‘PREMIUM FLEECE’
TAKING ALPACAS TO THE NEXT LEVEL

'Supporting Alpaca Breeders'

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AAFT, in conjunction with the
Premium Fleece Breeders Group,
are proud to present the ‘Premium Fleece’ workshops.

Topics include:

• Breeding objectives for high value fleeces
• Understanding heritability of fibre traits
• Market signals from the ‘luxury’ fashion sector
• Maximising market opportunities for alpaca fibre
• Genetic Improvement Fleece Technology (G.I.F.T.)
• Introduction to the Premium Fleece Breeders Group
• Fleece preparation for the Premium market
• Latest fibre production research

Presented by Paul Vallely
Owner, Australian Alpaca Fibre Testing, Coordinator of the Ultrafine Bale Scheme and Chairperson, Premium Fleece Breeders' Group.

Cost: $66 per person or $110 per couple – includes lunch, workshop/research notes and complimentary G.I.F.T. analysis voucher.

Duration

OPENING TALK & INTRODUCTIONS

30 mins

20 mins

‘REALITY CHECK’ – CRITICAL ISSUES FOR A VIABLE ALPACA FIBRE INDUSTRY (INCL GROUP DISCUSSION – IS THE CART CURRENTLY BEFORE THE HORSE?)

30 mins

10.00am

MORNING TEA

30 mins

10.30am

DEVELOPING A BREEDING PROGRAM FOR PRODUCING PREMIUM FLEECES
THE ‘ULTRAFINE BALE SCHEME’ – PAST, PRESENT AND FUTURE

11.00am

11.15am

45 mins

12.00md

THE 'ULTRAFINE BALE SCHEME' - PAST, PRESENT AND FUTURE

12.30pm

2.00pm

2.30pm

45 mins

CLOSE

LUNCH

CHARACTERISTICS OF ALPACA FIBRE - POSITIVES AND NEGATIVES.

INTRODUCTION TO 'GENETIC IMPROVEMENT FLEECE TECHNOLOGY'

PRACTICAL DEMONSTRATIONS OF SAMPLING FROM ALPACA & TESTING OF    DIFFERENT SITES ON ALPACA

30 mins

45 mins

30 mins

15 mins

15 mins

3.00pm

4.30pm

3.15pm

3.30pm

15 mins

‘STARTING WITH THE END’ – THE IMPORTANCE OF MARKET SIGNALS FOR THE ALPACA FIBRE INDUSTRY – DEFINING ‘PREMIUM FLEECE’

'BRINGING IT ALL TOGETHER' - INCLUDES FINAL QUESTIONS

SHEARING AND FLEECE PREPARATION FOR PREMIUM FLEECE PRODUCTION

OUTLINE OF LATEST RESEARCH RELATED TO FIBRE PRODUCTION - INCL DISTRIBUTION OF PAPERS

30 mins

30 mins

4.00pm

AFTERNOON TEA

1.15pm

9.40am

Time

Topic

WHERE TO SEE US

AAFT will be conducting
the following “Premium Fleece’ workshops in the coming months.

To book your place at one of the Premium Fleece Workshops, phone AAFT on (61) 2 4834 2132 or send an email via this link - Workshop Bookings

PREMIUM FLEECE & WORKSHOPS

A PATHWAY TO A VIABLE ALPACA FLEECE INDUSTRY

(A presentation on the Premium Fleece concept given by Paul Vallely, AAFT at the Madrid International Alpaca Congress, June 2010)


Before I commence my talk to you today, please allow me to give you some background of my involvement in the alpaca fleece industry so you accept that my presentation today isn't based on reading a couple of farming magazines during my flight over here to Spain.

For the past 5 years, I have owned and managed Australian Alpaca Fibre Testing or AAFT. AAFT now tests over 20,000 fibre samples per year from alpaca growers throughout the world. Furthermore, I am pleased to say that we have recently been appointed as the fibre measurement provider for the newly created European Alpaca Register. Based on our experience with fibre testing and practical experience with breeding for fine fibre, we also carry out consultancy work to support breeders in developing breeding programs. We also conduct alpaca specific research and are responsible for the highly successful ultrafine bale scheme that I shall refer to in my talk.

For as long as I can remember, breeding objectives for improving alpaca fleeces have reflected the dominance of the showring rather than reflect the demands of the commercial fibre markets and and let me assure you, they are two quite different sets of objectives.
At this point, may I ask you to join me on a little reality check regarding the alpaca industry.

For many, the test of success for alpaca breeding is when the respective alpacas are paraded under the subjective scrutiny of show judges amid hopes of adornment with show ribbons. The ribbons satisfying the notion of 'value adding' as they appreciate the value of the successful alpaca when sold to another breeder and obviously with a view to more prize winning progeny - and so the cycle continues.

During these shows or sales, much attention is directed to the fleeces. We utter traits such as fineness, crimp, style, lustre and uniformity. We talk of how the fleeces look and feel, and we refer to a multitude of available statistics and graphs generated from testing the relevant animals fleece samples.
However, behind the ribbons and the catalogue descriptions, there is the inescapable irony - alpacas rarely produce fleeces that cover the cost of shearing.

And yet, there is an even greater irony. Alpacas are clearly capable of producing fibre that is suitable for the most elite, the most luxurious, and often the most expensive garment product ranges.

It is actually quite easy to find evidence of this. Fashion houses around the world stock extrafine alpaca/wool blend suits that carry price tags well in the tens of thousands of dollars. Eco-friendly garment stores in Europe carry high quality products using undyed coloured alpaca fibre, highly sought by a burgeoning number of 'environmentally conscious' consumers. With the use of innovative processing, the silkiness of suri fibre has been used for 'special wear' garments that hopefully will result in a range of opportunities for suri breeders. Yet the use of premium alpaca fibre in these products is limited by the availability of suitable fleece consignments - but I stress the word 'suitable'.

As the alpaca industry continues to seek its sense of purpose somewhere in the show circuits, the alpacas' natural fleece attributes sit waiting upon a silver platter.
So how can we reconcile this apparent contradiction of low prices in the face of such opportunities? My suggestion is that we realign our breeding objectives, and perhaps show-judging criteria, in order to embrace the demands of the global premium fibre markets.

To illustrate the viability of producing for the premium fibre market, the following table provides the highest price achieved and the relevant market indicator for price points in the Australian superfine wool market during February 2008. I have picked February 2008 to illustrate the price points prior to the global downturn in commodity prices, but acknowledge it may be some time before we achieve similar premiums.

Micron Top $ per kg for the season (clean) Market indicator
(clean)
13 $833 n/a
14 $292 $105 (14.5)
15 $52 $39
16 $36 $22
17 $26 $15
18 $24 $14
(source Ausfine Wool Co Ltd)

To relate the above table to alpaca fibre, it has been reported that alpaca is suitable to be blended with wool that is about 3 microns finer. For instance, 15 micron wool processes in a manner similar to 18 micron alpaca. In fact our ultrafine alpaca bales of 18 microns are often blended with 14.5 micron merino.

The Achilles Heel of using these price premiums as an indicator of what might happen in the future is the fact that China and India are now key players in the processing and manufacturing of premium textile products. This effect could be seen as either an opportunity or a constraint to fibre producers depending on whether reduced labour costs result in increased margins or reduced price points throughout the supply chain. None-the-less, the use of expensive luxury garments to realise a sense of esteem and success might always be a part of consumer psychology.

I think it is worth remembering at this point that alpaca fibre is marketed in small volumes with commensurate high logistic costs. It is a basic economic rule that sustainability of low volume production is through high value product. Having said that, lets get back to the price premium issue.

The House of Alpaca, which is one of Australia's largest buyers of alpaca fleeces, are currently paying from $44 to $70 (AUD) per kilo for ultrafine grade alpaca fleeces (under 19 microns), while 20 micron fleeces are making up to $21.60 per kilo. These price premiums reflect the wool price premiums for commensurate micron categories.

However, before you jump to the conclusion that your 17 micron alpaca fleece should be making $300 per kilo based on corresponding merino fleece values, there are two important points to make, apart from the obvious point that we are still experiencing the GFC.

Firstly, these prices are based on the consistent and reliable supply of fibre. With the Australian ultrafine bale scheme, we are aiming for at least one tonne of sub 18 micron consignments per year. Admittedly, we are a long way from that, however, I am optimistic.

The second point is that the higher the price paid, the higher and more demanding are the specifications.

During the set-up phase of the Ultrafine Bale scheme, AAFT conducted basic market analysis to identify opportunities for premium alpaca fibre by speaking to existing and potential buyers.

We found that alpaca fibre was generally regarded as a 'prestige' fibre with its potential to be used in a similar manner as cashmere given its ability to produce soft, luxurious yarn or fabric and its relatively high tensile strength. Many considered alpaca as suitable for blending with superfine/ultrafine wool for use in top end fashions.

An interesting point to come out of the analysis was that crimp definition and lustre had very little influence on processing performance and therefore little impact on the relative value of fleeces
On the negative side, there were a number of serious concerns.

Alpaca was seen as possessing far too many coarse fibres, both in terms of the average fibre diameter of fleeces and in terms of the incidence of �guard hair� and other problematic fibres. It also has a reputation for variation of colour among individual fibres. In addition, fibre length of consigned alpaca was reported as often too long for processing.

Apart from the issue of colour variation, addressing these concerns is actually easier than one might think. The problems of alpaca fleece are attributable to fibre traits that are all highly heritable - with time and with the aid of latest technology and methods, they can be effectively addressed through genetic selection. Allow me to stress this point as it provides breeders of natural fibre with a substantial advantage. The fleece traits most in need of genetic improvement are also some of the most heritable traits. Unfortunately, few breeders capitalise on this advantage.

I shall now present to you a breeding model that is aimed at carving a niche for premium alpaca fibre and we simply call it 'Premium Fleece'.
The Premium Fleece concept incorporates three basic tenets that are based on proven science and market analysis.

Firstly, breeding programs need to be sensitive to key price drivers such as those identified earlier in this talk. In other words, breeding objectives should reflect what fibre processors or buyers tell us they desire - not what we want them to desire. To use an economic cliche, breeding objectives need to be consumer focused.

Secondly, breeding regimes need to encompass the scientific principle of genetic improvement through selection of highly heritable traits. (Brien 2006, Kondinan 1998 and Hynd 1997). This might incorporate indexing of multiple traits such as combining breeding values for fibre diameter, fleece weight and standard deviation of fibre diameter (SD) so that a number of key fleece and body traits can be pursued concurrently. These principles have been scientifically proven over time and form the basis of flock improvement in the Australian wool industry (Kondinan 1998).

It is this issue of heritability that plagues many alpaca breeding programs. I have seen on so many occasions, breeders selecting alpacas based on traits that have low heritability. If a trait possesses low heritability, then there is very little chance that that trait will be passed on to the progeny and in these cases, our breeding programs are relying on nothing more than pure luck rather than judgement and will result in almost no genetic improvement.

The following table gives examples of heritability scores for certain fleece traits.
Trait Heritability Score
Fibre diameter .55
SD of fibre diameter .45
Fleece weight .40
Fibre density .30
Secondary/Primary ratio .25
Micron blow-out .20

As I have already mentioned, it is a most fortunate coincidence that the traits which are the key price drivers for premium fibre just happen to also be highly heritable.

The third tenet is the science of genetics that tell us it is far more effective to measure the very traits that form the breeding objectives rather than select for traits that are merely correlated to the desired fleece traits (Hynd 1997). In other words, if you want to decrease fibre diameter, then you should measure and select for fibre diameter and not indirect traits that might only be related to fibre diameter.

In addition, the Premium Fibre approach can also involve the advanced breeding system of Genetic Improvement Fleece Technology (GIFT) (Vallely 2009). This system involves reducing 'across fleece' variation by testing for three recognised sites over the alpaca. It also incorporates fast tracking the reduction of coarse fibres by measuring 'across staple' variation. If anyone would like to know more information on GIFT testing, then I refer them to the AAFT website.

Possibly the most important point to make on all this is the fact that the whole concept does work. I am very pleased to be able to say to you that a significant number of alpaca breeders who have adopted the Premium Fleece concept have recorded substantial improvement in their fleece statistics. I am more than happy to refer you to breeders who have recorded genetic gains from following these principles. It might be noted that some of these breeders are now regularly producing fleeces that are being sold for more than $100.00 each for the ultrafine bale scheme.

Finally, may I make the point that I firmly believe a viable alpaca fibre industry is crucial for the future of the industry. As adorable as alpacas are, I cannot see how current prices for alpacas can be sustained if their purpose in life is restricted to being show animals, pets or fox guards.

I will finish now by quoting one of our clients who has adopted the Premium Fleece concept. "The sense of achievement from producing some of the world's most sought after fibre is breathing new life into raising alpacas' it gives it a real sense of purpose and a justification for future investment".

References:

Brien, F. et al (2006) �Merino Selection Demonstration Flock Trial, SA EC193� Final Report. AWI Ltd & SARDI.

Hynd, P., Ponzoni R. & Hill J. (1997) �Can Selection for Skin Traits Increase the Rate of Genetic Progress in Merino Sheep. Proceedings for Assoc Adv Animal Breeding & Genetics.

Kondinan Research Group, (1998). Principles of Merino Sheep breeding.

Wang, L., Wang X., & Liu X (2003). �The Quality and Processing Performance of Alpaca Fibres�. RIRDC Publication 03/128

Whitely, K.J. (1972), �Components of Variation in Fibre Diameter, Lecture to Wool Preparation Symposium, Sydney Technical College.

Vallely, P. (2009) Genetic Improvement Fibre Technology, AAFT. Crookwell. NSW.

Please note, the writer of this paper discloses his commercial interest in the area of fibre measurement.