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Wednesday, February 13, 2008

Re: Fwd: [AlpacaTalk]New subject....Current alpaca sales


>
> > From: CPHalpacas@...
> > Date: February 13, 2008 5:48:05 PM PST
> > To: alpacatalk@...
> > Subject: Re: [AlpacaTalk]New subject....Current alpaca sales
> >
> >
> > Having a great loss at an auction late last year and watching the
> > Florida auction on computer and hearing that 11 of the 36 were a
> > no sale, what do the old time breeders see as going on now????? 
Are
> > auctions in other parts of the country just as poor? ( I'm in the
> > SE.)  Is this probably short lived?  Have you seen this kind
of trend
> > before????   I am fairly disgusted at this point and I would like
to
> > hear what some of you older,
> > bigger breeders think.  (not older in age--in longevity in the
> > business)

Same thing happened after the dot com crash. Assets lost value and
people retrenched.

I suspect that a lot of alpaca purchases were being facilitated with
home refinancing. So now we are experiencing a shortage of capital
to invest in these critters along with any number of people being
forced to make quick sales. That creates the perfect environment to
drive prices down - just as is happening in real estate.

The question then becomes if lower prices will become the norm, or if
they will rebound with a recovering economy.

I am not particularly worried. While I wish folks would not try to
compete on price point alone, I have to admit that even getting $5k
for a good quality dam is still good money for farming.

Of course, lower prices will, at some point, have to effect stud
fees. Hard to demand more for a stud fee than even a female might
sell for.

John Merrell
Gateway Farm Alpacas
http://www.gatewayalpacas.com
Alpaca, a natural elgance...

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