Midwest Alpacas for Sale

As with every business, retirement is inevitable. These females are the best and the last of a well established herd. The owner, a long-time leader in our industry and I just had another talk about the details on these beautiful females. She has been so reluctant to let them go that I know that is why they are still available. However, she is willing to sweeten this offer and pay for the board and care for up to two full months. That way you can take ownership now and take some time to get your farm ready for them. She is finally willing to let her gorgeous girls go to a new home.

Shorn on 4/11

This is a high quality 4 in 1 package (3 females ready to breed and a yearling female) from the Midwest . What an opportunity to get retained fineness from this line at a ridiculously low price!

http://Alpacas4Less.com/BSA024.htm

Females of this caliber and consistency do not come along for sale very often. These beautiful ladies are ready to be transported to your farm right away or in the near future.

If you are even the slightest bit interested in adding great genetics from Full Peruvians, Full Accoyos, the likes of Caligula, Vengador, Camilio, Hemingway, 4Peruvian Legacy, 5Peruvian Chaccu and Crescent Moon’s Titanium then you owe it to yourself to check it out and see what’s available.

The statistics from the histograms (fiber characteristics) are included. If you need help understanding why this is an exceptional group of females… just contact me and I’ll be happy to interpret the results for you.

http://Alpacas4Less.com/BSA024.htm

It’s on a first come first served basis and this is the perfect time to start your alpaca business, or add to your existing herd with great genetics, great dispositions, great fleece and just all-around great girls at great prices.

 

Alpaca United Inaugural Meeting

Hi Alpaca Enthusiast!

I wanted to share some very exciting news with you about the alpaca industry.

Finally there is a consorted effort to recognize alpaca fiber as an economic opportunity for the public.  Alpaca United has been formed as a legal entity that is creating a brand for products made from USA raised alpacas. The CEO, Nick Hahn, who is famous for creating the brand for “Cotton” is at the helm of this “United” effort.

Here is an invitation for anyone who would like to learn more about this initiative first hand. I know that you will be hearing more about this group in the coming months. If you are a member of AOBA, you are probably receiving these emails. If you are not, then let me know that you would like to be on the list to get the latest information about the branding progress. We will make sure that you get the announcements first hand. There is an opportunity to become an investor, if you wish to get more involved. However; this email is not a solicitation… only sent for information.

Here are the particulars for your review.

ALPACA UNITED INAUGURAL MEETING

Friday May 20, 2011 7pm

Welcome to Alpaca United, the exciting new fiber company causing a “buzz” among breeders, processors and industry service providers from coast to coast!

Friday May 20, 2011 at 7:00 PM during the AOBA Nationals in Denver, CO you will have an opportunity to participate in the Inaugural Meeting where company officials will explain why, how, when and where Alpaca United is performing as the first ever industry-wide branding, marketing and research initiative dedicated to adding value to alpaca FIBER!

Chairman, Lee Liggett-NM; Visionary and Legal/Financial sub-committee Chairperson, Claudia Raessler-ME and CEO, Nick Hahn-CT will be on hand as well as several Alpaca United Steering Committee members to answer questions and conduct interviews.

Be there and be the first to be awed as we unveil the new mark, logo and tagline for Alpaca United, L3C.

Alpaca United is not about “us” or “you”, it is the national, for-profit, textile fiber company that unites “us;” all alpaca owners, growers, breeders, processors and enthusiasts, against “them,” those other fiber suppliers to the global textile industry. We know how good North American alpaca fiber is in all its colors, types and styles, isn’t it time the rest of the world knew?!

Developed by Design & Voice, a professional ad agency, Alpaca United will be readily associated with other luxury brands in the textile and garment industry. Part of our push to close the loop between alpaca fiber producers and alpaca fiber end users, our new mark will give the viewer the right impression and the right message the first time! The entire Steering Committee eagerly looks forward to sharing this excitement with you! The grand unveiling happens only at the Inaugural Meeting!

Everyone is welcome and invited to attend… it’s free. Advance registration is recommended but not required. If you wish to register… click here for the details

What Color is Your Alpaca?

Alpacas of Anza ValleyFor Alpaca Enthusiasts that are new to the business, would you like to know some of the lingo? I remember when I was new and I felt like breeders were speaking a different language. They kept using abbreviations and making assumptions that I understood what they meant. In the beginning I didn’t even know where to go to get a translation. This was especially evident when someone was describing an alpaca’s color. So here is a list of the 16 natural fiber colors represented by the Alpaca Registry (ARI) used on the ARI certificate that shows the pedigree of each registered alpaca. These colors are the standard abbreviations used for suris and huacayas, and when placing alpacas in all the show classes.

 

ARI Natural Fiber Colors & Chart Codes LSG Light Silver Grey
W White LB Light Brown MSG Medium Silver Grey
B Beige MB Medium Brown DSG Dark Silver Grey
LF Light Fawn DB Dark Brown LRG Light Rose Grey
MF Medium Fawn BB Bay Black MRG Medium Rose Grey
DF Dark Fawn TB True Black DRG Dark Rose Grey

Registration Tips

When you register your new alpaca make sure that you follow the guidelines that ARI provides for selecting the best color match. It is best to order a Color Chart from the ARI website: www.AlpacaRegistry.com. Here’s a quote from ARI on the way to use the color chart. “When identifying the color of an alpaca’s fleece, take a clip of fiber as close to the skin as possible. Match the cut end to the closest color on the fiber chart. If the color matches a shade, record this match. If you find the color is darker than one shade but lighter than the next, it should always be categorized with the darker shade.”

If your alpaca has more than one color present on the body, head or legs, there is a place on the registration for you to note that. When checking the color for the body, use the side in the midsection portion about 4 – 6 inches below the midline.

Color Checkers at a Show

Of course, for the show, the Color Checker will use the chart next to the skin with the fleece still attached. Sometimes the color checker will come up with a different color than the one on the ARI certificate. If you question that decision, you have an opportunity to be seen by a judge before they start the show. The judge will always have the final say. Just ask the checker when that will be done and arrange to have a neutral party take your alpaca to the judge.

Just thought that you’d like to know some of the insider info…

What do you get for $675,000? Answer: Alpaca

This is no April Fool’s… the alpaca industry is alive and well. The sale of one very special alpaca stud for $675,000 is only the beginning!

At the end of February, a very important event took place… The Snowmass Auction in Phoenix AZ. Most of us breeders use this event as a barometer about the price of alpacas for the year ahead. Based on the results of this event, the future looks bright, solid and prices are coming back up.

Two years ago, February 2008, the auction sales price for quality alpacas was the lowest in our industries history. There wasn’t even a Snowmass auction in 2009. However, 2010 is a very different story.

One of the reasons… in their own words: “Double “O” Good Alpacas is thrilled to announce that we are the proud new owners of Snowmass Matrix! We purchased Matrix at the Snowmass Making of Champions-Genetic Advancement Sale on February 27, 2010 for a record-setting price of $675,000, the highest selling alpaca at an auction!”

As I listened in to the live auction over the computer, I noticed that several farms bid quite high for this amazing stud. As the bids went over the half a million dollar mark, the energy got franetic! Gasps were heard and the auctioneer could hardly keep up with the increase of the bids. The serious bidding farms just kept the prices going up and up. Finally it was all over and it seemed unbelievable to realize that the final bid was $675,000!… however, Double “O” Good Alpacas feels that his worth is “PRICELESS!”

The future looks bright not only for prepotent MATRIX, but for our whole alpaca industry.

Next time I’ll comment on the high prices paid for some of the alpaca females sold at the auction.

Do you have an opinion on the results of the Snowmass Auction of 2010?

Julie

 

PHOTO:
Holding the newly acquired MATRIX, are the proud new owners, Ernie and Barbara Kellogg from VA standing next to the sellers, Julie & Don Skinner of Snowmass Alpacas.

Alpacas in Small Spaces…

 Alpacas in Small Spaces – Are They Too Crowded?
In this photo, you can see that all are eating together peacefully... for a short time.

In this photo, you can see that all are eating together peacefully... for a short time.

As I write this we are experiencing the 4th consistent day of rain and preparing for SNOW. This fact alone may not be newsworthy; however, we live in southern California! What I’m observing with my alpaca females applies whether you live in moderate or extreme climatic regions. It applies whether you raise your alpacas on pasture or in a dry lot environment. At times you may have to change their eating conditions, make other arrangements and possibly crowd them in for a short time. Now the question is: how do you know if they are too crowded?

The simple answer… I listen! That’s right; I observe and listen from a distance to figure that out. What I’ve observed boils down to … if they’re crowded they’ll do a lot of quibbling, a lot of spitting and posturing over who’s going to get to the feeder first and stake their claim. 

I count on enough space so that every single alpaca can be at the feeders all at once, without feeling crowded.  Best advise – just keep adding feeders, creating multiple feeding stations until you achieve that. And when the rains came and they all wanted to be inside at once… that’s what we chose to do. Normally these 12 wander among 3-4 other feeding stations… and they come and go at their will.

If you find yourself questioning the crowding issue in small spaces, then just spread out the feeders so that every alpaca could eat all they want simultaneously. You might consider creating special feeding areas for the cria – if they get squeezed out from the adults. Alpacas are extremely adaptable and that is why they make a great livestock business. You can start out small and expand as your needs arise. Your alpacas will let you know if they have outgrown the feeding arrangements!

 

Stability of Alpaca Market Values

julie with Coconut CrunchOne of my coaching clients asked a question that I’m sure is on the minds of many other alpaca enthusiasts … and that is all about the stability of alpaca market values.

So here is my personal opinion:

You see, because the most important source of revenue in the alpaca industry is the actual sale of livestock (particularly breeding females), and also because the 2nd most important revenue source (stud fees) are dependent upon the market price of alpaca livestock … the primary risk you take when you enter the alpaca industry is ‘market risk’. 

(Of course there ARE other risks besides market risk, … but the availability of very affordable alpaca livestock insurance eliminates many of these concerns.)

If you’re willing to embrace the alpaca lifestyle and work at it for five to ten years, most people should be able to grow their herds to a size which would be worth five hundred thousand dollars (and often more).  That’s because at today’s market prices, 35 – 40 registered alpacas are worth that much. 

So, as far as I can tell, the only truly significant risk we take when we decide to get into alpacas, is whether 35 to 40 alpacas will still be worth a half million dollars when we’re ready to get out. 

The good news is that the average alpaca costs between 10,000 – $20,000 now – the same price it cost during the introduction of the species in the U.S. 25 years ago. Although this market value is subject to fluctuation like any other market, the value has stayed nearly the same because demand has been keeping pace nicely with supply.  (The US herd is still pretty small.)

One of the reasons the Alpaca herd stays small is because the registry of imports is formally closed (here in the USA, we’re not allowed to bring in any more from outside the country) and because females can only have one “cria” (the term for an alpaca baby) each year (the gestation period is 11.5 months!) 

Breeders in the business for a decade or more will usually say they’ve seen the low-end prices for alpacas drop and the prices for the top animals increase. This is also an indication of the stability of the value in the market overall. (And a good reason to embrace the lifestyle fully if you’re going to do this, so that you really can learn how to develop high end animals.)

One of the first females we bought had a 4 month old female cria at side. I named her Coconut Crunch, CC for short. (See her 11 month picture above.) That was in August of 2004. Well, just this week, June 7, 2009, CC delivered her third baby girl! In addition to that, her first cria, Sedona, is pregnant and due in the fall. From that initial purchase of CC and her dam, our herd has grown by 6 (all females) with several more years of production ahead. We’re not ready to sell CC or her offspring yet … even though we’ve had offers from people to buy her.

These are some of my thoughts … what are yours?

Are Alpacas a Craze or Fad???

Feeding TimeWe had a visitor to our ranch the other day who had experienced a terrible financial loss in his family when they tried raising Emus & Ostriches in the 1980’s. So he was very curious about what made the alpaca investment different … since he had heard some of the same promises applied to that craze in the 1980s.

But I really don’t think they’re much alike at all, and here’s why:

First, with Emus, the profit center was supposed to be the meat market (which never really materialized in the U.S.)

With Alpacas, there is NO meat industry, and no one is relying upon it to produce revenue in their business model. 

That’s a good thing for two reasons.

First and foremost … if you have to slaughter an animal to derive value from it, you have an inherent limitation in your
model.

Second, you’re going to get kind of emotionally attached to these animals … (they’re very sweet) … so it would be heartbreaking to sell them for slaughter.

Emus also produced valuable oil, but not really enough to make a real profit.

But the biggest difference between the alpaca and emu industry is that one female emu could have DOZENS of offspring every year, which grew the USA herd size too quickly to allow for stable market values.  There was no way that demand could keep up with supply.

(The rapid reproductive rate of emus also made it difficult for farmers to keep up with expenses and needed equipment – and people were confused about how large an omelet you’d get from one Emu egg.)

Alpacas have only one baby a year, so herds grow slowly unless you buy more alpacas. (That’s also why it takes a few years to start earning significant income, and that this is an industry suitable for those willing to put in five to ten years.)

Another reason that alpacas appear to be a much hardier investment than emus is that the fleece usually earns enough money to feed the herd, and is expected to become more marketable over time.  So there is inherent stability for the alpaca farmer.

Last, because the value of an alpaca is directly related to the quality of it’s bloodline, alpaca farms often have a need to purchase animals from each other, or at minimum to buy breeding services. This creates the need/possibility to improve the genetics of the offspring and generate another revenue stream..

Long story short, although there is, of course, market risk in any investment, most of the experts I speak to, feel the alpaca market would remain stable for the foreseeable future, as it has for the past 20+ years.  (This is not a certainty though … only a probability.)

I worked with a professional researcher who tested this theory. He asked an MBA in finance who also happened to be a successful alpaca rancher what he personally would do if he inherited a hundred thousand dollars tomorrow.  He was anticipating that he would hear that he would be putting half in some type of safe and reliable instrument like treasury notes, some in stocks, and perhaps 25 – 30% into his alpaca business.

But this rancher pleasantly surprised the researcher by emphatically stating (without hesitation, I might add) that the 100% would go into alpacas. That validated exactly how I feel about my investment.

Please give me your thoughts on this subject by completing the comments section below.

Alpacas ROI – The Bottom Line

alpaca_headToday I’d like to give you a quick summary of my take on the “Bottom Line” when it comes to investing in alpacas (ROI).

1. It’s not like winning the lottery. However, more like growing your investment exponentially and in the long term profit appears very likely, if you’re willing and able to fully embrace the lifestyle for 5 to 10 years. 

 2. Although there are five main “revenue streams” in the Alpaca industry (livestock sale, stud fees, boarding fees fiber sales, and product sales) … by far the majority of the income will come from sale of livestock. 

3. Because the income comes largely from livestock sale, you’ll need to reach a critical mass in your herd (about 20 -30 Alpacas) before you can generate a substantial income.

Prior to reaching this level, it’s usually not a good idea to sell too many offspring because it interferes with your ‘production capacity’.

(Generating income requires that you sell your females … and if you sell too many before your herd is large enough, you won’t be able to increase in size as fast by breeding)

4. There are a number of significant tax benefits and write offs, which vary from state to state. You’ll need to consult with a certified accountant to advise you in particular, however, the government usually provides incentives to make it easier to get started, as long as you treat your Alpacas as a BUSINESS. (See the Post: Let Uncle Sam Buy Your Alpacas For You)

5. Although there are a variety of ways to reach critical mass, how much you invest in a quantity of livestock to start with, and how avidly you engage in the lifestyle are the two most important factors.

Theoretically, it’s possible to buy your way to critical mass right off the bat … however, this might also overwhelm the inexperienced Alpaca investor.

6. You don’t necessarily have to have the land or the money in the bank to get started.  Options for boarding (“agisting”) and financing your initial Alpacas are available from most breeders.  (More on this in a future post.)

7. You can (and probably should) insure your Alpaca investment at an approximate cost of 3% of the value of your herd, per year. (At the time of this writing.)

8. Generating a 6 figure income each year is realistic if you’re willing to grow your herd to 35 to 40 Alpacas.  Some farms do a lot more than this, and 7 figures is not impossible. (Even in a down economy.)

9. Losing your initial investment is probably less common in the alpaca industry because proven females should multiply their values by producing 7 or more offspring over the course of their lifetime.

10. If you’re only in it for the money … you might be better off doing something else.  But if you love and passionately embrace the lifestyle, the money should follow.

This is just a quick summary on the “Bottom Line” return on alpaca investing. What are your thoughts? Please comment below.