YOUR BUSINESS AUTHORITY
Springfield, MO
It started on an airplane flight. Winston Riley was bored and looking for something interesting to read when he came across a magazine ad about raising alpacas small, gentle, woolly animals native to South Am-erica.
At the time, Riley and his wife Anne owned their own food marketing company, Culi-nary Core Consulting, which they started in 1990. Although the company was successful, the Rileys weren't satisfied with the direction their lives had taken.
When Riley returned from his business trip, he decided to do a little poking around. He used the Internet to get more information about raising alpacas, and he talked to several people who already were in the business. The more information he gathered, the more Riley was convinced this was something he and his wife should do.
In 1998, the Rileys began re-inventing their lives. They bought a house with some acreage in Strafford, constructed a three-sided building to shield the alpacas from the summer heat and strung some 4-inch-by-2-inch woven wire fence around their property to keep the animals in and predators out. Within months, Ozark Alpacas was born.
Most alpaca owners start out small and build up their herd over time. That's because alpa-cas have an 11- to 12-month gestation period. Unlike other livestock that multiply rapidly, alpacas have single births and twins are rare. Alpacas also are expensive to buy, with the average price of a bred female al-paca running approximately $17,500, according to Riley.
The Rileys grew their herd quickly, and by the end of their first year in business, they had 18 alpacas. Today, they have 50.
In 1999, the Rileys stopped doing consulting work and went into the alpaca business full time. Several concerned family members and friends immediately began peppering them with questions.
"People are always asking how raising alpacas is different than raising ostriches," said Riley. "It really comes down to supply and demand. There are only about 30,000 alpacas in North America, and the import market closed in 1999. That, coupled with the fact that al-pacas don't multiply rapidly, has helped ensure a strong market position."
The Rileys make money from their herd in two ways. Alpaca fleece, which has the texture of cashmere and the strength of wool, sells for approximately $3 an ounce. The fleece is then spun and turned into roving, which is used to make sweaters, coats, blankets, hats, scarves and other items.
The second source of income, which accounts for the majority of their business, comes from selling alpacas to people who are starting their own herds or to other breeders.
When it comes to buying an alpaca, breeding is everything, and each animal is registered using DNA fingerprinting, Ri-ley said.
Alpacas also are judged on the quality of their fleece, which is fine and dense. Since starting Ozark Alpacas, the Rileys have shown their alpacas at many shows, and their animals have won numerous awards.
"The hardest part of this is the marketing," Riley said. "Alpa-cas and alpaca fleece products have been popular in South America for years, but the North American market has lagged."
Recently, the couple spent $5,000 to join the American Breeders Co-op, a national marketing group that's working to increase consumer awareness and create more demand for alpacas and alpaca fleece products.
Currently, the group is running TV commercials on the Dish Network and Direct TV. The group also has a Web site, www.ilovealpacas.com, which provides consumers and pro-spective owners with information about alpacas.
The Rileys also are working to increase awareness and at-tract potential customers locally. April 20 they will host the Spring Alpaca Festival of the Ozarks at their farm in Straf-ford. Admission is free, and seven alpaca business owners will be at the event answering questions and showing their animals.
In addition, the Rileys have their own Web site at www. alpacaoz.com. The Web site publicizes upcoming events, such as the Spring Alpaca Festival of the Ozarks and distributes information to potential buyers.
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