A co-operative designed to collect and process alpaca fibre has run into some snags in its first year of operation.
The Alpaca Fibre Co-operative of North America, Inc. has collected two year’s worth of fibre, but has not finalized a deal to get it made into yarn and finished products.
The co-op has 525 members, of which 20 to 25 are from Canada.
Last month, the Canadian representative on the co-op’s board of directors resigned.
“I do not feel, in clear conscience, I can recommend to members or non-members that they participate at this time,” explained Darryl Huddlestun, an alpaca producer from Twin Butte, Alta.
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However, Huddlestun insisted she supports the concept behind the co-op and wants to see it work.
She said the co-op is going through “growing pains” similar to those faced by any new business.
“I sincerely hope they succeed.”
The co-op’s president acknowledged there was “a difference of business opinion” between Huddlestun and the board of directors.
Lisa Shimeld said the co-op is learning about the industry as it goes.
“We’re brand new, we’re babies,” said Shimeld, an alpaca producer from southern California.
In 1998, the co-op collected more than 11,340 kilograms of fibre from its members, but decided last February to postpone its processing.
The co-op is negotiating with large mills and manufacturers in Peru, and decided it could get a better deal with a larger volume of fibre, Shimeld said.
She explained the co-op would prefer to work with a North American mill, but none can handle large volumes of fibre.
“Right now, the South Americans are the pros and there’s a lot we can learn from them.”
The co-op has accumulated close to 27,215 kg of fibre and Shimeld said cash flow is becoming tight.
It isn’t sure it will have enough cash to cover the costs of shipping the fibre, paying export duties, processing the fibre into yarn and finished goods, and paying duties to return the products to North America.
The board of directors is looking for ways to generate money for processing, she said.
Canadian members contributed 725 kg of fibre in 1999, and more than 900 kg the previous year, said Huddlestun.
Before she joined the co-op, Huddlestun said returns from fibre always paid for her animals’ keep, with some profit left over.
But the co-op contract commits growers to contribute half their prime clip. So far, there have been no returns.
The co-op arranged a deal for its members to buy yarn, sweaters, blankets, carpets and other goods at discounted prices this year, said Shimeld.
However, delivery of the goods took longer than expected.
The co-op is also talking to large retailers in the hopes of one day selling them products made from their fibre.
