The American alligator has long been a historical symbol for the state. Louisiana residents recognized the value of this symbol after the alligator was placed on the endangered species list in 1967. To save the alligator, investments by both government and the private sector resulted in the creation of an alligator management plan in Louisiana. A minimum release plan of farm- raised alligators combined with a public sector-regulated approach to alligator habitats led to the resurgence of alligator populations in Louisiana’s wetlands, resulting in its complete removal nation- ally from the endangered species list in 1987. This management plan has led to today’s resurgence of wild alligator hunting and farming of alligators.

Today, the Louisiana alligator makes an important contribution to the overall economy of the state of Louisiana. An LSU AgCenter study found that in 2019, alligator farmers created over $90 million in farm-gate value, and effects from their spending led to a total contribution of $235 million to the Louisiana economy. Much of these spillover effects is due to a combination of a high percentage of farm inputs purchased and profits rein- vested in the state of Louisiana.

Additionally, in 2019, commercial wild alligator hunting contributed almost $3.5 million to Louisiana’s economy. A growing opportunity for generating economic activity related to alligators is sport hunting. Between 2016 and 2018, the nonresident alligator hunter spent an average of $4,700 per trip. Many of these hunters visited for several days, not just hunting alligators, but participating in other activities such as fishing, bird-watching and sight-seeing, with 80% stating that they would revisit Louisiana for a future alligator hunt.

However, prices per foot for alligator skins have drastically fallen from their peak of $29 per foot in 2014, based on an average price per foot, to $7.50 by 2019. The depressed price of wild alligator skins has been driven by several factors, including increased competition from other crocodilians worldwide that has led to an oversupply of domestic wild skins in the marketplace. Many of these wild alligator skins are typically larger in size (alligators 8 feet or longer with bellies exceeding 45 centimeters in width) and often have imperfections such as scars and cuts. These traits make these skins less desirable in the watchstrap market and among buyers who prefer large unblemished skins to make items like handbags.

LSU AgCenter and College of Agriculture faculty are attempting to identify new markets for these less demanded skins. One promising market for the oversupply of large alligator skins is handcrafters. An LSU AgCenter economist is leading an effort to identify consumer willingness to pay for alligator craft kits based on specific attributes of wild alligator. Through behavioral choice experiments, he is investigating whether consumers would pay a premium for small alligator craft kits to make items such as wallets, keychains and earrings. In particular, he is identifying the dollar value consumers are willing to pay for attributes such as large or small scales, small or large scars, and whether the alligator was harvested from the wild in Louisiana.

In addition, College of Agriculture faculty have conducted research to assist small craft entrepreneurs interested in using alligator skins. A larger, lower-grade (higher imperfection) tanned wild alligator skin can exceed $400. The price of alligator leather makes many crafters afraid to cut their skins in fear of mistakes or wasting the material. The LSU Department of Textiles, Apparel Design, and Merchandising developed a procedure for digitizing alligator skins to scale using readily available vector- based software. This method allows the crafter to digitally place patterns on each alligator skin prior to cutting to maximize their yield and alleviate the fear. Further, the digitized skins allow for crafters to match the scale sections of the alligator across items while also avoiding or incorporating scars into the pattern.

Further, recent LSU College of Agriculture Agricultural Business alumnus Westin Cobb participated in a complementary research project funded by the A. Wilbert’s Sons research endowment to identify production costs and pricing scenarios for small craft items using alligator. Using his experience working in the small cowhide leathercraft industry, Westin developed a Microsoft Excel simulation tool that can be used and modified by crafters to more precisely measure their costs and assist in pricing for 18 different products based on the costs of materials, desired wage rates and profit margins. His work was recognized by winning first place in the Earl Heady spreadsheet competition at the Agricultural and Applied Economics Association meeting in 2022.

Work on the use of large, less-desirable alligator hides continues in the LSU AgCenter and College of Agriculture. The research mentioned above has been supported in part by the Louisiana Department of Wildlife and Fisheries and Louisiana Sea Grant. If you wish to find out more about the economics of the alligator industry, please reach out to Matt Fannin (mfannin@agcenter. lsu.edu). To learn more about research behind alligator skin craft kits, contact Jerrod Penn (jpenn@agcenter.lsu.edu). Questions about digitized alligator skin research should be addressed to Casey Stannard (stannard@lsu.edu).

J. Matthew Fannin is the William H. Alexander Professor in the LSU AgCenter Department of Agricultural Economics and Agribusiness. Casey Stannard is an associate professor in the LSU Department of Textiles, Apparel and Merchandising, and Jerrod Penn, an associate professor in the Department of Agricultural Economics and Agribusiness, was recently named the recipient of the Martin D. Woodin Endowed Professorship in Agricultural Business.

This article appeared in the summer 2023 edition of Louisiana Agriculture magazine.

The wild alligator makes an important contribution to the overall economy of the state of Louisiana. Photo by Olivia McClure

Recently born farm-raised alligators stand among cracked eggs. A minimum number of farm-raised alligators must be returned to the wild. Photo by Mark Shirley