Alligator farms are a part of the luxury economy that is now suffering since the economic decline in the past year. Most people will not realize the economic effects on farmers since the hides produce niche products, but alligator farmers are hit especially early on when times get tough.
Here’s a story about an alligator farmer for Savoie’s Alligator Farm in Louisiana, who is struggling to find a purchaser for alligator leather hides: Alligator Farming Struggles Along With Economy.
Louisiana’s swamps and bayous are the ideal natural environment for alligators, where they thrive naturally. The skins are shipped through distribution chains through wholesalers and globally to production artists who craft fine alligator purses, handbags, wallets, belts, and other exotic luxury merchandise. Alligator farming produces over $60 million dollars annually, and the best farmers sell tens of thousands of wholesale alligator leather hides each year but sales have all dried up – when times are tough, the market for exotic skins dries up as well.
This news isn’t without a silver lining for both the farmers and for the investors, manufacturers, and production artists: Lower demand means higher supply, which often means lower prices for larger bulk orders if going through direct channels. Alligator leather is a luxury commodity that is always affected by supply and demand. With all of the hides ready to be tanned, for someone who can make the investment, now is a good time to invest in alligator leather – it has and will remain the luxury leather lover’s leather.