Not to Pick The Most Handsome Male Stud

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Don’t Judge A Book By It’s Cover When It Comes to Choosing A Herdsire.

It pays to look past the flash of good looks and ribbons and look at the science behind the male you are considering breeding to your female alpacas. Look at his offspring, his histograms, his skin biopsies, production records, etc. The “look” of a pretty face can set you back years behind the competition if you aren’t careful.

For more specifics read How Do You Know Which Sire To Hire by Alpaca Farmgirl Katy Spears

Have you ever visited our Farm Business page? There’s lots of stuff to read there, including our Secrets that Sell Alpacas series.

Also on Alpaca Farmgirl Business:

• Paca Blues – Blue Jeans Made from Alpaca
• Stay Motivated in a Down Economy
• 3 Qualities Successful Breeders Share
• Determining Secondary Color in Your Alpacas
• 3 Truths for Small Business Owners
• Essential Resources for the New Breeder

and More… Check it out!

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Within the last month, alpacas have been featured in the Wall Street Journal, on MSNBC, and in local media. These reporters are saying that alpacas are a sound investment, in part due to compounding. Investopedia describes compounding as the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. Alpacas reproduce most every year, with 1/2 of their cria being female. If one retains the female cria, those females will then produce offspring. This is considered “alpaca compounding”. Basically, your investment grows as your females have babies.

Why is investing in alpacas sound? First, they are insurable for full mortality and theft. So if your “investment” goes south (gets sick and dies), you don’t lose your investment. Second, prices on alpacas have remained steady for over twenty years, since alpacas first came into the U.S. in 1984. In October, one of the largest alpaca farms in the U.S., Magical Farms, held their annual auction. It was on a Saturday after one of the worst days the stock market has ever had. It was thought that if prices in the alpaca world were going to tank, this would be the time for them to do it. Interestingly, they did NOT. Yes, prices were down from last year. This reflects the economy as a whole. But prices still averaged around $24,000 per alpaca. See the results.

Even if prices were to drop, with alpaca compounding your investment is still growing.  Here’s a WORST case scenario from a potential price drop perspective: Let’s say you spent $20K on a female alpaca. Prices drop and she’s now worth $15K. She has a female cria that is worth $10K (in worst case lower priced scenario). Within a year, your investment of $20K has turned into $30K. And it’s insured.  Nice return.

Many alpaca industry experts predict that price dropping has hit a low, and now is a good time to take advantage of the lower prices and buy. Financial experts are advising alpaca breeders to hold their stock and not to sell at lower prices. And don’t forget those tax advantages for 2008.

1. Luxurious Fiber
2. They look like big teddy bears
3. Once pregnant, the girls spit at the boys (helpful and humorous)
4. No need to bathe them – EVER
5. Great fertilizer
6. Over 95% of the time they birth unassisted
7. They potty in a community poop pile
8. Tax advantages
9. Those big, beautiful eyes
10. They hum