The Eastern Cape Development Corporation (ECDC) has helped consolidate the province’s fledging alpaca industry with a modest loan of R370 000 to eight employees of the Famous Wool Company (FWC) who used it for buying capital equipment.

The Mountain View Alpaca Ranch, started over three years ago in Lady Grey, by Warren and Dawn Kay, is one of a growing number of farms in the Eastern Cape, and in South Africa which breeds the rare alpaca, a member of the camel family and related to the South American llama.

Employees-shareholders, together with the founder of the Famous Wool Company Dawn Kay and the Eastern Cape Development Corporation own The Famous Wool Company. In time, the ECDC wants to pass its share to the employee-shareholders.

“We saw an ECDC loan as a catalyst for this community to become empowered and to participate economically in the area. The equipment was essential to increasing the venture’s potential to employ and empower many more people,” says ECDC project development manager Miss Tokozile Boboyi.

Already the project’s impact is being felt in the community. “Yes, the financial benefits are there but employees, now have improved skills, produce products, comparable with the best in the world and that is immensely gratifying. What makes this joint venture unique is we are working with a wonderful, scarce and valuable global commodity which is locally grown,” says Mrs Kay.

Furthermore, the FWC, whose main business is processing the alpaca wool and turning these into products, has become one of only a handful of buyers of this wool and “this brings a lot of security and stability to this business,” says Mrs Kay.

The wool’s qualities have niche appeal and the fibre is often compared to cashmere. Its romanticised connection with the Inca’s nobility further heightens its appeal. On a practical level, it is three times warmer, stronger, more versatile than sheep’s wool and comes in 22 natural colours.

For these qualities, consumers are willing to pay a premium for alpaca’s very finest yarn - R400 per kilogram compared to R35 per kilogram for sheep’s wool.

However, this premium hasn’t flowed, as yet, into South Africa. A significant investment of time, money and people resources has been made in order to produce quality products. Extensive research and development was also required to master processing skills, designs, product ranges and packaging solutions.

In addition, while these friendly and easy-to-care-for animals live up to 25 years, a herdsire male may cost upwards of R60 000 and a quality, pregnant female from
R45 000. The national herd is currently stands at over 400 animals. About a hundred are located in the Eastern Cape; most of these in Lady Grey.

Yet the growth in the herd signals modest progress across other fronts. Operations have expanded into fibre processing and its product ranges now includes felted hats, insoles and bags, knitted sweaters, hats, throws and woven scarves. Commissions for other products are also on the increase.

“One of the most important objectives of this project is job creation. Our staff complement has grown to 13 from our initial six. During our busy production times, this number increases to 30 and brings us closer to our goal of being the largest employer in Lady Grey within two years. Our employees’ skills have also grown in leaps and bounds,” says Mrs Kay.

The number of breeders in the Eastern Cape has also grown with the number now six; four in Lady Grey, one in Queenstown and another in Bedford, “so there is definite growth in the animal side which can only benefit the Famous wool Company,” adds Mrs Kay.

But skills development has not been restricted to the FWC’s employees or fibre-processing. The ECDC has also assisted the employee-shareholders by offering business and mentoring courses. Furthermore, Kay has helped train ladies who are involved in another municipal project, to spin, knit, dye and weave merino wool.

Some serious attention is also being given to the export market to ensure that there is demand for the FWC’s products throughout the year. And with worldwide production of the alpaca yarn standing at 4 000; providing little competition to other fibres such as cashmere (5 000), mohair (22 000) or sheep’s wool (83 million), the sky appears to be limit for the FWC.

Famous Wool Company founder (front row, second from left) Dawn Kay with Lulama Qayi, Selina Msebenzi. In the middle row are Gladys Sixesis, Mirrium Malefane, Beauty Lebasa and Anna Shorse. In the back row are Agnes Sekoebetlane and Joyce Nonjolo.

The FWC has chosen as one of a select group of exhibitors at the Spier Market in Cape Town. Crafters for this market, which takes place from October to April, are chosen for their high-standard of original hand crafts which reflects a distinctly SA style.