IDENTIFYING

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IDENTIFYING OVERCOMING OBSTACLES - PARTNERSHIPS
Lyn Lawhead Alligator Trading Company, Inc.

• As stated - I am Lynanne Lawhead or Lyn as Im
  known in the alligator industry. Before I get
  started on what Ive been asked to speak about -
  it was suggested that to handle any nerves for
  public speaking. I should think of you all in
  your underwear -I know this is an usual
  suggestion. Im sorry I just cant do that and
  after yesterdays presentations on fashion, the
  articles on exhibit and on the fashion runways I
  have instead dressed you in your favorite exotic
  leather and you all look rather grand.
• That suggestion has now given you an inkling of
  how and why Im in the alligator business -
  imagination and challenge. What has kept me in
  the business is persistence in seeing a challenge
  through! From my understanding - these were part
  of the reasons I was asked to speak to you. For
  further background - I am the former Executive
  Director and Co-

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• founder of American Alligator Cycle of
  Protection, Inc. (AACOP). It is a non-profit 501
  c-3 educational program developed for 2 reasons -
  general education and industry education.
  Originally, the ideas came from the alligator
  trappers and eventually from every segment of
  alligator habitat states and alligator resources.
  AACOP has 5 phases of education with the first
  phase about public awareness and safety and the
  other 4 phases will be a Curriculum Program for
  grades K - 12. The BE GATOR SAFE program was
  the first phase to be completed since testing
  results for the curriculum program proved it was
  needed immediately. This program originated from
  FLs Game Fresh Water Fish Commission and was
  expanded and enhanced for the 9 southeastern
  states. The Southeastern Association of Fish
  Wildlife Agencies endorsed the program.
• BE GATOR SAFE BROCHURES DISPLAYED AND DESCRIBED
• The three agencies involved formed a
  collaborative effort between a government - FL
  Fish Wildlife Conservation Commission,
  non-profit - AACOP and private sector - Smittle
  Associates, Inc. (Public Relations Company) to
  accomplish fundraising, production and
  distribution of the program.

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• We provided brochures, PSAs with Jack Hanna as
  spokesperson for media and park displays as well
  as outdoor signs for boat ramps and parks.
• BE GATOR SAFE PSAs SHOWN
• These materials were released in 7 of the 9
  alligator habitat states in 1999. In May, 1999 -
  GATORLAND sponsored a promotional tour that gave
  each of the states involved an opportunity to
  develop a press conference or a workshop. We
  covered 5 states. In Texas - Amos Cooper and
  Monique Slaughter developed a workshop for their
  area participants.
• Show OUTDOOR SIGN with TX Decal
• INDUSTRY EDUCATION
• AACOPs - industry education has been provided
  through some Trade Shows buy mainly through its
  quarterly newsmagazine - GATORTALES. It is a
  formal tool of communication that allows anyone
  in the industry to gain

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• knowledge of what is happening to the alligator,
  rules and regulations and activities that are
  taking place on the industries behalf or what
  they can participate in if they so wish.
• You are probably wondering how this relates to
  my presentation. MORE than you would think. Over
  the last eight years I have basically been in
  apprenticeship while representing a non-profit
  and eventually working part-time in the private
  sector.
• The knowledge and resources I have gained from
  developing and managing AACOP while working in
  the private sector has placed me in a position to
  accomplish much for our companys goals. My
  understanding from working and dealing in both
  sectors is the reason why I have been asked to
  speak today.
• HISTORICAL TOUR OF THE LAST 10 YEARS IN THE
  ALLIGATOR
• INDUSTRY
• Let me take you on a very simplified historical
  tour of the last 10 years in the alligator
  industry, which can relate to other exotic skin
  industries as I talk.
• Ill start in 1990, when I became aware of the
  industry and was being introduced into it. At
  that time - the market prices were in the 3rd
  year of the

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• highest value for the producer, which only
  lasted till the end of that year. In 1991, the
  market crashed causing the prices to plummet.
  Thereafter, the market for the next 3 years was
  very poor for the producer and very good for the
  buyers the buyers were able to buy skins by
  picking the best and leaving the rest/or paying
  below actual value or not at all for the rest.
  (Cherry packing/or Fire Sells) In the latter
  1990s - several groups and companies made an
  effort to change the pattern of buying/selling by
  working cooperatively. Due to short term thinking
  and compromise of the agreements and goals some
  of the groups/companies programs came inundated
  with the same problems in the past. Also, during
  the 90s there was a growing demand to change the
  industrys activities and funding of projects -
  one way was through marketing practices - some
  states were able to supplement that need with
  further input from their Dept. of Agricultures
  Marketing Programs.
• ALLIGATOR LEATHER VIDEO from FL LA Depts. Of
  Agricultures
• shown with Point of Sale Materials displayed.
• With the changes came an increase of finding
  other resources for research of the end products
  and marketing priorities such as the projects
  from Louisiana State University dealing with
  Alligator and Ratite that are funded from
  organizations in Louisiana and Florida.

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• Another source of continuing change to effect the
  industry is communication.
• Previously - a producer relied on other
  producers and a hide broker for what was
  happening in the industry. Now there are
  associations for producers - trappers or farmers,
  government agencies, and the access to industry
  contacts and their data has begun to open the
  means for a producer to choose the best course of
  management practices for their business. One tool
  of this form of communication is GATORTALES -
• DIFFERENT ISSUES WERE HANDED OUT
• Its final goal is to become a Trade Magazine
  or 2 of them - one for the producer and its
  trade and one for the manufacturers/retailers and
  fashion trade. This is because the industry has a
  broad spectrum at one end and everything in
  between leading to the final result - Fashion
  Products.
• GATORTALES has evolved from a BI-annual
  one-state newsletter to its latest issue of a
  quarterly newsmagazine distributed in the USA and
  overseas.

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• GATORTALES is in the next stage of expanding
  into the final goal of a Trade Journal through a
  publishing company partnering with AACOP to make
  this happen. AACOPs hope is through this
  partnership the Trade Journal will continue to
  evolve to meet and assist the growing needs of
  the industry to enhance the individuals and
  itself.
• Other Forms of Communication
• This conference is another form of
  communicating to everyone that is interested in
  obtaining the necessary knowledge to promote
  their own company and in the long run their
  industries.
• Research is another form of communication when
  the end results are known and utilized by the
  industry. The information from research can
  assist the industry to further understand the
  alligator in management concerns or further
  utilization of its by-products while marketing
  date is used to best reach the final destination
  of the end product for our consumer. Most of this
  research is being done through collaborative
  efforts from government, private and public
  resources.

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• The greatest way to expand and enhance this
  process would be to utilize - non-profit 501c-3
  or c-6 organizations to gain further funding
  resources with a tax and/or advertising benefit
  to the funder.
• Education of the industry can allow a forum of
  continued communication and understanding between
  the producers, wildlife management, agriculture
  agencies and the private sector. What would be
  met are the needs for management, marketing,
  distribution and promotions of the alligator
  by-products.
• Daily Reminder As our knowledge grows so does
  the power we have in being successful as long as
  we hold ourselves accountable.
• Lets take one more lesson from the crocodilian
  industry. Of the 500,000 classic crocodilian
  hides (including American Alligator, Nile
  Crocodile, Australian Saltwater Crocodile and
  Indonesian Crocodile) available in the world
  market today, about 300,000 are American
  alligator skins. About 1,000,000 Caimans skins
  are available to the market.
• Historically, the American Alligator enjoyed
  great success in the North American Fashion
  Industry from the early 1900s to mid 1960s. In
  1967, the

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• Endangered Species Act was enacted and closed
  the alligator industry down. When the American
  alligator became a Protected Species and was
  removed from the endangered species list in 1978,
  the North American market for alligator hide was
  nonexistent. There was still an international
  market in European, Middle East, and the Pacific
  Rim countries, however, in the 1970s, the
  European market for exotic hides suffered because
  of animal rights concerns. The high fashion
  industry has continued to use alligator hide for
  its exclusive designs. The demand for alligator
  hide in North America continued to remain poor
  until the recent interest that has been seen in
  the recent fashion shows from designers in Europe
  and USA.
• What will it take to get the American alligator
  or other exotic skins to be a fashion mainstream
  item?
• Everyone at the producer level - no matter if
  you are a farmer, trapper, buyer or a tannery
  must realize that each have a vested interest in
  producing a product that in turn can provide a
  monetary return to each respectively. Once
  everyone understands this, just maybe a true line
  of communication can be established.

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• What this can start - is a combined effort to
  produce a better product without everyone
  spending time and money trying to figure out how
  the next person is trying to steal his profit
  away.
• I want you to really LISTEN and I mean LISTEN -
  what we are dealing with is a limited renewable
  resource whether farm or wild which is reaching
  its limit. The wild habitat is being encroached
  upon by man through his lifestyles of work or
  home or play or just plain greed. When do we need
  to worry - very soon.
• What will make the difference? A good line of
  communication and an education program supported
  by all levels of the industry. More research is
  needed that has good an variable capabilities to
  assist producers. A strong marketing plan is also
  needed to lead us into the fashion mainstream
  where the alligator and exotic skins deserve to
  be.
• What are the changes needed to meet long-term
  utilization and sustainability of the industry
  and its resource?
• The industry or industries must recognize that
  short-term thinking and actions only benefit a
  few and rarely meet the everyday needs of the
  producer.

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• The path for a healthier and competitive
  industry is through long-term
• collaboration of using all resources to become a
  successful and growing business. This would be
  through coordination of cooperative and
  accountable actions.
• It bluntly means to work together whether you
  are a trapper, farmer, broker, tanner or vender
  and even if you dont like each other. The bottom
  line is growth with financial success as an
  industry utilizing good business judgment and
  skills. Remember, the resource is limited and
  from the wild and it is what we all make our
  living from and for.
• You say that it is simple enough for me to say
  and you are correct!
• I have sat through a number of meetings where
  men and women have come together with several
  agendas other than the one they were supposed to
  be there for with the main one being-whom will
  keep control of the industry. Not what they could
  accomplish and how it would be done and then -
  whom - involved would make it happen.

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• What shows and is recognized most in all
  organizations is there are really only a few that
  actually do the management/administrative work.
  The rest pitch in when they are interested or it
  meets a specific need or project. If there is no
  input or ownership gradually a select group gains
  control.
• We are talking politics now - how can this
  control be changed - not ignoring it or just
  talking or complaining about it. What keeps the
  status quo - is ineffectual leadership and
  non-participation.
• The interesting and most revealing trait that
  everyone in the exotic skin business has
  is-INDEPENDENCE. Our ability to hunt, farm,
  process and sell a wild sustainable resource
  gives us a distinction that the fur industry has
  and its to their industry that we must take a
  lesson from and learn.
• They have dealt with most of the same issues of
  control and producer problems. After recognizing
  in fighting, not using all available resources to
  meet their BUSINESS needs and not preparing for
  outside attacks through education - their market
  almost died. They took a hard look at their past
  and recognized

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• They had no unity and no trade association
  working for the fur trade (retailers
  manufacturers)
• Their industry was 85 small businesses that were
  family run with a lot of egos to deal with and
  many did not understand the meaning of corporate
  responsibility
• Environmental aspects and USA economy assisted in
  the slide of fur production
• Staff were not trained to address issues (fur
  coats had always sold themselves)
• Industry was too reactive when it should have
  been proactive
• Fur needed to be positioned as fashion and as a
  luxury item
• What did they do from there they formed a
  strategic plan with a budget for their staff to
  focus on four levels
• 1. Media and public relations
• 2. Fashion promotion
• 3. Government relations
• 4. Membership services

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• From their plan they recognized they had to
  implement
• Consumer research to find out (a) who the fur
  customer was and (b) what were the key messages
  to deliver to the customer
• Fashion ads were developed
• Contacts with fashion editors were made and
  contacts kept current
• And much more has happened and continues to
  happen from their plan
• It is from their past mistakes and
  determination to change and build from strengths
  to succeed in todays market and continue as many
  small businesses that are cooperatively working
  in the corporate world.
• It has taken the Fur Industry 8 years with
  continued struggles around the world to begin to
  see the industry benefit from growing consumer
  demand for their products.
• Speaking of the fur industry also brings one
  more issue that we as exotic skin representatives
  must recognize and deal with. The
  misrepresentation of a product. When we deal in
  crocodilian there has been a continued problem of
  a

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• product being sold as another product. Example
  Caiman or crocodile as American Alligator. Again
  - its to select few that it benefits in the
  short run. In the long run, the effects of these
  misrepresentation is to our customers - now or
  potential.
• Each exotic skin represented here today has
  its own niche market. When another skin claims
  it is yours even though there are laws in place
  to prevent or allow it. Then, we must ask what
  can we do about it Again it is education -
  general public education, marketing education and
  holding the industries accountable that will make
  the difference on how we can change these
  activities from occurring. Again - cooperatively
  working together and holding industries
  accountable.
• When we leave here tomorrow - will we take with
  us the seed of competitive knowledge to be
  nurtured through positive actions or will we go
  back to the same attitude of it really doesnt
  matter for my company or the industry Im in.
• Organizations come and go and either begin or
  stay with only one objective to meet. It takes
  time and effort to build an organization or
  company

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• with its main goal being to benefit the owners
  and the resource. In the long run if the
  organization or company is successful it will
  have a ripple effect that will enhance the rest
  of the industry.
• As one last thought - in a cooperative effort
  everyone that has the
• resource needs to have the knowledge for all to
  succeed and control.
• I wish you the best in your endeavors and thank
  you for listening.