I received these 10 questions from a gentleman in Vermont who is considering getting started in the Alpaca business. I decided to post his questions and my responses because I think it is important for those who also might be considering purchasing Alpacas to see what sort of questions and concerns other potential new breeders have about the Alpaca business.
1. What is the biggest challenge you've had with the business of Alpacas?Buying high and selling low (more on that answered under question #7 below).
2. Do the youtube videos/online articles paint an unrealistic rosy picture of the Alpaca business?No, I don’t think so. It is a business and it will take work, if you already realize that, you will be fine. If you think you’ll just be able to sit on your porch with a cup of coffee and watch your Alpacas frolic in the pasture and just have to get out your rake to rake the dollars on in, well, that’s pretty unrealistic.
3. We tend to stay home but do Alpacas limit your ability to go on vacation, small over-night trips, etc?No. I have a ranch setup that allows me to put out enough water and hay for two to three full days so I can leave for over-nights with little difficulty. I have livestock guardian dogs (Anatolian Shepherds) that live inside the fence with my Alpacas to keep predators away.
For longer trips, my advice would be to partner up with another Alpaca breeder (or a few) in your area to watch each other’s animals while you will be away. Or you could teach/train a neighbor or other family member about the few important things to pay attention to while looking after your Alpacas.
4. Is this animal a good one for people with limited farming/livestock experience?Absolutely. It’s one of the reasons I got started with Alpacas. They are such easy keepers and not dangerous, we like to say anyone ages 8 to 80 can confidently manage Alpacas.
5. How long have you been raising Alpacas?Purchased my first three breeding females in 2004.
6. Did you have prior farming/livestock experience?None. Before I “retired” in 2007 to run my ranch full time, I used to work in advertising.
7. If you could start over, would you? And if so what would you do differently?Yes, I would start over, I would start three years earlier or three years later. I bought my first Alpacas at the height of the market. By the time their first offspring were of breeding age and ready to sell, the U.S. economy was headed into recession (2007-2008). By the time of recovery, those same Alpacas could have been purchased for roughly half of what I paid. If I had started 3 years earlier, I would have had time to sell some animals for similarly high prices to cover my investment. If I had started 3 years later, I could have purchased ones for lots less.
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***) 8. Can you make a consistent profit with your operation?You really need to have a number of income streams to be successful. I know of very few operations that make a profit doing only one thing, such as Alpaca sales. I have had years when I have sold over $100,000 of Alpacas and I have had years when I have sold far less. So having multiple income streams can help balance out those lean times, when one part of your business might not be performing as well, you have other things going that can cover that deficit and you will be able to stay afloat. Most Alpaca breeders also get started in some aspect of the fiber side.
9. Do you know of operations that have not been successful, and why?Of course. Some 60% of all new small businesses fail within the first three years for one reason or another and the Alpaca business is no different concerning that aspect. There is really no “gotcha” element specific to the Alpaca business that causes failures.
10. Any other information you wish to add? In the Huacaya Alpaca market, when you get started you will need to decide which direction you will specialize in, fiber fineness or fiber color. Don’t try to do both at the beginning. Of course there is more to it, but the gist is fleeces toward the white end of the color spectrum tend to be finer while the darker fleeces and especially the greys tend to be coarser.
When selling fleeces, the finest fibers (20 microns and below) sell for the most while you won’t get much money at all for fleeces over 28 microns. When breeding Alpacas, matching white to light tends to produce white or light offspring. Breeding dark Alpacas can be more difficult, even breeding dark to dark can sometimes result in light fleeced animals. When it comes to selling Alpacas, white and light fleeced ones can be slightly harder to sell, as they are the most common; new buyers tend to be interested in the rarer darker colors and the greys.
When you purchase your first Alpacas, consider boarding them, usually at your purchase location. (Agisting or agistment is the Alpaca industry term we use, it also means boarding.) You will most likely be able to get a good deal on the fees if you keep your animals at the location where you purchased them. This allows you to keep your day job while you start to learn some Alpaca husbandry. Ask if you can do some part-time work on their farm to offset some of the agistment fees.
I think now is a great time to get started with Alpacas. The natural habitat of the cashmere goat in China is in decline due to overgrazing and pollution. This opens a ready-made market for fine North American Alpaca fiber through the 2020’s and 2030’s. High end fashion is beginning to utilize Alpaca fiber more often. And the prices for Alpacas themselves have stabilized. The top 25% in terms of quality, those that require little to no improvement and are producing 5+ pounds of sub 20 micron fiber each year are routinely selling for between $5,000 and $10,000. I do not see very much fluctuation in these prices going forward into the future.
When I first got started, the hardest thing for me was how to value or price an Alpaca. What makes a good one? What makes a bad one? Why is this one $2,000 and that one $12,000? What does a $20,000 Alpaca look like? My advice would be to find someone you trust that knows and can mentor you through the process of buying your first ones. If that isn’t an option (I didn’t have any help getting started either) there are other ways. I studied the auctions. There are at least a half dozen reasonably sized Alpaca auctions around the country each year, look up the prices and try and find ones you like. Then take that info to Alpaca farms in your area and ask if they have something similar for sale. (Auction prices should be 10% to 20% higher due to sales fees, transportation and vet certifications than off-the-farm sale prices.)
Also ask the farms who they use for vet services. When you are ready to buy, you should get a vet who is familiar with Alpacas to do a health and wellness check, just as you would have a mechanic check over a used car before purchase.
Be sure to add Cas Cad Nac Farm in Perkinsville, Vermont to your list of Alpaca farms to visit. The owners, Ian and Jennifer Lutz have been in the Alpaca business since 1994 and are easily one of the top 10 breeders in the country. I actually met Jennifer once at a national show in Utah, they have a really good program. Royal Rose was one of my favorites from their stud row, I almost sent a female to breed to him but the transport was too pricey and would have taken 4 days...
I hope this helps.
Best of luck to you with your new Alpaca endeavor,
Jason Hughes
Alpacas at Alpine Ranch
Elizabeth, Colorado
email: alpineranch (at) yahoo dot com
Please Visit Additional Alpine Ranch blog posts:
Superfine Natural FibersThe Making of a Cornerstone Foundation Female, A 12 Year JourneyTop 10 Reasons to Get Started with Alpacas in ColoradoThe Best Natural FiberAlpacas of Alpine Ranch is the home to 50+ huacayas. Breeding quality Alpacas since 2004, we specialize in Foundation Females, Starter Packages & Stud Services for sale. 27 miles S/E of Denver, 32 miles N/E of Colorado Springs, due east of Castle Rock off Hwy 86, located in Elizabeth, Colorado.