| Let’s admit it…the past couple of years have been tough for our industry. It’s true that taking the ‘ostriche’ approach to the difficulties we face isn’t useful. Yes, we are completely aware that alpaca markets have been negatively impacted by the recession. Every week we hear about breeders that are forced to sell their herd, or their entire farm, and some of our best customers have been hit with loss of home equity, loss of retirement savings and investments, and uncertainty. Sales are down, prices are down, and breeders are worried.
While it doesn’t do anything to help our situation, we need to understand that we are not the only industry that is feeling the effects of the recession. Alpacas are not the problem. The problem is the economy – banks failing, loans drying up, foreclosures and short sales, companies laying off workers, falling investment values. With all the bad news, sometimes it’s easy to lose sight of what makes this industry worth the effort of hanging on until better times.
So here’s our list of the top ten reasons why we still believe in the future of the alpaca industry. Let’s count down (or up, depending on your point of view!) from #10 to our #1 reason that alpacas represent an excellent business opportunity.
#10. World-wide Industry – Let’s not forget that an alpaca industry already exists. Alpaca fiber is known and in demand around the globe. We are not working in a vacuum here in the U.S., and we have possible partners in many other countries. We also have partnering opportunities with other natural fiber industries. Working together, we can make it through the tough times. Locally, we’re greatly encouraged by the positive response of the sheep producers in our area to the idea of jointly promoting natural animal fibers. Nationally, there is strength in numbers. Internationally, alpaca fiber is known, loved, and highly desired. The market for what we do is much larger than we realize.
#9. Consumers Know and Love Alpacas – Some of us remember when our biggest challenge was that no one we spoke with knew what an alpaca was or why they wanted one. Try selling something no on has heard of! Our industry has done an amazing job of introducing U.S. consumers to alpacas, and it’s a true success story. Alpacas and alpaca products are much easier to market now that people know and love them. Even here in the ‘wilds’ of central Montana, residents flock to see the alpacas and can’t wait to shop in our alpaca store, a direct result of the industry’s marketing programs.
#8. U.S. Alpaca Product R&D is Up and Running - Just a few years ago, the only alpaca products we could get were imported from South America. And while we have nothing against that, we are excited by the recent announcements of U.S. product development. In addition to national programs, more and more individual breeders are investing in fiber R&D. Suddenly there are many more opportunities for our fiber, whether it is for socks, blankets, rugs, or yarns. Our industry is full of brilliant entreprenneurs who continue to experiment, right through the recession. Think about where that puts our industry as consumer confidence begins to return and the demand for U.S.-made alpaca items begins to grow.
#7. Finally, Alpacas are Livestock – When we started raising alpacas in 1996, hardly anyone used their fiber and the industry seemed mainly focused on providing tax write offs, rather than creating a true agricultural venture. But look at us now! Through the efforts of many, alpacas are federally-recognized as livestock, and our industry is making the transition from high-end fuzzy pets or tax deductions, to producing the best quality animals and fiber that we can. With EPDs, fiber testing, and other measures, we’re bringing the state of the art tools to the breeding game. That means we will soon be producing the best fiber, to satisfy the world’s demand. Go U.S. alpaca breeders!
#6. Alpacas Come With Ag Benefits – Yes, we could get all the benefits of being in agricultural by raising goats or cattle. But hey! How cool is it that a side effect of falling in love with alpacas is this: we get to live in the country, deduct our legitimate agricultural expenses, use depreciation and other tools to offset other income, and lower our property taxes through ag classification on our land? All this, and we don’t have to kill anything, milk anything, get kicked or run over by big animals, and yard clean up is easy. Woo hoo! Sign me up!
#5. Alpaca Industry Organizations are Working for Us – Whether it’s national marketing, industry publications, educational programs, or developing tools for breeders such as EPDs, our industry organizations are working hard on our behalf. I don’t know about you, but not many of my former career paths included such dedicated teams of individuals volunteering their energy to provide help for my business. Ok, you are going to say that sometimes they make decisions we don’t agree with. Well, sure. Name someone with whom you agree 100% of the time! Agreeing isn’t the point…the point is, these people are working hard to make sure our industry succeeds, and we reap the benefits, whether it is national marketing, creating brochures or other materials to provide to your clients, offering shows for us to attend, providing continuing education, giving us fiber product opportunities, or…the list is really long! We’ve got a good support system, altho we sometimes fail to take best advantage of all that is available.
#4. We Have a Small Farm Business with Big Returns – We dare you — name another livestock business in which you can make enough to cover expenses with just a handful of animals. Name another livestock business where you can make a profit with less than 20 animals. Can you do this with alpacas? Absolutely. Our farm is living proof. If we wanted to invest in, say, a cattle ranch, we would need thousands of acres of pasture and hayfields, massive barns, chutes and corrals, and big equipment. In order to be profitable, we would need hundreds of cattle. Want to take a guess at how much all that would cost to get into? Because few alpaca breeders have any livestock experience, we sometimes lose sight of just how unusual our situation is. We can have a small group of very clean, cute, amusing critters, cover our expenses or make a small profit with a relatively tiny up-front investment, and we can even take time off for a little travel, see the grandkids, or go to a show. Ask your local cattle producer how his world works, and you will quickly realize how lucky we have it.
#3. We Raise Rare Livestock with Inherent Value – If you’ve been in the industry for a while, you may think that the lower prices we have seen in the past couple of years are a result of having too many alpacas. Yes, the U.S. alpaca herd has grown – according to ARI’s figures, there are over 170,000 registered alpacas. But let’s put that in perspective…according to the NASS, which collects ag statistics for the U.S.D.A., there are over 6 million sheep in this country. There are close to 4000 members of AOBA, compared with over 64,000 sheep producers. Have we still got room for expansion in the alpaca world? You bet! We don’t have anywhere near enough alpacas to statisfy even a small portion of the consumer demand for our fiber products – we need minimally 500,000 and probably closer to 1 million alpacas to do that. Because of alpacas’ long gestation, the rate of herd growth is slow. So the bottom line is: as long as there is a demand for alpaca fiber, there will be a demand for more alpacas to produce it. As long as demand exceeds supply, alpaca prices will remain strong. The past two years are not a reflection of the value of an alpaca, they are a reflection of the economy. Don’t give up just as a tiny light is beginning to shine at the end of the recession tunnel – prices will stabilize as the economy improves.
#2. Alpacas are Naturally Green - Did you know that alpacas come in more natural colors than any other fiber animal? That their fiber does not require harsh chemicals during scouring because there is no greasy lanolin to remove? That their hardy constitution means treatment with antibiotics and anti-parasitic products is kept to a minimum? That they do not require energy-expensive milled feeds, or water-intensive alfalfa to be healthy? That they can be kept on small-sized plots of land, leaving other land in a natural state or available for some other agricultural venture? I can’t think of many other farm animals that are so naturally “green”. And guess what? The impact of more costly oil, “buy local” movements, and consumer concerns about how things are grown, harvested and created is creating rapid growth in “green” consumerism. Depending on which survey you believe, between 30 and 75% of U.S. consumers now buy “green.” Our alpaca industry is poised to catch the wave.
#1. Alpacas and Their People are Wonderful! In November of every year we mark another anniversary with alpacas. This month marks the beginning of our 15th year raising these extraordinary animals. Looking back over the past decade and a half, do you know what stands out the most? It’s all the wonderful people we have met, all the friends we have made, and all the exciting, endearing, amusing, experiences we have had because of the alpacas. I can’t think of many decisions in my life that have provided so many positive returns. Some of the best people we know are friends we met because of the alpacas. Some of the best times we’ve had are alpaca-related. We belong to more than just a tiny little fiber livestock industry - we’re part of an amazing network of coast-to-coast friends and supporters.
So to all our friends and all our supporters, and anyone that loves alpacas, we offer this motto:
When the going gets tough, the tough get alpacas!
That’s our story and we are sticking with it. Yes, our industry is facing some challenges right now, but name an industry that isn’t? Economic downturns always end eventually, and once we work through the rest of this one, we expect rapid growth in the U.S. alpaca world. We plan to soar with it, and we hope you’ll be along for the ride, too. Life didn’t give us lemonade, it gave us alpacas. So let’s get out there and squeeze some!
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| Baby Carlton 2010 |
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