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Monday, December 05, 2005

[Alpacasite] Re: Alpaca vs. llama prices - Attn: Susan Gawarecki

Gary Epp wrote:

<<An alpaca that yields 6-8 pounds per year of mid to
low 20 micron fleece is producing a renewable product
worth more than $2000 gross (12-15 sweaters)
annually.>>

This is true, but the alpaca is producing fleece, not
sweaters. I see alpaca fleece selling for $3+/oz to
spinners, which means up to maybe $400 gross per year
from each animal for fleece alone. Then you need to
subtract the cost of shearing ($25) and mill costs for
fiber preparation (about $15/lb or $120 for an entire
8-lb fleece--and some of that is waste). So your net
on that fleece is maybe $250--which might be enough to
cover feed and vet bills for the year. Now, you can
spin the wool and knit that sweater yourself, but you
will then be working for minimum wage or less.

If you know how to get $2000 for a single animal's
fleece per year, do let us in on the secret. I'll buy
more $750 gelded alpacas to make that kind of profit.

The other factor you neglect is that alpaca fleece
coarsens with age and becomes significantly less
desirable for fine fabric, so production years are
limited. Already we're seeing alpacas (predominantly
males) going into rescue situations because they are
not considered breeding quality and their fleece has
gotten coarse, so they are worthless to their owners.

<<The above example uses VERY conservative numbers and
assumptions but clearly establishes a base value for a
reproductively sound maiden in the $10,000 to $20,000
range.>>

Based on actual gross fleece value (as opposed to
gross value of sweaters), I estimate the true value of
a female alpaca at about 1/5 of what you do: $2000 to
$4000. And as far as "improving" the value of a
fleece, I think there is a physical limit to micron
count and fleece weight. Plus, if that is all you are
breeding for, then the other attributes of the animal
(conformation, disposition, reproductive strength) are
compromised; look at dogs, cats, and horses to see
what single-trait selection can do to a breed.

In truth, female llamas are selling for $10,000 to
$20,000 because of "tulip mania" (Google it if you are
not familiar). Particularly if the US economy starts
to slide, and people can less afford the luxury of a
hobby farm, prices will fall to levels more in line
with what actual value a female alpaca can produce by
producing fiber and more fiber animals, instead of
prices based on speculation.

By the way, how can you determine if a maiden is
"reproductively sound"? Do you sell a female alpaca
with a guarantee that you will buy her back (for
$10,00 to $20,000) if she can't conceive, can't hold a
pregnancy, can't produce enough milk, or throws a cria
with a birth defect? I would hope that most reputable
breeders would extend such a guarantee for those
prices, but I do read a lot of questions about females
with reproductive problems.

I'm not trying to create angst in alpaca owners, but I
do think the industry is operating on unrealistic
expectations. The llama industry has "been there,
done that."

Susan Gawarecki
Pathfinder Farm
Andersonville, TN


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