing it out to potential customers will go a long way). We need to carry a strong dialogue with and take an active interest in navigating AOBA’s marketing and sales direction. We need to liberate our mountains of fleece from the barn and get it to one of the national cooperatives, commercial users, specialty mills, and into the hands of our cottage industry spinners. We need to identify the numerous other uses for alpaca and communicate this information throughout the alpaca community.

Competition with wool or cashmere is not needed. Nor should we badmouth these wonderful products. Alpaca fiber stands on its own remarkable and unique merits. We can surely blend our unique American creatively with established fibers to create a never-ending mix of desirable products to meet individual tastes. Ask a spinner, you will find they agree.

1. Breeding for Fiber
Many tools are available to the alpaca owner. As mentioned in the previous three modules, we as an industry are at the point where we know the aspects of fiber, know how to test fiber, and know what to expect from our breeding practices. The alpaca owner needs to decide on the preferred end use of their fiber. This will allow much better breeding decisions that just to breed for “better fiber”.
2. Fiber Management
Care of the alpaca during fiber growth is a vital aspect of insuring quality fiber. Health and environment play as much of a role in fiber production as genetics. New and exciting scientific research is providing us information every year on ways to improve the health of our alpacas and their fiber. They grow it, but we are entrusted to their health, care, and management. It is necessary for the breeder to understand and keep record of their herd's micron production so they can easily determine which fiber can be processed for which products. You wouldn't want to send fine alpaca used to make 100% alpaca blankets to be processed into rugs, nor would you want to send heavy-micron fiber to be made into a sweater. Different microns have different uses. The breeder needs to educate himself as to what options he has available based on the fiber he is producing.
3. Harvesting
The manner in which fiber is harvested is of critical importance in the use of that fiber toward the end product. Many factors come into play, including insuring the animals are dry and clean prior to shearing, providing a clean and safe shearing environment, proper sorting of the primary fleece from the neck and upper legs from the belly and apron, and clearly storing and identifying shorn fiber based on the requirements of the processor(s) being used. It cannot be stressed enough that the breeder must be certain that the shearer understands what is needed and shears the animal to the standards required. Only fiber that is shorn so that it can be used will have value--the rest will be compost.

a) The Alpaca Fiber Demand Challenge – Rarity, Value & Customer Education
The biggest issue we breeders face is that alpaca fiber is rare – about three million alpaca in the entire world with 90% of the global herd in Peru. Alpaca fleece is so rare that there is little demand for it outside the exotic, little knowledge of its softness, its warmth and shine, its potential, and therefore there are few markets for it in America. This is where we as breeders, large and small, need to work as a team. We American breeders are not only building a supply with our national herd, we are building demand along with it. Historically, this is nothing new for us. In 1873, George Grant transported 4 Angus bulls from Scotland to Victoria, Kansas. Grant crossed the bulls with native Texas Longhorn cows, producing calves that wintered better on the plains and weighed more in the spring. The American Angus Association is the largest beef registry association in the world, recording more cattle each year than any other beef breed association. The American Angus Association recorded more than 10 million head of cattle in the association's first 100 years.

Folks, the key here is to get our 1,000,000+ annual fleece yield out of the barn and into the hands of the consumer. This creates the demand we must have to increase profits.

Just think back a few decades ago to family Thanksgiving dinners. There was turkey. As far back as I can remember it was turkey. But turkey is not just for Thanksgiving anymore. Back then who would have thought that the one-day-a-year-bird-meat would be an omnipresent staple in the American diet and a healthy one to boot! It took a lot of hard work to win this battle. Perceptions had to be softly changed. Markets had to be built. Supply lines were choreographed. This took a sustained effort. The point is that we are in the front lines of creating a new industry. It is a case of not giving the customer what they want, but giving the customer what we know they need. Always remember that the customer is always right. If they say no then we are wrong. It is our Golden Fleece.

D. The Niche Market – Finding our Sweet Spot:

We cannot compete, nor do we want to, with long established competitive fiber models either in demand or supply. We are and will be a niche market for the foreseeable future and beyond. And that is our strength. Our goal is to find and agree on the best qualities of alpaca fiber, breed and manufacture to produce the highest quality possible from those traits. Our industry must concentrate on fineness, strength, consistency, brightness, wick water, hypoallergenic and American and GREEN. This will bring the highest return to you, the alpaca owner.

1. Breed Standard
The breed standard for suri is in place. Now we need to consider, what is the ideal alpaca? What characteristics do we breed for as a livestock industry to produce end products customer’s desire from alpacas?

2. Brand Identity
A brand is a trademark; an icon symbolizing specific products and services and differentiates you from your competitors. Examples of brands are:

? McDonalds ‘Golden Arches’ icon and ‘You deserve a break today,’ slogan
? The Coca Cola logo - It's the Real Thing
? The Nike swoosh icon and the ‘Just Do it,”

Note that as a fiber industry we have no alpaca brand. Initiatives are underway to brand alpacas, but we need to ensure alpaca fiber is branded appropriately so national customers will understand what alpaca fiber represents – natural (Green), durable, American, quality, soft, luxurious and rare. An appropriate logo/icon/slogan needs to be put in place. However, just as a good brand can make an item memorable and promote sales, poor branding can be the million-dollar mistake. Just ask Microsoft. The computer giant paid a hefty sum for the use of the Rolling Stones' 1981 single "Start Me Up" as the promotional song for their new product, Windows 95. Few, if any, could ever link the song to the product.

3. Industry Information Portal
Who should be the creator and owner of the industry information portal? We need an organization to bear the cost and therefore receive the revenue potential from the creation and operation of an industry portal. Developing and running a portal should be a relatively minor cost for a project of this scale. The owning organization needs to have substantial commitment to engage the level of partnerships required to move fiber into the philosophic forefront. Once the foundation for the infrastructure is in place, they will realize returns from equity positions received from their partners over the long run. How much revenue can we expect from alpaca fiber? Case studies need built, vetted and published.

Many individual initiatives are currently underway to produce revenue. We must come together to profit from the economies of scale – work as a team to share strategies, operating procedures, case studies, best practices, etc.

One critical issue to overcome is the perception that the owning organization will dictate to whom breeders must deal. It needs to be plainly stated that they will act merely as a clearinghouse for connections between breeders and the end product with all those between that add value.

E. Alpaca Fiber for Profit

1. What is Value-What is Profit?

Per Merriam-Webster, value is: The monetary worth of something; a fair return or equivalent in goods, services, or money for something exchanged.

Profit is: a valuable return; the excess of returns over expenditure in a transaction or series of transactions; especially : the excess of the selling price of goods over their cost.

In this section, the “value” of alpaca fiber is discussed. Some alpaca owners think there is an intrinsic value to their fiber and if it is stored in the barn long enough they will have someone come and give them gold for their fiber. Of course, stored long enough, the fiber will become brittle and of no value except perhaps for compost.

A finished alpaca product has value, but there may or may not be a profit. There is a perception on the part of the buyer and the seller as to the amount of value. When both agree, a transaction can be made. The sales price less cost is profit. The intent is to add greater value than cost throughout the value chain.

The value chain is a process where we add something to the fiber:
? Breeding for the best fiber for the intended end use.
? Controlling the environment as much as possible by giving appropriate feed and shelter.
? Shearing for the end-use product (This part of the value chain frequently ruins much of the hard work and cost put into the fiber. A good shearing job brings maximum profit!)
? Sorting/skirting at the time of shearing.

What is done after this point typically depends on the decision for the future fiber use of the fiber.
2. Cottage Industry or Commercial?
Retail sales typically generate the greatest return. Although a retailer does not need to own alpaca in order to profit from sales of alpaca products, many alpaca owners are already set up and incur little additional expense by adding retail sales. Alpaca owners also have more heart-felt love for alpaca which can make it easier for them to sell alpaca.
Profit on alpaca fiber will continue to increase as more and better products are available to the consumer. Breeding for finer, more consistent fiber and getting this fiber into market will create demand and “value” in the view of the consumer.
Most North American alpaca products currently retail value at over $50 per pound.

a) . The Cottage Industry

The largest profits from the cottage industry are normally associated with time invested and through retail sales.

There are many, many people available to work for you at little or no charge. Take your yarn to a mini-mill and have it processed into yarn. Take the yarn and patterns to your nearest retirement center. Many women are pleased to have a knitting project. They will knit hand-made, one-of-a-kind blankets ranging from baby blanket size all the way up to a king size. For more advanced knitters, provide patterns to make scarves, hats or sweaters. These too are great for home or retail. Just think of all the stores that would love to carry these fine alpaca products.

Check for spinning clubs in your area. They are a great place to sell your fiber. Have your fiber made into roving. This is also a great item for these clubs.

Stores on alpaca farms are a great place to sell your finished goods.

Check out the various fairs, and farmer’s markets in your area. Get on their mailing list. If you cannot be there, find someone who will carry your goods for a commission.

There are many fiber artisans looking for fiber to use in their creations. Felting is used not only in making clothing but in making wall hangings, bags, purses, and hats. We attended one show where the artisan made denim jackets embellished with beadwork, needlework, and alpaca felting! Visit craft shows to find these talented folks.




b) . The Commercial Industry
There are two aspects to the commercial industry. The first is cash paid for fiber and the other is revenue through sales, which has a higher return. However, much the same as the cottage industry, this typically requires more time and involves retail sales.

F. Alpaca Fiber Cooperative of North America (AFCNA)
1. About the business:
Incorporated in 1998, AFCNA is an agricultural cooperative formed and wholly owned by North American alpaca fiber producers.
Finding a way to develop and maximize the value of American produced fiber is what AFCNA is all about. The future is fiber.
2. Fiber requirements:
Accepting blanket and neck fiber. Must send in all or a portion of annual fiber clip as directed by AFCNA
3. Products:
Not all made in USA or North America
Socks, yarn, roving, teddy bears, backpack, scarf, ear rings, gloves, bags, throws, poncho, t-shirt, DVD, pouches, purses, bags, throws, gourds, etc.
4. Cost to the fiber producer:
$250 fee to purchase one share common stock
5. Income to the fiber producer:
In the event there is a net profit margin, members will be paid a minimum of 20% of that margin either in cash or credit towards purchases of products.
There is an anticipated dividend to members for prime fiber under 26 microns for 2010, with an anticipated increase for 2011 and an additional increase for 2012.
6. Contact Information:
AFCNA
PO Box 349
17494 State Hwy 58 N
Decatur, TN 37322
1-877-859-0172 (Toll Free)

G. Alpaca Blanket Project (ABP)
1. About the business:

? The Alpaca Blanket Project (ABP) is a collaboration of American alpaca growers interested in building a lucrative, sustainable, high-end fiber industry in the United States.
? Pay cash for American alpaca fiber. This is one of the main reasons the ABP started business.
? ABP works with Pendleton Woolen Mills to produce quality, 100% American, 100% natural, 100% alpaca blankets and scarves.
? The ABP opened to alpaca farms to send in fiber April 2008. The first (experimental) run of blankets was completed February 2009. Second run produced November 2009 included blankets and scarves. Three runs are anticipated for 2010 and should be available by the end of October 2010.
? Nearly 15,000 pounds of fiber were received and processed in 2009. Now that payment is made for usable fiber and shipping is paid if minimum weight requirements are met, 2010 estimates are for 25,000+ pounds.
? The ABP will pay for shipping of blanket fiber if a consolidation site has a minimum of 500 pounds of blanket fiber available.
2. Fiber requirements:

Fiber must be between 2 and 5 inches in length, less than 31 microns and materially free of primary fibers, second cuts, debris and contaminates.
Both Huacaya and Suri fiber is used by ABP.
3. Products:

The ABP is currently producing 100% alpaca blankets and scarves. .
4. Cost to the fiber producer:

No fee to join, but there is a lifetime fiber contribution requirement.
5. Income to the fiber producer:

? Members are paid for their fiber. ABP plans on increasing per-pound payment amount each season for at least the next two seasons.
? Members ship for free if minimum weight requirements are met.
? Members may purchase products at wholesale, non-members at retail.
? Class instruction and certification is available for commercial fiber sorting.
6. Contact Information:

Alpaca Blanket Project
10868 Siegmund Rd SE
Stayton, OR 97385
503-769-9466 or 503-5515015
AlpacaBlanketProject@yahoo.com
www.AlpacaBlanketProject.com




H. New England Alpaca Fiber Pool (NEAFP)

1. About the business:

The New England Alpaca Fiber Pool is an alpaca fiber processing solution supporting alpaca farms and retailers all across the United States.

Have manufactured in the U.S.A. for over 12 years creating eco and socially conscious fashion.

Provides alpaca farms with a method to maximize the value of their alpaca fiber, gaining access to commercial scale processing, while still maintaining complete control over their business.

2. Fiber requirements:

Super Fine Cria - From the prime area of an alpaca under one year old. Normally used in very fine and soft shawls and knitting yarn. Very soft with medium staple length (2-4 inches).

Prime (sometimes called blanket) - Comes from the area of an alpaca where a horse blanket would fit. It is typically the finest fleece from an adult alpaca. Usually it is soft with long staple length. Prime fleece is typically used in blankets, afghans and sweaters. (3-7 inches).

Seconds - Similar or slightly coarser to prime with shorter staple length. Used to produce Socks, Gloves Hats and Scarves (2-5 inches).

Thirds - Coarsest of all alpaca fiber with varying staple length. Used to make braided rugs, baskets and show leads (1 inch or longer).

3. Products:

All products made in the USA.

Socks (75-80% alpaca), hats (alpaca and micro-fleece), gloves (100% alpaca), scarves (100% alpaca-made in USA), Alpaca coats (100% alpaca), housewares-baskets-tote-placemat-trivet-rug, (33-100% alpaca), blankets (100% alpaca), yarns (100% alpaca) & fabric.
Cost to the fiber producer:
Members purchase at wholesale, non-members at retail. Two ranges of pricing for wholesale. 1) Alpaca owners that contribute fleece and place orders for finished goods. Once they contribute allotted amount of fiber they may purchase products at reduced wholesale price (they are given a discount off wholesale for their fiber contribution). 2) Large volume purchasers who only buy from NEAFP in order to resale to the public-wholesale prices.
Not feasible to take raw alpaca fleece in trade for Finished Goods.
Cost to the fiber producer:
$250 membership fee
Charge for manufacture of products
Income to the fiber producer:
Income is available to fiber producer through retail sale of finished goods.
4. Contact Information:
www.NEAFP.com


I. North American Alpaca Fiber Producers (NAAFP)
1. About the business:
NAAFP is an agriculture cooperative that was created to establish the highest level of quality alpaca products from fiber produced and processed in North America by alpaca fiber producers who have their fiber sorted by a certified fiber sorter, using the
Certified SortedTM system.
2. Fiber requirements:
Fiber must be sorted by “Certified Fiber Sorter.

3. Products:

All products produced in the USA.

Hats, scarves, yarn, baby blanket, duvets (some are a blend) socks, and more.

4. Cost to the fiber producer:

Pay to have your fiber sorted by a Certified Sorter Trained in the Certified Sorted™ System
Pay run costs ( processing and shipping)

In order to cover overhead NAAFP assesses each member who has had fiber entered per year a Retains. The amount is decided by the Board of Directors. This fiscal year it is .05 / ounce submitted ($0.80/LB).
5. Income to the producer:

NAAFP does NOT buy fiber.

Members receive a net profit from their fiber. This profit comes from someone else selling their products and taking a commission, or from members selling their own products at retail.
6. Contact Information:

North American Alpaca Fiber Producers
1635 Rapid Lightning Rd.
Sandpoint, ID 83864
www.naafp.us
208-265-8672
fiberproducers@hughes.net

The views presented in this Module are not representative of the views of NAAFP.


J. Ingrid’s Hand-Woven Rugs Inc. (Texas Rug Project)

This project uses fiber that is not useful for other venues. Ship your fiber to Texas, pay for processing and receive a beautiful rug. These are great for home or for retail and there are numerous designs available.

Contact Information:

141 S. Roberts - Hwy. 83
P.O. Box 115 ( for Parcel Post)
Paint Rock, TX 76866
800-752-8004
323-732-4426 FAX
schofft@wtxs.net
http://uts.cc.utexas.edu/~llama/ingrid/index.html


K. Commercial Value Comparison

1. Non-Retail Commercial Use:
The following two tables compare these commercial users anticipated costs and returns by pound for 2010-2012. This table shows only the value received for fiber. It does not show the potential income that can be realized through retail sales.
Costs do not include shipping
The first table based on non-retail for the fiber producer.
Data confirmed by each of the following commercial users of alpaca fiber.
The second table based on the fiber producer being involved in retail sales.
These tables show the average of high and low amounts for both costs and projected returns to the fiber producer depending on what is available, their fiber, and their financial means/goals.

This table shows the fiber-related income anticipated per pound of fiber submitted.
Numbers do not include transportation of fleece to the organization.
Numbers are based on prime fleece.
The following shows non-retail sales income (producer not in retail sales-estimated cash earnings for fiber producer).

$ Per Pound
Organization 2010 2011 2012
NEAFP 0.00 0.00 0.00
ABP 3.00 5.00 7.00
AFCNA 1.00 3.00 5.00

L. Retail Commercial Use:
1. Estimates for 2010-2012

Retail sales (amount of profit on retail sales that is related to fiber submitted)
• Numbers do NOT show all income from sales, but just the portion related to fiber submitted.-Data confirmed by each of the following commercial users of alpaca fiber.
• Numbers do not include costs related to transportation.
• Numbers are based on prime fleece.

Estimates For 2010:
Organization Upfront cost/lb fiber contribution Upfront cost/lb for sorting Total upfront cost/lb contribution Per lb profit on retail sales Less income pre-retail payments Net retail profit per pound
NEAFP 25.78 0.00 25.78 6.77 0.00 6.77
ABP 23.00 0.00 23.00 34.77 3.00 39.77
AFCNA 0.00 0.00 0.00 0.00 1.00 1.00


Estimates For 2011:
Organization Upfront cost/lb fiber contribution Upfront cost/lb for sorting Total upfront cost/lb contribution Per lb profit on retail sales Less income pre-retail payments Net retail profit per pound
NEAFP 25.78 0.00 25.78 6.77 0.00 6.77
ABP 23.00 0.00 23.00 34.77 5.00 41.77
AFCNA 0.00 0.00 0.00 0.00 3.00 3.00

Estimates For 2012:
Organization Upfront cost/lb fiber contribution Upfront cost/lb for sorting Total upfront cost/lb contribution Per lb profit on retail sales Less income pre-retail payments Net retail profit per pound
NEAFP 25.78 0.00 25.78 6.77 0.00 6.77
ABP 23.00 0.00 23.00 34.77 7.00 43.77
AFCNA 0.00 0.00 0.00 0.00 5.00 5.00


Keep in mind that the tables above only show the dollar value received for your fleece. The dollar value earned on retail sales is often above $50 per pound.

These tables are only to show the earnings related to the amount of fleece submitted and compare to what would be made without fleece submission.

Since non-fleece contributors may purchase goods from AFCNA at the same price as members, there is no value shown in the retail tables above for AFCNA. Members can make a profit, but the profit is the same for those who submit fleece and those who do not. However, AFCNA members can anticipate making a profit in the form of dividends from these sales as shown in the non-retail table.

The length of time that upfront costs shown above are out-of-pocket will vary between these organizations. NEAFP and NAAFP require some or all of the amounts be paid prior to processing. The ABP and AFCNA require payment upon purchase of finished products.
2. Our alpacas are doing their job (growing fiber)--are you?
It is up to the American Alpaca Breeder to have his/her alpacas shorn. It is also up to each to pick up that fiber and get it into the market. Donate it is one choice. The other end is to pay for sorting (or learn to sort it themselves), pay for shipping, pay for production and pay for it to be returned and then sell it. There are numerous choices in between. In this module, we have honestly attempted to document the choices we know of and present them to the best of our ability. If you ‘can’t make any money’ on your fiber, then you should re-read what has been presented and determine your course of action.

M. Future Goals
1. Create a National Fiber Market

Once we have a national fiber market, good things will happen: All alpacas will be worth something (especially the geldings since their fiber does not generally blow out once gelded).
Large and small breeders will see profits from selling their fiber or even more from a real end product. The national herd will increase as more people enter the industry once they see possible profit from product. Fiber farms will become more commonplace. Breeders will (I hope) begin to cull their herds, only breeding top males (yes those expensive elite herdsires will have a role) to appropriate females. This will slowly improve the quality of alpaca. We as an industry will finally have meaningful breeding goals based on customer requirements and not on show ring fashion. We will breed for maximum return on investment and not on crimps per inch. We will have branding and standards. What a concept!!!!!

Leverage “Going Green,” “Buy Local,” “Socially Conscious,” “The Story Behind the Product,” movements. Alpacas and their fiber are truly green - cotton requires herbicides and pesticides to grow, nylon is a petroleum product. Suri will be the new mink coat Alpaca is natural. It is local. It is a socially-conscious gentle animal that walks lightly on the earth. Customers must be encouraged to consider a product’s source.

Stimulate breeding stock sales. Attract new breeders with the added incentive of fiber revenue. An alpaca’s fiber harvest should be able to at least pay for its upkeep, as defined by ‘sustainable agriculture.’

Increased sales of breeding stock will help ensure an ever-growing national herd and thereby a fiber source. We are years away from the 14-micron alpaca but breeding sales will not falter as we move to a fiber market. Live swine currently sell for 43 cents/pound, yet boars (the equivalent of alpaca herdsires) sell for $700,000 plus. The profit for the swine farmer is in the quantity of the product produced. The profit for the seed stock provider rests in the quality.

We need to effectively and efficiently manage our national clip. We need shearing standards and also sorting and grading standards. Canada and Australia have had a Code of Practice for fiber management for years. The Suri Network has a draft version almost ready for production. The Alpaca Blanket Project has published a code of practice/shearing standards on their website. We need to produce a code of practice and shearing standards that can be used across North America, keeping in mind that certain aspects, such as length requirements, are manufacturer-specific. As processors request specific grades, sorting practices, quantities and expected consistency, etc. from breeders, breeders will begin to breed for market needs – let the market define the ‘ideal alpaca.’

Let the market educate our breeders. When processors buy raw material they normally look for consistency at the lowest price. When a processor is hired as a contractor, they look toward providing the most value. In business, the tendency is to gain lock-in through value-ad.

There is a healthy cottage industry hungry for our fiber. Savvy breeders sell raw fleece to this industry for several dollars per pound or more. We should expand our initiatives to feed this industry. Spinners, felters, etc. introduce products into the grassroots markets. Word of mouth is a valuable sales tool, both for potential alpaca breeders and product consumers.

Alpaca-owned farm stores along with professional distribution channels such as specialty shop chains, catalogs and fashion designers should not be ignored. Production of a million pounds annually requires professionals with significant capital and knowledge to move this fiber through the value chain.

Including a fiber revenue aspect to our breeding business will not devalue high-end alpaca fiber. On the contrary, we increase the value of high-end fleece alpacas. Breeding goals are refined, as customers demand certain characteristics from the market. We add value to the lower end alpacas, as they now have a sustainable product to produce. Suddenly, one-half of our herd, our males, now have value.
2. Transportation Consolidation

Throughout North America, there are numerous collection sites for alpaca fiber. There are businesses that transport alpaca across these countries.

Through cooperation and consolidation, the amounts of fiber transported at a single time will be much greater than today. This will allow for transportation costs at a fraction of what is paid today, with will increase profit for everyone.
3. Breeding Fiber For End Use

A breeder needs to understand what end use they want for their fiber. Different uses call for different fiber. However, there are some characteristics that are valued by all end users, such as density (more volume/weight-more product) and uniformity (the more consistent, the better the end product).
4. Creating “Value” For North American Alpaca Fiber

The better the products and the more available to the public, the higher the value and the more profit for the alpaca owner. There is sufficient fiber in North America to build awareness by the public. The more the public is aware of the wonders and benefits of alpaca products, the greater the demand.

Get the fiber out of the barn and shed and please do not burn it. There are organizations today willing to pay shipping costs to get your fiber. Even if you give it away, you will be contributing towards building value for your next season’s fiber harvest.

We need to define and bring value from the following:

Benefits of alpacas as livestock
Benefits of alpaca fiber
Financial benefits
Rustic rural work ethic
Natural products & Going Green
Attracting new potential breeders
Educate on value and strengths of alpaca fiber
Additional revenue stream in addition to breeding and animal sales
Provide Sales & Marketing channels for a North American fiber clearing house
Internet-based centralized alpaca fiber portal
Standard contracts
Fiber harvesting standards
Building a Fiber Portal

We need to work with breeders to:
Research options on selling and marketing fiber
Ensure maximum profit for fiber sales
Ensure breeders understand breeding, grading and needed quality levels to produce superior products

Implementation strategies

Pilot participation. Who do we ask? What aspects are standard throughout the industry and what standards are manufacturer specific?
? Articles on fiber – how to sheer properly (color and length) to limit short fibers, how to sort for uniformity, worsted or woolen, etc. It is important the fiber producer understands proper shearing, if they do not, the shearer may ruin their entire year’s production.
? Alpaca University
? Where to go for education – seminars at Mid Winter conferences, at shows, etc
? Provide research updates (we are working with the University of Colorado, Olds College, Gaston Fiber College and others to evaluate alpaca fiber to validate all those claims we make or to set the record straight)
? Develop relationships with alpaca fiber producers
? Ensure each vendor posts fiber submission requirements
? Compile and publish case studies on revenue potential for various formats (raw fiber, roving, bats, skeins, etc)
? Include a Code of Practice Agreement (see Appendix 6 for an example) – to ensure pre-shearing, shearing, sorting/grading best practices
? Example of a contract agreement to deliver what is promised (example: Grade 3 fiber)

Strategies for Success
? We need to work as one to standardize, document and educate our membership in vertical integration of the value chain - between fiber sellers and fiber buyers in our currently self-limited but ever-growing ‘niche’ market. It is critical to increase animal sales. Not only will this create revenue for our membership, but also it will continue to increase our national herd, and thereby our national clip.
? We need to agree on quality. It has many definitions, depending on customer expectations. While a 14-micron vicuna sweater is luxury incarnate in the house, it will not do much for you in a blinding sleet storm. While fine alpaca is strong, it is not steel. While it is warm, it is not a multi-layered high tech parka. We offer a socially conscious group of products, in natural colors that is eco-friendly, carbon neutral, sustainable and durable. And alpaca plays nice when blended with other more established products – wool, silk, mohair, bamboo, and many others.

• We need to research and connect those who desire to sell alpaca fiber to those who desire to purchase it.
• We need to entice members to get their fiber into the market.
5. Creation Of A Fiber Information Portal
The Fiber Information Portal would be open to all businesses. It would encourage any and all within the fiber value chain to be part of the portal. We need to establish an industrial business ‘incubator’ concept to help start-up fiber processors get off the ground. It is unrealistic for breeders to take on the mantel of becoming product experts. Breeders should not be responsible for understanding consumer trends or design needs. Large manufacturers have the pulse of the market. These are the contacts we need.
There should be the potential for fiber producers to rate those within the value chain and the ability to comment. For example, it would quickly become evident who are the best shearers, where they are located and the costs associated. The same results and information would quickly become available for all parts of the value chain.

N. Summary
1. Industry Standards
Standards must be created based on the needs of the manufacturer. While many of the needs of the manufacturer are across the board in the worldwide wool industry, some of these needs are manufacturer-specific. The same holds true for alpaca.
2. Breeding For Fiber That Is Consistent With End Product Needs
There is a lot of information available about the characteristics of alpaca fiber. Various testing is available today. The informed breeder can now make decisions with a high degree of reliability as to the outcome of fiber characteristics. Breeding decisions should also be based on what the alpaca owner intends to do with the fiber. Coarse fiber, for instance makes the best rug. ? Decisions need to be made about what to do with our “culls”.
3. Care Of The Alpaca--Environment Impacts Fiber
Proper care of the alpaca impacts the value of the fiber. Environment plays a big part in a year’s yield and potential value.
4. Shearing
If the alpaca owner does not intend to show a fleece, a commercial leaf blower usually does a great job of cleaning the fleece prior to shearing. This does not harm the alpaca nor decrease its value for commercial use. There is a high percentage of fiber throughout North America that is ruined for commercial use due to contamination that could be removed prior to shearing.
This is the best time to clean a fleece. Protect your investment! A Shearer is there to get the fiber off the alpaca. “It Is The Responsibility Of The Alpaca Owner To Insure The Quality Of The Shearing”. The alpaca owner needs to understand the needs of the manufacturer and insure the shearer also understands. The shearer can ruin a lot of fiber, mainly from making second cuts. This is avoidable. Do not let your investment be chopped into small pieces.
6. What Is The Intended End Use?
Requirements vary based on end use. Understand what the fiber will be used for and by whom. This understanding not only impacts breeding decisions, but sorting, grading, classing and shipping decisions by the fiber producer. It is vital to understand where the value and profit comes from for your fiber.
7. Transportation
This is huge! Knowing the end use will allow better decisions related to the cost of transportation. It is the desire of IAOBA to assist with the formation of consolidated collection sites to be available for all commercial users. This will lower shipping costs and bring an increased profit across our industry.
8. End Product--Building Value
Each stage of the process adds value. The more involved the alpaca owner and the alpaca industry as a whole, the more value we add. Typically, those who add value see a greater portion of the profit. Be a part of the value chain-you will profit!
9. Get Your Fiber Out Of The Barn!
North America currently produces over a million pounds of alpaca fiber each season. This is enough for a viable industry. The more we work together, the more value each pound will bring and the lower the costs of transportation and production. It does not matter if fiber goes to spinners, weavers, knitters, mini-mills, commercial users or any other place within the value chain. Fiber that sits around too long will become brittle or be otherwise destroyed from insects or weather. A million plus pounds a year put in the hands of the public will increase awareness of the wonders of alpaca. This will create demand and increase profit for all alpaca owners.


O. Appendices/Case Studies
Appendix 1: Case Study – New England Alpaca Fiber Pool
A fiber business should not be viewed as an alternative to animal sales but a complement. If you look at other agricultural ventures, farmers tend to do anything to keep the cash flowing. A diversified business is more flexible and resilient and hence more likely to survive and flourish. The fiber component of your business gives it predictability. Anyone who has had a long run on males understands the value of predictability all to well. Animal sales have fantastic margins but also long sales cycles where products have lower margins and much shorter cycles. The optimum blend would be when a farm is sustainable on its fiber and profits from the sale of its offspring. You’ll be in a much better position the next time your in animal negotiations if you don’t have to think about the upcoming hay or vet bill.
New England ALPACA FIBER POOL – Coop article (interview with Chris Riley): "We deal with about 15 manufacturers all in the Unites States,” said Shelley Riley, herself a Westport Alpaca farmer and, with husband Chris, owner of this business.” We process about 40,000 pounds a year,” Riley said.
Sorting by color and fineness, cleaning and washing until eventually the fiber is loaded into an industrial baler where it is made into bales weighing 600 pounds.
Farmers can choose to sell their wool to NEAFP outright but many choose another way.
The farmer ships or brings alpaca fiber to the plant, where it is graded, baled and shipped to manufacturers. The manufactured goods are then returned to the NEAFP warehouse. Farmers can then buy the socks, hats, blankets and other goods at wholesale minus the worth of the fiber they provided.

Alpaca farmers usually sell these goods through stores located on the farm or on farm web sites and the 12 year-old business is booming.

Riley said business has been increasing by around 20 percent a year for the last several years, but business jumped 70 percent last year. “It was a banner year,” she said.
“The American people are more careful about what they are buying,” Riley said. “They want made in America.” In addition to that, interest in sustainable agriculture works in favor of alpaca fiber from family farms, Riley said.

There are about 160,000 alpacas in the United States, a tiny number when compared with the 5,000,000 cows in Ohio alone, Riley said and further importation of the animals into the United States is forbidden, mostly because of concerns about hoof and mouth disease.
But Riley said domestic breeding is going well and the number of alpaca farms is increasing.
? All products made in U.S.
Lowest Prices in the Industry.
Products Made from All Grades of Fiber.
10+ Years of Research and Development with Commercial U.S. Mills.
Fast Order Fulfillment and Great Customer Support.
Offer both Fiber Contribution and Wholesale business solutions.
Committed to Alpaca Farm's Success.
Hand Picked Certified Green U.S. Mills
Online Catalog and Fiber Bank.
Company Core Values
Only U.S. manufactured products.
Strong Commitment to quality.
Constantly improving and adding Products.
Work with Farms and Businesses of all Sizes.
Help Alpaca Farms introduce their Animals and Goods to the General Public.
Maintain Communication between us and our customers.
Provide Resources and Tools to help our customers succeed.
Utilize all grades of Alpaca Fiber.
Company History
The New England Alpaca Fiber Pool was founded over seven years ago by three fiber artists who dreamt of sharing the wonders of Alpaca Fiber with everyone in North America. Luckily, New England was densely populated with century old textile mills in desperate need of a niche market to keep them in operation. With the help and commitment of many talented Alpaca Farms, Fiber Artists and Mill Owners, NEAFP's dream has grown into a flourishing business.
In the early days, most manufacturers had little experience with alpaca fiber; it was a very risky time to start a mill while the rest of the North American Textile Industry was on a steady decline. Rather than reinventing the wheel, NEAFP organized itself as a loosely coupled network, leveraging the wealth of knowledge and experience that surrounded it. As NEAFP started to identify manufacturers to build its network, one continuous message rang through.
U.S. mills were eager to work with our small quantities and invest in the future of alpaca although they wanted some type of commitment that their hard work would not be shipped overseas once the alpaca nut was cracked. As a practical matter, we adopted a policy to only produce U.S. made Alpaca Products and as it turned out, this was enough of an incentive for U.S. manufactures to work with us.
Our manufacturing partners are century old businesses, employing generations of families throughout their communities. It is interesting to experience how U.S. textile mills have re-invented themselves and truly come full circle. What NEAFP sees is people working together and doing whatever it takes because they know the mill, and their jobs depend on it. Likewise, it is important for all alpaca farms to embrace the fiber aspect of their businesses for the industry to have longevity and sustainability.
Our most frequently asked question at NEAFP is how to categorize the different grades of fiber. Our fiber grading system is designed to be simple to understand while identifying the areas of the alpaca with different levels of fineness and staple length. The products are designed specifically to take advantage of the different characteristics of each grade. We break down the grades of fiber as follows:
Super Fine Cria - Is from the Prime area of an Alpaca under one year old. Normally used in very fine and soft shawls and knitting yarn. Very soft with medium staple length (2-4 inches) Prime (sometimes called blanket) - Comes from the area of an Alpaca where a horse blanket would fit. Typically the finest fleece from an adult alpaca. Soft with long staple length. Typically used in blankets , afghans and sweaters. (3-7 inches) Seconds - Similar or slightly coarser to prime with shorter staple length. Used to produce Socks, Gloves Hats and Scarves (2-5 inches) Thirds - Coarsest of all alpaca fiber with varying staple length. Used to make braided rugs, baskets and show leads ( 1 inch or longer)

Appendix 2: Canadian Fiber Harvest Code of Practice

Alpaca Canada, the Canadian Camelid Fiber Co-op and the Natural Fiber Centre & Testing Laboratory (NFC&TL) believe that an organized, progressive alpaca fiber industry is an important component in ensuring the ongoing viability of the Alpaca industry in Canada. Unified, quality management of the fiber being produced is essential if the alpaca fiber industry is to develop and prosper. The goal is continuous improvement in the quality of Alpaca fiber produced in Canada for national and international markets.

The Canadian Alpaca Industry Fiber Harvesting Code of Practice (Code of Practice) is intended to provide clear guidelines to alpaca producers, shearing contractors, and shearing shed staff with regard to best practices for alpaca fiber shearing, clip preparation, and fiber sorting and grading standards for processing through the Canadian Camelid Fiber Co-op. By following these guidelines, growers can ensure that they obtain the maximum value for their clip each year by meeting the needs of the fiber processors and textile manufacturers.

In order to achieve maximum benefits a fleece must meet several criteria. Micron is simply one criteria...the other criteria in conjunction with micron must be Handle, Style and Character, Length, and Lack of Guard Hair.

Uniformity within each of these characteristics is the ultimate goal of the breeder. Spinning problems are caused if there is any significant deviation in micron and length. Likewise, excessive short fibers create more noils causing a decrease in yarn yield and yarn quality. Guard hairs create prickle factor. Many problems can be eliminated through careful shearing, sorting, grading, and handling of fiber as it is harvested from the alpaca.

Objectives:
• To maximize the net return to the alpaca fiber producer
• To provide minimum standards for quality control from the alpaca fiber producer to the manufacturer
In order to achieve these objectives, it is essential that each person involved in the preparation
of a clip knows what is expected of them and what can be expected of others forming the team.
The Code of Practice is divided into the following sections:
Section I: Responsibilities
A. Producer Responsibilities
B. Shearer Responsibilities
C. Fiber Sorter Responsibilities
D. Fiber Grader/Classer Responsibilities
E. Fiber Liaison Officers
Section II: Preparation
Section III: Shearing
Section IV: Fiber Grading Chart and Color Categories
Section V: Skirting & Preparing a Show Fleece
Section Vl: Histograms
Section VIl: Glossary of Fiber Terms

SECTION I: RESPONSIBILITIES
While good shearing will not improve the fleece of your alpaca, poor shearing can ruin it! Shearing should take place regularly every 12 months at the optimum time for the climate in your area.

A. Producer’s Responsibilities:
(a) Plan well to reduce stress to the animals and to the people!
(b) Provide a shearing area large enough to accommodate several people, the animal to be shorn, a shearing table, a fiber sorting table, and fiber bags... to facilitate the smooth, continuous flow of work and essential communication between the Shearer and the Sorter.
(c) It is essential to keep dry - any animals that are to be sheared. Shearing is best done under
shelter to prevent problems with contamination, snow, rain, wind, and for the overall health and
comfort of the shearing crew.
(d) Provide adequate lighting, electrical outlets, and ventilation.
(e) Clean the shearing area of all sources of contamination, including: polypropylene bags, twine, hay or other food sources, straw or other bedding materials, manure, gravel, sand, cigarette butts, toe nail clippings, or any other objects that do not belong in alpaca fiber.
(f) Organize an area close to the shearing area for preparing and holding animals prior to
shearing. This area should be large enough so animals will not be crowded, provoked into
spitting or subject to additional stresses.
(g) Ensure that designated handlers are available to clean the alpacas prior to securing them on the shearing table.
(h) These same handlers should secure the alpacas on the shearing table under the direction of the Shearer. The Shearer should not be expected to handle the alpacas and to shear.
(i) If trimming nails and teeth, microchipping, or performing herd health procedures– arrange to do these procedures sometime prior to or after shearing. This will eliminate considerable stress during shearing days. Also, do not expect the shearer perform these procedures. The shearer’s responsibility is to shear the animals.
(j) Provide a person to clean the shearing table and floor after each alpaca is shorn.

B. Shearer’s Responsibilities:
• Arrive early on shearing day to confer with the producer regarding procedures, facility, setup, and to ensure adequate help is available and to meet the Fiber Sorter.
• Review the expectations of the producer: shearer, producer, and sorter should come to a mutual understanding of how the shearing day will progress.
• Determine prior to the start of the shearing day whether or not fleece side samples will be taken for testing and whether only one sample will be taken or if a sample will be taken from each side.
• Confer with the Fiber Sorter/Classer with respect to shearing procedures.
• Avoid second cuts. If second cuts should occur, remove them from the fleece and/or alert the
sorter immediately.
• Implement the best shearing practices and be familiar with current practices for shearing alpacas.

Quality of end product usually dictates the shearing practice.
• Maintain the shearing equipment.
• Work as part of the shearing team.

C. Fiber Sorter Responsibilities:
• Confer with producer to determine the expected end result of the producer’s fiber harvest. This may require a quick hands-on review of the fleeces on the alpacas within that specific herd. This could be done immediately prior to shearing or the day before.
• Understand the alpaca fiber end product possibilities for the current fiber harvest and discuss the options with the producer to maximize the return for the clip.
• Convey to the shearer the shearing procedure required to accomplish the results of the fiber harvest as requested by the producer.
• Sort the fiber according to color, length, and approximate grade
• Ensure Record Keeping is complete and accurate
• Supervise the entire shearing and sorting operation
• Ensure the safety of both animals and humans.
• Be professional. Maintain a relaxed, productive atmosphere.

D. Fiber/Grader/Classer Responsibilities:
• Supervise the fiber grading and classing operation.
• Prevent fiber contamination during the grading/classing operation
• Be aware of and understand the possible product lines for the current fiber clip
• Prepare the fleece into color, average fiber diameter (grades) and length lines
• Ensure quality control
• Be cognizant of the different characteristics of Huacaya and Suri fiber and the optimum uses for each type of fiber
• Be completely versed with respect to the standards of a commercial fiber industry and with market trends
• Determine the classing lines for a particular clip and class the fiber e.g. long fiber, short fiber, rug fiber, sock fiber, blankets, fabric, fine knitting yarn or combined possibilities. Classing lines could change from year to year according to the quality of the fiber-determined by such variables as nutrition, drought, etc.
• Take responsibility for the decisions made for the clip for that particular year. This is usually done in agreement with the Canadian Camelid Fiber Co-op
• When required, provide feedback to the producers and processors with respect to the Classing
criteria/observations for each particular clip to enable a positive learning experience.

E. Fiber Liaison Officer Responsibilities:
• Provide information from CCFC to the producers.
• Provide CCFC with feed back from the producers.
• Set up fiber collection points within their regions.
• Arrange for shipment or transportation of the regional fiber clip to the Fiber Classing Facility that has been designated by the CCFC.
• Supervise the collection and transportation procedure.
• Assist producers with respect to fiber packaging procedures and completing the necessary paperwork.

SECTION II: PREPARATION
Assemble the following supplies and equipment:
• Refreshments, patience, and a sense of humor
• Alpaca halters and lead lines
• Shop Vac or flicker tool to clean alpacas of dust and debris
• 1 shearer, I sorter, 3-4 helpers
• First Aid Kit
• Old towels & paper towels
• Brooms and/or Shop Vac to clean shearing area between animals
• Garbage cans or containers
• Boxes (pop can flats work very well) to carry fleece sections to the sorting table Weigh these
containers and mark the weight on the side of each one so that the weight can be deducted from
the weight of the fleece sections.
• Scales for weighing fleeces
• Ruler for measuring staple length
• Record sheets and pens for recording fleece data (Section ll (a ): Sample Shearing Shed Fleece Record)
• Small Ziploc bags and felt pens for collecting fiber samples
• Sorting Table: e.g. a 4’ x 8’ wire mesh covered table set up on saw horses or PVC pipe frame with additional pieces of PVC pipe for adjusting the height of the table for the Sorter
• ARI Color Chart
• Micron Fiber Board
• Grading Chart
• Clear plastic bags for collecting fleece according to color and grade. A separate bag should be
used for each color of fiber, grade and length of fiber e.g. Bag #1 = Grade 1, White, Short (1.5 –3.5 “); Bag #2 = Grade 1, White, Long (3.5 –6.0”), etc.
• Weigh the bags beforehand so that this weight can be deducted from the total weight once the bag has been filled.
• Felt Markers for labeling the bags
• Garbage cans or similar containers for collecting discarded fleece.
• Alpacas are to be shorn in colors.
• Start with white and progress into the darker colors.
• Clean the shearing table, sorting table, equipment and floors thoroughly between color changes in order to avoid color contamination.
• Sorting happens while the shearer is shearing the alpaca.
• For commercial processing: the fiber will be sheared off the alpaca in the following order:
(a) short (lower) leg: coarse fiber from the knee down to the toes and under the belly; include
apron area if it consists of strong guard hair
(b) long (middle) leg: from just above the knee to the start of the Butt (britch) and skirting
from the belly and into the apron. If the apron area is very much stronger than the long
leg, then the apron fiber should be shorn with the short leg and discarded.
(c) Butt (Britch)
(d) Blanket (saddle) or prime fleece
(e) Neck
• Since Alpaca fiber is not yet uniform across the entire useable fleece, shearing in this order ensures that the better quality fiber is not contaminated with coarse fiber and the micron spread for each grade of fiber is closely followed. This procedure allows producers to more readily identify the changes in fiber micron spread within a fleece. Experience, and the procedure used by individual farms, will dictate quality of end product.
• Each section is sorted and graded as it comes off the shearing table
• Eliminate guard hair as much as possible. In addition, fiber stronger than 35 microns currently has no commercial value, therefore, it should not be sent to the CCFC.
• For a show fleece: the fiber will be sheared off the alpaca in the following order:
(a) short (lower) leg
(b) long (middle) leg
(c) Butt (britch) and Blanket (saddle) may be sheared together if they are similar in micron,
staple characteristics and length…the sorter should also determine if the shoulder and any
of the lower neck can be included.
(d) Neck
• Suri breeders are encouraged to shear their Suris before the fiber exceeds 175 mm (7inches), or the fleece will be overgrown and of no commercial value.

SECTION III: SHEARING
• Alpacas are to be shorn in colors.
• Start with white and progress into the darker colors.
• Clean the shearing table, sorting table, equipment and floors thoroughly between color
changes in order to avoid color contamination.
• Sorting happens while the shearer is shearing the alpaca.
• For commercial processing: the fibre will be sheared off the alpaca in the following order:
(a) short (lower) leg: coarse fibre from the knee down to the toes and under the belly;
include apron area if it consists of strong guard hair
(b) long (middle) leg: from just above the knee to the start of the Butt (britch)and skirting
from the belly and into the apron. If the apron area is very much stronger than the
long leg, then the apron fibre should be shorn with the short leg and discarded.
(c) Butt (Britch)
(d) Blanket (saddle) or prime fleece
(e) Neck
• Since Alpaca fibre is not yet uniform across the entire usuable fleece, shearing in this order
ensures that the better quality fibre is not contaminated with coarse fibre and the micron
spread for each grade of fibre is closely followed. This procedure allows producers to more
readily identify the changes in fibre micron spread within a fleece. Experience, and the
procedure used by individual farms, will dictate quality of end product.
• Each section is sorted and graded as it comes off the shearing table
• Eliminate guard hair as much as possible. In addition, fibre stronger than 35 microns
currently has no commercial value, therefore, it should not be sent to CANCAM.
• For a show fleece: the fibre will be sheared off the alpaca in the following order:
(a) short (lower) leg
(b) long (middle) leg
(c) Butt (britch) and Blanket (saddle) may be sheared together if they are similar in
micron, staple characteristics and length…the sorter should also determine if the
shoulder and any of the lower neck can be included.
(d) Neck
• Suri breeders are encouraged to shear their Suris before the fibre exceeds 175 mm
(7inches), or the fleece will be overgrown and of no commercial value.

SECTION IV: FIBER GRADING CHART AND COLOR CATEGORIES
• Alpaca fiber is graded into six standard grades, each grade identified according to micron range:
Grade #1 ..........< 20 microns ..........UltraFine
Grade #2 ..............20 - 22.9 ............SuperFine
Grade #3 ............23.0 - 25.9............Fine
Grade #4 ............26.0 – 28.9 ..........Medium
Grade #5 ............29.0 –31.9 ............Intermediate
Grade #6 ............32.0 – 35.0 ..........Robust
* At this time, Alpaca fiber that is stronger than 35.0 microns, will not be accepted by the CCFC as product prototyping and product marketing needs in this micron range are still on-going.
Basic Colors: Huacaya & Suri
1. WHITE: solid color, pure white
2. CREAM: off white
3. FAWN: LF, MF, DF
4. BROWN: solid color: LB, MB, DB
5. BLACK: solid color: True Black
6. BAY BLACK: solid color
7. GRAY: LSG, MSG, DSG
8. ROSE GRAY: LRG, MRG, DRG
9. MULTICOLOR: Pattern
Pinto
Fancy
Appaloosa

For Commercial Processing:
(1) Fleeces that are white with black fibers throughout will be placed in the Gray category.
(2) Fleeces that are black with white fibers throughout will be placed in the Gray category.
(3) Fleeces that are white with brown fibers or spots of color will be placed in the appropriate Fawn or Brown category.
(4) Fleeces that are white with brown, gray and black fibers or spots throughout will be placed in the Rose Gray category.
(5) Fleeces that appear black but have definite brown tips that do not break off due to weathering, will be placed in the Bay Black category.
(6) Short fiber: 1.5 –3.5 inches. Woolen processing method. (2005)
(7) Long fiber: 3.5 –6.0 inches. Worsted processing method. (2005)

SECTION V: SKIRTING AND PREPARING A SHOW FLEECE
A fleece destined for Fleece Shows may be shorn off the animal as one piece or it may be shorn
as two separate sides. This is left to the preference of the producer.
(1) If the fleece is shorn as one piece:
• Carefully carry the full fleece from the shearing table to the sorting table and flip the fleece
onto the sorting table with the cut side up.
• Immediately scan the fleece for any second cuts and remove the second cuts if any are present.
• Gently lift the fleece in various sections and shake it to remove dirt and debris.
• Use your color chart and confirm the color of the fleece. Note the color on the Fleece Show
entry form and on your Shearing Shed Fleece Record.
• Carefully turn the fleece so that the cut side is down on the sorting table and the uncut side is
now facing upward.
• Take a staple sample the size of a pencil from 3-6 random spots throughout the fleece and
test these staple samples for tenderness. Perform this procedure before you do anything
further to your fleece! If the staples are tender (several of the staples break in the middle), it
is wise not to enter that particular fleece in a Fleece Show. “Tenderness” is a major fault in a
Fleece Show. However, the fleece can still be used for commercial processing! Label the
fleece as “tender” and place it in the appropriate color and grade category for commercial
processing under the short length (1.5”–3.5”).
• If the fleece does not show signs of tenderness, then proceed by subjectively scanning the
entire fleece to spot any irregularities, such as:
(a) “hairy” sections
(b) a spot of a different color
(c) stains
(d) debris such as hay or other contaminants that do not belong in the fleece
(e) any sections that look considerably stronger in micron than the majority of the fleece
Remove these irregularities being careful to only take out as much of the fleece portion as
required to remove the irregularity. Do not remove excessive amounts of fleece or you will
have over-skirted and lost fleece weight.
• Final step: fold the fleece as per one of the methods described in Section V(a): Skirting and
Preparing a Fleece for Show
• Gently insert the folded fleece into a clear plastic bag. Complete the Show forms and insert
them in the bag. Your fleece is now ready for competition. Good Luck!
If the fleece is shorn as two separate sides:
• Carefully carry the side of fleece from the shearing table to the sorting table and flip the
fleece onto the sorting table with the cut side up, then
• proceed with the same routine as for full fleece. Set the fleece section aside, then
• repeat the procedure for the second side of fleece.
• Final step: fold the fleece as per Section V(a): Skirting & Preparing a Fleece for
Show –step #2
• Gently insert the folded fleece into a clear plastic bag. Complete the Show forms and insert
them in the bag. Your fleece is now ready for competition. Good Luck!

SECTION VI: HISTOGRAMS
Why test Alpaca fiber? To gain a national alpaca fiber quality advantage!
• Valuable objective measurement for determining and implementing breeding programs
• Cost-effective process to determining and minimizing product variation
• Efficient tool for objectively determining fiber quality
• Effective guide for determining end-product suitability and blending properties
• Increase producer, processor, consumer knowledge.
In South America, classing of fiber is accomplished through the employment of artisans using their tactile sensitivities. No objective measurement of fiber is utilized and subsequently product quality can change as visual appraisal is uncertain.
The competitive advantage for Canada must come from:
(a) production of high quality fiber
(b) consistent fiber harvesting practices
(c) professional grower sorting, grading and classing of that fiber into predetermined manufacturing lines
(d) objective fiber testing
The grower will much more accurately and quickly achieve quality fiber production through objective testing of fiber samples taken from each animal at each shearing from the age of 12 months onward.
Breeding programs can be more accurately assessed and implemented through the understanding and use of fiber histograms
Professional classing of the fiber lines to exact manufacturer and customer specifications must be accomplished through:
(a) subjective measurement at the time of shearing and subsequent fiber shed sorting
(b) objective measurement (OFDA100) of the fiber once it is in the fiber bales. This general
information would also be fed back to the growers and would act as a benchmark for a national average.
These procedures will further ensure that high national alpaca fiber classing standards are
developed which will further translate into the evolution of superior Canadian Alpaca products
that will capture the attention of discerning markets. Alpaca fiber is highly variable and grower fiber awareness along with skilful clip preparation is becoming essential for an industry to become profitable and sustainable through:
(a) good marketing
(b) determining the attributes of the fiber through objective testing thus removing uncertainty, and then
(c) ensuring equity in the price being offered for the fiber
(d) providing the processor with essential information for predictability of processing performance, end uses, blending capabilities, dyeing qualities, and therefore, processing price setting
(e) providing the ability for the grower to compare prices between different growers, processors, manufacturers, and different countries for similar lines of fiber
(f) assuring fiber buyers of consistent quality fiber or fiber products.
10 Alpaca fiber must be sampled from the same area on the Alpaca each time it is sent in for
testing. That testing area is the mid-side. Each sample should be at least 25 grams (1 oz), in
order for accurate testing to be performed by the fiber testing lab.

SECTION VIi: GLOSSARY OF FIBER TERMS
Apron (bib): the chest area of an animal that may exhibit longer, highly medullated extra strong fiber.
Aran (Afghan, Worsted) Yarn: slightly heavier, bulkier (thicker) yarn than Sport Weight. Approximately 850 -1100 yards of yarn per pound. Knits at approximately 4-5 stitches per inch. Usually used for the beautiful Aran (or Irish Knit) bulky sweaters.
Bird’s Nest: a small portion of the fleece that is found at the base of the neck which often becomes highly contaminated with hay or other feed materials. It may extend along the backline of the animal. It should be removed. Good compost material.
Blanket (saddle): prime quality fleece usually found from shoulder through midsection to base of tail, extending down past the halfway point on the sides of an animal. Edges of the blanket are characterized by a change in the grade of the fiber. This area of prime fleece may vary greatly in size, depending on the uniformity of the fleece on an animal.
Britch: lower thigh of rear legs.
Bundling: A grouping of microstaples that together form a large staple. The foundation of the microstaples is determined by the arrangement and density of the follicles in the skin. Bundling is said to be an indicator of a dense fleece, due to the evenness of follicle size and consistency of shape in the skin.
Chalky: Fleece exhibits dull/poor looking fibers. Possesses no brightness, sheen or luster. Chalky fleece should be avoided.
Character: Relates to the wave/crimp and crinkle within the staple relevant to breed type.
11 Chunky (Craft, Rug) Yarn: Number of plies vary according the requisites of the end product. Approximately
450-800 yards of yarn per pound. Used for hats, heavy throws, rugs, vests, heavy weight socks. Knits at approximately 2-3.5 stitches per inch.
Classing: the grading and sorting of fleeces into consistent groups or uniform lines of fiber based on recognized quality characteristics such as micron, colour, hand and staple length.
Clean Fleece Weight: Relates to the percentage of clean fleece (fiber) after removing all extraneous matter (dirt, grease, burrs, seeds)
Clip: the total amount of fiber harvested by a producer in one growing period (which is usually one year). Older animals or animals with slow rates of growth may be shorn after a growing period of two years.
Fleece that is left on an animal for more than one year may deteriorate in quality due to more extensive contamination, tenderness, sun bleaching, tip and fiber damage and felting.
Cobweb Weight Yarn: the finest, lightest, spun yarn. Has the look and feel similar to a cobweb. Used for very lacy decorative items and garments. Can be approximately 8000 yards per pound.
Co-efficient of Variation (CV): Spread of fiber diameter variation throughout the fleece.
Formula: SD/Mean Diameter x 100
Color Contamination: Occurs when colored fibers are present throughout a white fleece or white fibers are present throughout a black fleece.
Comb: a shearing handpiece attachment which helps guide the handpiece and provides a cutting surface.
Comfort Factor: The percentage of fibers within a fleece that are under 30 microns.
Cotted: fleece that is matted together. This causes problems in processing so the fleece must be opened.
Crimp: the degree of corrugation or regular wave found in locks of fiber. This can vary from an extremely tight crimp with many closely spaced corrugations to a lock that is completely straight with no wave or crimp whatsoever. Fleeces with a high crimp factor produce excellent lightweight, bulky yarns. Fleeces with a lesser crimp factor produce excellent worsted yarns. Each type of crimp displays elasticity.
Crinkle: is related to crimp and is used to describe the wavy characteristics of each individual fiber as opposed those characteristics of crimp found in all fibers aligned together uniformly in each lock.
Curve: The degree of curve in a fiber. A direct correlation to crimp. E.g. Curve reading of 40+ deg/mm represents excellent crimp in Alpaca Fiber.
Curve Number: The number of fibers in the sample measured for curve.
12 Cutter: sharpened tool which reciprocates back and forth on a comb to cut fiber during the
shearing operation.
Density: The compactness of the individual fibers of a fleece.
Felting: The massing of fibers under heat, steam, agitation, and pressure to form a non-woven fabric.
Irreversible. Felting will also occur within the fleece on the animal as a result of overgrown fleece due to irregular shearing practices. Fiber Curvature: one of the main components of crimp . The lower the fiber curvature the lower the staple crimp frequency. Fineness: the diameter of an individual fiber, often measured in microns with extremely precise laboratory
instruments. Genetics, nutrition, health, stress and age may affect this measure and it can change dramatically from year to year.
Guard Hair: stiff, medullated (hollow) fiber which may be either short or long. Grows from the primary follicle and does not exhibit any noticeable twist or bend. A true hair fiber.
Hand (handle): a subjective tactile assessment of the softness or feel of the fiber. Not quite the same as fineness. Fine fiber may also feel dry or brittle or harsh and so would have a poor hand. Fiber with a poor hand may be downgraded to a coarser micron category.
Huacaya: a fleece type of alpaca that has fiber with crimp and/or crinkle, that tends to grow
perpendicular to the body of the animal, giving the animal a rounded, fluffy silhouette.
Impurities: Relates to excessive vegetable matter, staining within the fleece, and/or any excessive tip damage.
Kemp: fibers are coarse, all hair fibers are dead, completely hollow and have a thin wall. They have limited flexibility and do not readily accept dyes.
Lace Weight Yarn: slightly heavier than cobweb type yarn. Used for very fine lacey garments worn next to the skin as well as fine decorative items. Ranges from approximately 4500-8000 yards per pound. The number of plys depends upon the end product.
Light Worsted Yarn: yarn that is conducive to textiles. Light worsted can vary considerably in weight starting at approximately 1000 yards per pound. Until recently, wools and wool type fibers have produced light worsted yarns slightly heavier than cotton. This scenario is changing with the recent advent of “smart fibers” and more refined processing techniques.
Lopi Style Yarn: a chunky yarn similar to a 3-ply yarn, however, it is a thick single strand with only a slight twist to it. Terrific for those soft, heavier weight outdoor sweaters, sweater jackets, vests and some types of socks.
13 Lustre: The sheen or brightness of the fiber.
Mean: Average fiber diameter e.g. 20.2 microns
Medullated Fibers: Cells within the middle of the fiber (medulla/core) have collapsed and caused the fiber to become hollow. Medulla of a medullated fiber can be fragmented, interrupted or continuous.
Medullated fibers take up less dye, causing them to stand out in the finished garment. The fibers are also weaker. This term is usually applied to the coarse guard hair of alpacas; however, alpacas also produce varying degrees of finer medullated or part medullated fiber which is not undesirable.
Micron: a unit of measurement of diameter equal to 1/1000 of a millimeter.
Midside: a point approximately midway between the front and rear legs and just lower than halfway down the side of an animal.
Objective Measurement: testing traits that can be measured objectively. Measurements will increase with age so the traits should be measured regularly at 12 months, 24 months, etc.
Performance Records: Collection and recording of objective and subjective measurements
throughout the life of an animal.
Ply: A single strand of twisted fiber. Also called Singles.
Plying: Twisting two or more spun strands (Singles) together using a manual spinning wheel or
a commercial spinning device e.g. 2-ply yarn = 2 strands of yarn twisted together.
Progeny Testing: the collection of performance records from an individual animal’s progeny. This is the common method of comparing the progeny of several sires.
Roving: A slightly twisted sliver or roll of fiber produced during processing before it is spun into yarn.
Second Cuts: short, prickly fibers created when the fleece is cut twice. This can happen when the shears come away from the body of the animal leaving a ridge that gets cut twice. Any fleece ridges that do occur can be left on the animal and do grow out to a uniform look in several months time. Alternatively, the ridges can be cleaned off after the entire fleece has been removed from the shearing table.
Shear Weight (fleece weight): the weight of all usable fiber taken off an animal at shearing.
Skirting: The process of removing all debris and contamination from around the outer edges of
the shorn fleece.
Sock Weight Yarn (Fingering, Baby): a fine yarn slightly heavier than lace weight. Approximately 1650-2300 yards per pound. Knits at approximately 7+ stitches per inch. Number of plys vary according the requirements of the end product. Not necessarily used just for socks.
14 Spinning Fineness (SpnF): An estimate of the performance of the fiber sample if it is spun into yarn.
Calculated by combining the measured mean diameter and the measured co-efficient of variation (CV).
SpnF can be improved by either decreasing the mean fiber diameter or decreasing the CV.
Sport Weight Yarn: slightly heavier than Sock Weight Yarn. Sport Weight Yarn and Sock Weight Yarn are commonly confused. The end product dictates the weight of yarn to be used. Sport weight yarn runs approximately 1150-1600 yards per pound and knits at approximately 5- 6 stitches per inch.
Stain: urine, dung or mud stain on a fleece, Stained fleece portions must be kept separate from other fleece parts.
Standard Deviation (SD): Fiber diameter variation within a staple.
Staple: a lock of fiber containing a number of individual fibers. Staple/lock structure can vary significantly within a type of animal such as Huacaya alpacas, as well as between types such as Huacaya alpacas and Suri alpacas.
Staple Length: the length of a staple or fiber measured from cut base to tip, without stretching.
*Suri Staple Lengths will be reconsidered once the availability of Suri fiber in Canada has increased.
Style: Relates to the twist/wave within the staple based on the most desired lock type for a
particular breed. E.g. –
• Style 1: Fleece that shows a good uniform crimp along the length of the staple.
• Style 2: Crimp is not well defined along the length of the staple but there is crinkle in the
individual fibers.
• Style 3: Fiber that has no wave formation in the staple or crinkle in the individual fibers.
Essentially a straight fiber. Super Bulky (Roving) Weight Yarn: can be a single strand or a plied yarn. Usually used for items such as saddle pads, rugs, heavy vests. Approximately 400-600 yards per pound. Knits at approximately 1.5- 2.5 stitches per inch.
Suri: a fleece type of alpaca known for high lustre with fiber that has no crimp or crinkle, that tends to hang parallel to the body of the animal and that twists into pencil or rope-like locks/staples, giving the animal a slender, fluid silhouette. This term is sometimes applied to llamas with these fiber characteristics (also known as silky llamas).
15 Length Huacaya Suri* Overlong OL Over 150 mm (6 inches) Over 225 mm Long L 101-150mm (3.5”-6.0”) 151-225 mm Medium M 85-150 mm Short S 50-100mm(1.5”-3.5”) 50-84 mm Very Short VS Under 50 mm (2 inches)
Tags: bits of coarse, felted or short fiber from areas such as the topknot and lower legs. Usually not used for yarns but may work for felting. Good compost material.
Tender: fleece that breaks easily at one or more points along the length of the fiber. Often caused by some trauma, stress or health problem suffered by the animal at a time that correlates to the break points. Tensile Strength: the force required to break a fiber staple of given thickness. Tensile strength is expressed in newtons/kilotex.
Uniformity of Color: Relates to the evenness and regularity of color throughout the entire fleece.
Woolen Method of Processing: fibers are aligned in criss-cross or random fashion. This allows air pockets between the fibers and results in a very soft, lofty yarn. This method is generally used to deal with shorter fibered fleeces. It is the preferred method of processing for creating bulky, light weight knitted garments and some woven items.
Worsted Method of Processing: all fibers aligned in one direction resulting in a more tightly spun, light weight yarn. This method is generally used to deal with long fibered fleeces. It is also the preferred method for spinning yarn to be used in woven fabrics.
Yarn Weights: please note that yarn weights may vary from one manufacturer to another and from one type of fiber to another. The definitions of yarn weights listed here apply to approximate weights only and are intended solely as a guideline. The yarn weights can be as diverse as the manufacturers of the yarns and the fibers used to create the yarns. Learn the terminology used by your favorite manufacturer or processor. To ensure that a processor is creating the weight of yarn you desire, bring a sample of that particular yarn to the processor when submitting your raw fiber.

Appendix 3: Canadian Fiber Coop (Your Fiber – Your Future)

The Canadian Camelid Fibre Cooperative (CCFC) is the ONLY nationally based fiber co-op in Canada. Our current membership hails from the Maritimes to the Rockies with our board directors also representing a wide geographic base. The CCFC head office and collection facility is located in Innisfail, Alberta and staffed by our capable office manager, Diana Elidrissi and assistant, Judy Fisher. There are many supportive members of the co-op who have volunteered countless hours resulting in a solid framework and steady growth, development and quality product range that we can now offer to the larger industry.

The Canadian Camelid Fibre Co-op was formed in 1999 by some visionary alpaca breeders armed with the twin truths "to sustain a national breeding stock industry there must be a commercial fiber industry" and "to succeed in the commercial fiber industry we must be able to guarantee both reliable quantity as well as quality ." These truths can only be realized by the pooling of an increasing percentage of our national fiber harvest. The CCFC group went to work:
• Developing a structured quality controlled grading system for camelid fiber
• Searching for affordable and suitable processing options
• Providing product and market research and development
• Promoting quality control beginning at the farm through shearing and sorting educational opportunities
• Managing production and quality assurance with the mills.

Excellence, repeatability and marketability have been the paramount concerns in this ongoing venture. The co-op office and collection centre was established in 2004, to stimulate the production and sale of products produced from member fiber
• By developing & testing prototypes
• By ensuring high standard specifications on all raw and manufactured product
• And by seeking out and working with quality design, manufacturing & promotional sectors.
Overall, the Canadian Camelid Fibre Co-operative's primary purpose is to provide world-class fiber quality assurance and fiber classing services, acting as an agent for its members in the remaining end product value added steps. This has been accomplished and the entire alpaca industry has seen benefit from the work done and the lessons learned. As a result of the past 8 years of evolution, CCFC now offers a top quality line of wonderfully soft, reasonably priced and useful Alpaca items for each grade of fiber collected, for which there is a rapidly growing national and international demand.
What makes The Canadian Camelid Fibre Cooperative different from other fiber options?
At the very core is the assurance of certified classed fiber going to the mill. There is NO mixing of a wide variety of grades, lengths, or colors. We can say with absolute certainty that our certified uniform lots of fiber create more efficient processing for the mills and result in a more luxurious and durable finished product. Every time! Guaranteed! This point is key to the value and integrity of our products. The co-op recognizes a value on members' raw fleece as we endeavor to maximize our members' return on their fiber harvest.

CCFC BASIC CONCEPTS
(Please keep in mind this is an ever evolving institution, therefore processes will change as we grow).
1. MEMBERSHIP - Purchase a share entitling participants to the benefits and services provided by the Co-operative.

2.PARTICIPANTS RESPONSIBILITY is to shear and sort on farm on a best effort basis according to the Co-op's Canadian Alpaca Fiber Harvesting Code of Practice (see CCFC Documents)
b. As promoted through educational opportunities provided by Co-op and its network of partners, Natural Fibre Centre and Alpaca Canada. Members are encouraged to take these classes.

3. FIBRE DELIVERY is according to instructions on our website. Participants box sorted fiber and deliver it to one of the collection sites that may arise at alpaca events, or deliver it directly to the Co-operative Centre, Innisfail. Make sure BAGS are labeled with proper CCFC Bag Forms as found in the CCFC Documents page of this website.

4. CO-OPERATIVE CENTRE HANDLING OF FIBRE. Each member's submissions will be recorded on arrival, before being professionally classed into larger lots according to grade, color, length.

5. "BEST FIT USE" Following each fibre classing session the Co-op determines the "best fit" of retail ready products from the classing results; for example, Grade 1 Long White may be processed into fine yarn, Grade 4 short fawn may be processed into socks or blankets, etc.

6. MEMBERS AVERAGE PROCESSING FEE is calculated by the Co-op for each grade of fiber based on the current processing/manufacturing costs associated with the "best fit" products for that grade. The Co-op has created Industry alliances with value chain partners allowing for substantial savings benefiting its members on processing fees.

7. PROCESSING PAYMENT TERMS : Cheques, cash, MasterCard/Visa/debit Post dated cheques up to 30 days, are accepted to help members budget. It is critical that members pay processing invoices as early as possible to enable the Co-op to pay for product before it is released from the Mill or Manufacturer.

8. FIBRE VALUE CREDIT: The Co-op determines member's fiber value ($/kg) based on the quantity and quality of fiber it takes to create a finished product and the expected average market value of that product. Current values are; Gr.1- $57/kg, Gr2- $43/kg, Gr3- $34/kg, Gr4- $28/kg, Gr5- $14/kg, Gr6- $7/kg

9. "CANADIAN COOP CREDIT" or "CCC" is calculated by adding a member’s Fiber Value Credit to the amount he/she paid for processing and is applied to the members account as soon as processing fees are paid in full.

10. USE OF FIBRE CREDIT SYSTEM : Members are entitled to use CCC Credits for "purchasing" finished product at any time (provided desired items are in stock), at base price plus 15% which is the lowest price level "M1", until their credit is zero. The GST, Shipping and 15% will be paid per order. There is no mill wait times when products are in stock.

TOP 10 REASONS TO JOIN THE CANADIAN CAMELID FIBRE CO-OP
1. You are given valuable feedback on your submitted fiber.
2. You are given sound, marketable choices for each grade of fiber you submit.
3. You stay current with industry standards. Code of Practices has been developed for shearing, sorting, classing to ensure an ongoing evolution of quality in fiber farming practices.
4. As a member you can purchase all Co-op products through the Distribution Centre.
5. You support the Research & Development that is done through the Co-op as it constantly prototypes and assesses new product to match each grade/lot of fiber.
6. You are assured of mill and manufacturing quality workmanship because the Co-op monitors quality at every stage of production, and deals with quality issues on member’s behalf if there is a problem.
7. You gain access to affordable processing as higher quantities equal volume discount at most mills.
8. Because the Co-op has developed a world class sorting & classing system that supports more efficient processing and consistently uniform high quality finished product, you are assured a return of standardized quality product.
9. You gain access to larger commercial markets though our new retail ready division Alpaca Naturally! Only by working together can we meet the growing demands for quantity and quality alpaca product!!
10. You are actively contributing to the development and future sustainability and profitability of your industry. A successful commercial Camelid fiber industry will help sustain a more profitable breeding stock industry


Appendix 4 - The Alpaca Blanket Project (ABP)

The Alpaca Blanket Project (ABP) is a collaboration of American alpaca growers interested in building a lucrative, sustainable, high-end fiber industry in the United States. Since 2003, Peter & Carol Lundberg have been working toward creating this North American resource for the alpaca community to use for their fiber. ABP works with Pendleton Woolen Mills, an American fiber mill with a renowned worldwide reputation, ABP is paying American alpaca growers for their fiber for the production of 100% alpaca blankets. This gives the American alpaca farmer the ability to produce a cost-effective, American-made product that brings public awareness to the wonders of alpaca fleece.

It’s All About The Fiber
According to Alpaca Registry, Inc., there are nearly 200,000 alpacas registered in the United States. This does not include unregistered fiber animals and animals registered with the Canadian Llama & Alpaca Registry. With the U.S. alpaca population increasing exponentially each year, alpaca growers are now faced with a dichotomy in the industry: Breeders trying to hold onto their breeding market and growers seeing the industry tied to fiber and a desire to have that fiber processed in the United States. The ABP feels there is room in the industry for both standpoints and is excited to offer this resource to both.

Who Can Join
ABP is not a co-op and is open to any alpaca grower or group who can send a minimum of 35 pounds of fiber. Supporters are assigned a farm number that can be used to receive feedback on their submitted fiber to aid in their breeding & shearing programs. Every bag of fiber received is logged in separately and feedback made available to the member.

Benefits of Collaboration
Contributors not only receive payment for their usable fiber; ABP provides important feedback information on the fiber received through their Fiber Information program. ABP also offers sorting/grading classes. This provides the hands-on experience of grading fiber and preparation for commercial production. Members also have the benefit of purchasing the Pendleton-produced blankets and other products at a wholesale price for resale in their farm stores.

The ABP pays for fiber!

The ABP pays shipping of blanket fiber from consolidation sites across the US if the site has a minimum of 500 pounds of blanket fiber.

Fiber Requirements
ABP is accepting both Suri and Huacaya that is relatively free of vegetation, second cuts, and heavy primary fiber and completely free of contaminates that may otherwise contaminate the ABP inventory (i.e. lice, moth eggs, mold, etc.). Fleece needs to be between 2 and 5 inches in length. We can use fiber from the neck and upper legs if it is uniform and meets the other requirements stated above. We cannot use grade 6 (above 31 micron) nor can we use fleece from the apron, belly or lower legs or anything under 2.0 inches at this time.

Mail fiber to:

Alpaca Blanket Project
10868 Siegmund Rd SE
Stayton, OR 97383
http://www.AlpacaBlanketProject.com
AlpacaBlanketProject@yahoo.com
503-769-9466 (home base)
503-551-5015 (cell-Peter)

Appendix 5 - Examples Of Current Fiber Revenue Initiatives

http://www.fibersorting.com/ I have joined and am going to the 4 day seminar in August.
A top designer who would use American fiber if people knew how to skirt and sort it properly.

http://helenhamannonlinestore.com/main.sc

Another, smaller operation: http://www.alpacameadows.com/default.asp Why isn’t AOBA advertising here? It is a passion for millions – alpaca would brighten their day, and the products and the word would get out: http://www.interweave.com/

The New England coop http://www.neafp.com/

http://alpacanation.com/fiber/NL_fiber.asp Fiber mills and processors to contact asking if they’d like to advertise and to send surveys to: http://alpacanation.com/alpaca-services/alpaca-services-2.asp?servicetype=8

More potential AOBA customers for potential advertising dollars: http://alpacanation.com/alpaca-products/alpaca-products-fiber.asp

People who retail alpaca: http://alpacanation.com/alpaca-products/alpaca-products-retail.asp

Sell handmade items: http://www.etsy.com/

Knit & crochet site: https://www.ravelry.com/account/login