Re: [AlpacaTalk] Re: [Alpaca meat
Ah, Richard - but here in CA/USA we can write off at least part of all of
the alpaca's purchase price on our taxes - so its either pay the money to the
government at the end of the year, or buy alpacas and let them produce for us,
still a pretty good investment if you ask me.
SUSAN OLSON
Alpaca Loco
Riverside, CA
============
In a message dated 11/4/2008 12:28:03 P.M. Pacific Standard Time,
humhojl120@hotmail.
--- In _AlpacaTalk@
LunarStruck@
> That said, we got into raising alpacas 4 years ago with the
understanding
> that their purchase price would go down to around $1-3K per animal
within the
> next 5-10 years. That was fine with us and we purchased our
alpacas
> accordingly. It happens with every imported animal. To think
their prices will stay
> this high is not good business sense and we need to adjust our
business to
> suit the market. Even at $1-2K per animal, that is still a very
good sale
> price considering the amount of feed they consume. The fleece is
just a bonus at
> this point. I for one am still convinced this is a very good
business to
> get into and alpacas are still one of the most rewarding animals
to care for.
> SUSAN OLSON
> Alpaca Loco
> Riverside, CA
Susan you are commendably honest and realistic, compared to other
breeders who still advertise that alpaca prices will remain stable
due to high demand – despite the fact that prices are already falling.
Or compared to the typical advertised breeder's graph that shows by
starting with 2 pregnant female alpacas now, you can have a herd
worth $1m by the end of year 10!
One site even boasts that "alpacas represent the primary source of
income for millions of South Americans" whilst failing to mention
that these small producers mainly live in extreme poverty on
something like $345 to $800 per year – the asking price for a single
gelding in the US or UK.
However rewarding alpacas are to care for, I can't share your
conviction that this is still a very good business to get into now.
In the absence of a viable end product (and even for meat they are
only talking of $100/head in Australia) the only justification for
paying $0000s for a breeding female was the prospect that you could
in turn sell similar progeny in a few years for on-breeding, at a
similar price, for someone else to do the same thing, down the line –
a classic speculative bubble.
Once the prospective speculative buyer reckons that prices are likely
to fall, the incentive to buy-to-breed begins to fall away, and
prices start to spiral further downwards in self-fulfilment. OK for
those who are only concerned with the lifestyle/hobby/ tax break
aspects, but not for anyone contemplating starting up, now, to make
a living from alpacas.
Richard
Maidstone Kent UK
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posted by Chaddo at 10:18 PM
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