A Dorset businessman is opening an Alpaca wool processing plant, after receiving funding from the Rural Development Programme for England (RDPE), with the help of Business Link.
Phil Allen, a self-employed structural engineer from Holt, set up Two Rivers Mill with telecoms engineer Pete Roissetter, after they noticed a gap in the market for a specialist alpaca fleece processing factory which didn’t insist on large minimum order quantities.
Phil said: "Although I have never worked in rural business before, I live on a farm and Pete owns an Alpaca herd. Through conversations with various parties we realised that many Alpaca owners struggle to know what to do with the animal’s fleece. Many existing plants require a large minimum quota of fibre for each order, which is just not feasible for small Alpaca herd owners."
The new processing plant, based in an industrial unit in Wimborne, near Bournemouth, will have a minimum order of approximately 10 kilos, which it will spin into yarn for weaving or knitting.
The business was awarded £16,000 from the RDPE programme, to help with start up costs.
The grant, which was match funded by the business, paid for the fibre processing machinery – which was sourced second hand – the first year’s rent, and consultation costs which allowed them to seek advice and assistance from one of the UK’s top specialist fibre technicians .
Phil said: "We contacted Business Link after hearing about it from another farmer and were told about the RDPE programme when we discussed the mill venture. The application process was quite involved, but it meant that we had to really fine tune our business plan and think about things which we would not otherwise have considered.
"For example, we were originally planning to convert an unused barn to house the processing plant, but while going through the application process we discovered that an industrial unit would be much more cost effective and suitable."
Since 2008 Business Link have helped over 400 farms and rural businesses receive funding through the RDPE Programme, with awarded grants ranging from £4,000 to £2 million.
Business Link adviser Tim Bowden, helped the business with its grant application. He said: "The RDPE programme is primarily aimed at land-based businesses, such as farms. However, other non-farming businesses can also apply if they can demonstrate benefit back to the land based sector.
"The RDPE programme is designed to improve the competitiveness and sustainability of the wider rural economy. The grant was therefore a natural fit for the Alpaca fibre processing plant, which will have obvious benefits to Alpaca farmers. There is over £150 million of funding available across the South West region, and we are urging more entrepreneurs to look into rural business opportunities."
The factory, which will open in June, has already exceeded its first year’s order expectations.
"We’re expecting slow but steady growth over the first couple of years," said Phil. "We already have three times the amount of orders for this year than we originally expected."
