Winter - Classical MileEnd Alpacas

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Lifestyle, Investment or Business ? Why Alpacas ? There are a myriad of reasons for people to become involved with alpacas. Are you currently considering entering the alpaca industry? Are you an alpaca breeder evaluating your position within the industry? What initially attracted you to alpacas? Some people are simply fascinated and attracted to alpacas because they are so unique. Others turn to alpacas as the environmentally friendly livestock. Some are drawn to alpacas by the possible financial gains. Owning alpacas meets the needs and desires of a vast range of people in a wide variety of circumstances. Although the reasons people become involved in alpacas may be quite diverse Steve Marshall believes there are three main foundation categories namely lifestyle, investment and business. 38 Alpaca World Magazine Winter 2007 / 08
Alpacas for lifestyle Perhaps the most common reason people become involved with alpacas is because they are such enchanting animals. The idyllic situation of a small herd of alpacas gently grazing hillsides providing a picturesque view from the front verandah is attractive. It could be just a few wethers to mow the paddock and showing a beautiful range of natural colours. Or possibly a small herd of breeding females and the excitement of a new born cria every few months. The endearing and intelligent nature of alpacas draws some people while others are attracted to the luxurious fine fleece. Alpacas are possibly the most environmentally friendly livestock, with soft padded feet and don't need mulesing or crutching. Not susceptible to foot rot and flystrike alpacas are a common choice for busy people seeking relatively maintenance free livestock. Gentle on fences, the ability to be halter trained and even kept as pets, it is understandable why alpacas are so popular. However, to purchase alpacas simply as an investment, put them in a paddock to breed and expect a financial return is a huge risk. This approach is ultimately likely to lead to disillusioned alpaca breeders that have failed to achieve their goal. Who is responsible for tracking market trends? Who is making wise management and marketing decisions? Keeping in touch with industry directions and making good decisions about management is vital for success and requires some effort. On the other hand one could successfully invest in alpacas if they were managed by an experienced alpaca breeder with good management techniques and a sound business plan. Alpacas may be owned outright or in a syndicate and agisted with a reputable breeder. In this situation the investor may choose to relinquish control over livestock management decisions and is charged for the services of the expert alpaca breeder. For an owner of just a few alpacas this approach may be more cost effective, taking advantage of the expertise, marketing and reputation of an established, experienced breeder. "There are a growing number of people involved in alpacas running highly successful and profitable businesses. There is now a world wide community of successful alpaca businesses trading not only within their own country but also internationally." Alpacas for Investment Possibly the poorest reason to become involved in alpacas is as an investment. Stocks and shares, gold, antiques and fine artwork may be reasonable investments as they involve no maintenance and little business expertise. It is quite common for someone to invest in an object of value and perhaps rarity and expect that one day it will be worth more than the initial cost. An investment shouldn't require constant attention or work to increase its value. Although, real estate, gold or shares, may provide good financial returns some investors are attracted to alpacas because they want to be part of an exciting, growing industry. There is also the enjoyment of touching and seeing your investment (the alpacas) grow and breed. Alpacas for business There are a growing number of people involved in alpacas running highly successful and profitable businesses. There is now a world wide community of successful alpaca businesses trading not only within their own country but also internationally. A business differs from a simple investment in that it requires a plan and constant attention to be successful. However, satisfaction that comes from a successful alpaca business is both financially and personally rewarding. The key ingredients to owning and operating a successful business are common across a wide range of businesses. To own and run an alpaca business requires; ■ Research market opportunities and sustainability – Alpacas have been run in Australia since 1988 and although their value, in general has declined slowly over a long period the industry is well established and sustainable. In fact the lower average price has made it possible for more people to become involved in the industry which is growing. Although the average price per alpaca is considerably less than in 1988, individual elite alpacas are commanding record prices. ■ Research stock quality – Depending on the goals and objectives of the business the type, number and quality of initial alpacas purchased may be quite different in various business situations. Embryo transfer technology has enabled owners of very low quality females to access and purchase top quality genetics in the form of embryos. Initial stock quality and quantity to some extent determines a breeder's role in the industry. ■ Development of a business plan with projected costs and income – There are numerous courses and opportunities available to learn about business management. If the intent is to make money, the farm must be run in a business fashion with management of a budget that is realistic and achievable. ■ Development of a breeding plan – Understand your market and construct a plan to breed alpacas that are sought after. Knowing how to recognize and breed top quality alpacas is critical to gain recognition and therefore reputation within the industry. Market trend may change over time. However, a good breeding plan should be flexible to a certain degree, but also adaptable and stable enough to cope with changes without starting at the beginning with each new idea. ■ Development of a marketing strategy or plan – Perhaps identify a niche market that suits your position. Maybe a particular colour or type of alpaca that assists you in standing out from the crowd. Often marketing includes attending and competing in shows. It certainly involves some sort of advertising to your target market. The development of a marketing plan goes hand in hand with a business plan. There is no financial gain to be made breeding the world's best alpacas if no one knows about them. ■ The desire to succeed – There is no doubt about the fact that to be successful in business requires some risks, a lot of effort and plenty of hard work. There are often hiccups and obstacles along the way that require research, perseverance and determination to work through and achieve success. Alpaca World Magazine Winter 2007 / 08 39
Page 1 and 2: Alpaca World Magazine Winter 2007 /
Page 3 and 4: Welcome to Alpaca World Magazine Cl
Page 5 and 6: www.alpaca-uk.co.uk CME Tulaco Cent
Page 7 and 8: Newbury Racecourse Berkshire 16 th
Page 9 and 10: ng and l Birthing & Cria Care a gui
Page 13 and 14: FIG. 1 C-banding pattern of alpaca
Page 15 and 16: Special Feature Genomic Era guanaco
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Page 19 and 20: Bowford Farm, Goose Green Thakeham,
Page 21 and 22: Banksia Park Alpacas Jenny and Dr G
Page 23 and 24: Maremmano-Abruzzi dog or Cane da Pa
Page 25 and 26: Unless you can move sideways and ke
Page 27 and 28: Distant Echoes European links with
Page 29 and 30: Feature Distant Echoes Left: Chief
Page 33 and 34: chains - one 'heavy' and one 'light
Page 35 and 36: Advertsing Feature BCF Technology P
Page 37: Hanley Hall alpacas UK Alpaca Fully
Page 42 and 43: 42 Alpaca World Magazine Winter 200
Page 44 and 45: … not likely, says the Royal Vete
Page 46 and 47: Health and Welfare Winter Worries ?
Page 48 and 49: THE ALPACA TRAINING CENTRE THE COMP
Page 50 and 51: Moving on Nigel and Ginny Cobb brin
Page 52 and 53: Foreign Correspondence Seeing Red A
Page 54 and 55: South America's other famous export
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Page 60 and 61: www.hanleyhallal 752490 www.lama1.
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Page 64 and 65: Crias and crisis in Salento ! Hilar
Page 66 and 67: 66 Alpaca World Magazine Winter 200
Page 68 and 69: Andrew Spillane shows how an expens
Page 70 and 71: alpaca feeds • contain cereals fo
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Winter - Classical MileEnd Alpacas

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