Winter - Classical MileEnd Alpacas

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