Monday, August 31, 2009

The Importance of Research

OMG! As you know, last week I changed my mind about my ranch name and officially changed it with ARI. Well this weekend I decided even though I'm still in the planning stages, it wouldn't be a bad thing to put my farm name and website link on my signature in the Alpacanation forum. It was a nightmare. Not because putting a link on a signature is difficult, it's actually very easy. The nightmare was getting a new domain name. Apparently there's an Alpaca Springs farm in Canada. Had I known this, I would have stuck with Suri Springs, even though I will have hucayas. Of course had I simply typed the name in the address bar, I would have known that. Sloppy research bit me in the heiney. I did do some research, I checked AOBA, ARI and Alpaca Nation. but had I taken that last step, I could have saved myself some creative thinking. Especially since some wonderful person has parked the name Alpacasprings farm.com. So I have a .net instead of .com. No biggie, but after my misstep I spent the better part of the day. Wrestling with myself so I didn't make the same mistake.

Now this rushing into a name cost me unnecessary money. Because I didn't live with my name before grabbing it from all over the place, and making sure I really liked the name. I had to pay to change the name with ARI and pay for a new domain name. Granted this time rushing only cost me $25 but the next time it could cost way more. Not to mention the time it took to change the name on this blog, and my email address. Thank goodness I hadn't started using email yet. It sounds simple and the actual actions are but I hadn't realized how many places I was already using my farm name.

Anyway my farm name AlpacaSprings is official and isn't going anywhere. Everything is set-up and ready for building and expanding. I can't wait to have the land and I can put that name over the entrance.

Sunday, August 30, 2009

Responsibly Owning Alpacas

I am an animal lover. Most Alpaca owners are. Like in anything, unfortunately there are a few bad apples. Meaning the greedy and irresponsible.

I can't volunteer in an animal shelter because I couldn't look at those sweet faces and know they would be dead the next day sleep simply becasue they don't have a home. Most of these animals are there because they stopped being cute. Or the owners abandoned them for convenience. I read a thread (slaughter house/ livestock auction thread) that lets me know this also happens with alpacas. I've already decided to make a space on my farm for rescue so if a farmer is in a dire situation the animals don't suffer. I won't have enough room to save the entire population, but even saving a small herd is a step in the right direction.

I'm working on my exit strategy so I don't end up as one of those irresponsible owners. ( I acknowledge there are times when life rears its ugly head and things just happen - I'm not talking about that) I worked up an alpaca life expectancy chart. Across the top, I've listed the years and from the year I'll turn 60 I've noted my age above the year. From the year I'll turn 60 through 70, I colored in gray because I'm just not sure I'll want to have an active farm after 60. Down the first column I've listed the animals I already have and the animals I anticipate acquiring/breeding for over the next five years. (I used my business plan for that list) Then I colored in a life expectancy of twenty years for each animal. I used 20 years because the average lifespan of an alpaca is 15 - 20 years. Some may live longer or shorter, but if I plan for long life, then I have no ugly surprises.

From my chart, if I acquire my goal of 6 breeding females, two fiber animals and three herdsires within my first five years and they all have crias that I don't sell, I acquire no more animals after the fifth year and everyone lives 20 years, my Alpacas will all be gone by the time I turn 65.

I realize that I don't have a crystal ball and I can't predict the future but that's not my goal. My goal is to give myself a realistic idea of what I'm committing to. And not be in a position 20 years from now of having a large herd, realizing I want to retire and having one of those herd dispersal sales. I'll probably never be without alpacas, but there is a difference between having a working farm and having a home with pets.

I think if more people thought out how long the animals they are buying/breeding will live, and gave themselves a visual of what that looks like, life would be better for both the alpacas and the humans who own them.

Saturday, August 29, 2009

It's really a business

I am so proud of myself. I am really starting to look at and treat the Alpaca business like that, a business. I've completed the financial part of my business plan and now I'm on to the fun part - the writing.

I am definite about making space for rescue. And I'll agist as well. Since I'll have a large amount of land I've decided to trade a section of it to a vet so I'll have a vet living on premises. I'll accomplish two goals doing this: 1) I'll have an alpaca vet, 2) The area will have an alpaca vet.

I've already created an Alpaca Information Sheet which I'll require anyone buying animals from me to sign. When I create my website, I'll have this and any other form I create available for download. the AIS form contains a clause acknowledging that I will broker the animals for sale if the client finds they are going out of business or unable to care for the animal. They will be required to pay agisting fees which, hopefully, will keep people from using up an animal and dumping it when it becomes older. I'm also going to require that people have a basic education of alapcas before I sell an animal. I don't see why people don't do that now. Correction, yes I do - they are more interested in making money than the animal's welfare.

I hope this downturn in the economy will purge such people from the alpaca industry.

Friday, August 28, 2009

Feeling Good

Every time I turn around, I keep getting more and more positive reinforcement that I have made the right decision gong into the alpaca business. I can't think of another business where most of the people you come across are so nice and generous with their knowledge. After I read that horrifying thread in the AlpacaNation forum about livestock auctions, I made a definite decision to make room on my farm for rescue so that as many of these poor animals as I have space for would have someplace safe until they could find a new home. I was also thinking that I should do like other rescues and have mandatory education for new owners so that the alpacas would go to people who know at least the basics about the animals and their care before taking them home.

From the business classes I've taken, I've learned that the best businesses to study are not the ones that succeed, but the ones that fail. Yes, you look at what works, but you can also learn so much from what doesn't work. Learning from other people's mistakes can save a person a lot of time and wasted energy. To this end, I've gone through the herd disperal ads on AlpacaNation (all 140 of them - yeah 140, very scary) because most people write why they are going out of business. I realize that in today's economy a lot of businesses are struggling and/or closing, but the bad economy isn't the sole reason businesses close. Most new businesses close within one year even in a good economy.

During my research I found a farm that had two herd disperals and it turned out he was doing exactly what I was thinking about doing: providing a safe place for alpacas whose owners have gone out of business. We had a very nice conversation (just shy of an hour) during which he explained the pitfalls of what he was doing and the rewarding side as well. Interestingly enough, he echoed a lot of thoughts I had, including making sure that the animals went to people who knew the basics. After my conversation with him and reading the threads in the forum, I realize that the Alpaca industry is on the cusp of major changes. In order to survive, it's going to have to. Breeding for profit is starting to not work and I have a feeling that those who fail to recognize this are going to be in trouble.

Wednesday, August 26, 2009

Fiber Education

Finding that AlpacaNation forum has been a Godsend. I knew I had a lot to learn, but after reading the fiber threads, I have a more to learn than I thought. A lot.

I truly understand why people want to stick to the breeding side and not deal with the fiber side. There's so much to learn, but it's like with anything. Anytime one starts a new venture there's a lot to learn and thinking about how much you have to learn can be overwhelming. But if I want to have a successful alpaca business that is not dependent on breeding I have to learn it.

Someone else posed the question of having an all fiber herd. Considering what happens to the poor males in this business, I like the support the idea got. I'm still leaning towards the rescue idea and I don't see why I can't to both. I can use the fiber from the rescued animals in my fiber program until I can find a suitable home for them.

This business is exciting with many twists and turns. I feel like I'm really starting to get a handle on what being an alpaca owner means. And what it takes to make it a successful venture. And I do want it to be successful. I guess a lot of my apprehension is that I'm doing it on my own and I don't want to get in over my head.

I'm just going to go slow and continue to develop a wonderful support network.

Tuesday, August 25, 2009

The Ugly Side

I have discovered the ugly side of the alpaca industry. Apparently, there are people who are unable to sell their animals so as a last resort they sell them at livestock auctions. At these auctions, the animals are subjected to neglectful treatment while waiting to be sold. This knowledge really hurts my feelings. I realize that not everyone succeeds in business, but there is a difference between having a store full of merchandise and a live animal.

I will never understand people’s lack of responsibility. I can understand buying a house or a car and finding out a year or two down the line you are unable to afford it. But these are non-living things they can sit without any harm. Ok the car wouldn’t be drivable if it sat too long, but you know what I mean. An animal is a living thing that has to be taken care of for a long time. Why people don’t think is beyond me. Alpacas live for 15 – 20 years. If you can’t feed the animal for 20 years, don’t buy it. Or breed for it. I don’t think the initial problem is the animals originally purchased but the animals that are bred for after the purchase. People are breeding with the assumption that they will be able to sell the cria. What if you can’t sell the cria? You now have another mouth to feed for 20 years.

To me this is another "take it slow" lesson. I find it hilarious that people are being encouraged into this business to increase the number of animals to create a viable fiber market when we can’t provide homes for the animals that already exist here. I also know part of that reason is that people are trying to sell the animals for what they paid for them in an over inflated market and can’t wrap their minds around taking the loss. To me, a 50% loss is better than a 90% percent loss which is what is happening if that at livestock auctions or a 100% loss if the animals are destroyed.

I think that I’m going to create space on my farm for rescue animals. I understand that I can’t save every animal, but I can put forth an effort for those I can.

Monday, August 24, 2009

A New Discovery

Last night I made a interesting discovery. As much as I'm on Alpaca Nation I can't believe I just found it. There's an alpaca forum. I'm so excited. I got my email this morning activating my account. I did read some threads and it's scary how people will jump into something knowing little to nothing about what they are getting into.

I was feeling like I hadn't done enough research before buying my kids but I've discovered that some people do absolutely no research before buying alpacas. I don't understand it. But then people are always buying animals and knowing little to nothing about them. That's why so many dogs and cats end up in the pound. I wish people were more responsible.

I'm going to enjoy this forum. If it's as helpful to me as the relocation forum was, I'll be all set for when it's time to open my farm.

Speaking of which, my farm is officially called Alpaca Springs. I like it alot better. I know I'm focusing on suris, but I do have Sir Ewok, who is a hucaya and I may end up one or two more hucayas and I didn't want to leave them out so instead of Suri Springs, Alpaca Springs.

Sunday, August 23, 2009

The Farming Lifestyle

The more time I spend at the ranch, the less I like LA. It is so peaceful. Why anyone would want to be in the hustle and bustle of the city when they can sit on a quiet patio and relax is beyond me. When I tell people that I drive an hour and a half to Murrieta to visit my kids, they look at me like I've grown a second head. But it's so worth the drive to me to be able to go there, interact with the animals, and just sit in the peace and quiet of nature. I don't even mind the little bit of work that must be done first. The reward of peace is well worth a couple of hours of hard work and long drive.

The hard part is not the drive to the ranch when I have to watch my speed because I can't wait to get there, but actually leaving. It takes me at least two hours to talk myself into leaving. It's the same with my ranch visits. I'm usually there for several hours because I just love being on a ranch so much.

I've always known I wasn't a city girl and growing up in LA was great because LA wasn't a real city then, but it is turning into one which makes me very sad. But it's a good thing because it encourages me to stay focused on my goal of having my own farm. Farming is for people who enjoy nature and desire a quiet life. Alpaca farming is for people who enjoy nature and love animals. That's why I know alpaca farming is definitely for me.

Saturday, August 22, 2009

Hot Visit at the Ranch

Today was a Hot Springs day on the ranch. My cousins came and met my kids which was really fun. Christopher didn't want to go in after Rick cautioned them about standing behind the animals and touching them. Marianne was a lot more adventurous, she even helped belly hose the boys.

Watching the crias play is too entertaining. Who needs TV? I belly hosed the girls in maiden field and it turns my girl is a waterhog. And of course, she had to go rolling in the mud. That's my girl. Mud bath at the spa.

Speaking of spas, I consulted Rick and Patti about changing my farm name and they loved my new name. I really liked it to so, sorry Jo, I think I'll be changing the name afterall. I also talked to Rick and Patti about my wish list. They are supportive of the idea of my buying Carmella and Windy Ana. Things are moving right along.

Friday, August 21, 2009

RIP Little boy

I just received an email from my dear friend that her girl had a still born cria Wednesday. I knew when she didn't return my call something was terribly wrong, but I couldn't imagine anything this terrible. My heart goes out to Susan and Starr.

And just to add insult to injury, she's selling three of her boys today, including her beloved Alpha. I can only imagine how difficult that must be. Poor Susan. I can't even begin to imagine selling Keona's first cria. This is why I really want to be on my own farm when my herd starts to grow.

Dear Susan, my heart goes out to you in this very emotional time. I am so sorry for the loss of your cria and your boys.

Thursday, August 20, 2009

What's in a name?

I thought long and hard about the name of my farm and came up with “Alpaca Sauna”. It’s kind of a play on the word “summer” my favorite season and I also chose it because the place where I plan to have my farm, Hot Springs, Arkansas, feels like a sauna during the summer.
Then I started thinking again and thought maybe I wanted to change the name (ARI only charges $ 5 for a name change). During my conversation with the representative at ARI, I decided not to change the name. She really liked it. I do, too, I just didn’t think people got it. Also, I understand the name is pretty unique, which made me like it more.

Speaking of names, I’ve backtracked on my decision to not put specific animals on my wish list. I have officially decided that I want Lady Carmella (daughter of King Kong) and one of the other white girls that Rick and Patti are selling and I might let fate determine which one but I’ll have my preference.

I’m not backtracking on concentrating on fiber rather than a breeding program, but if I am going to have a breeding program, albeit a small one, and have the opportunity to acquire high end lineage, I don’t see a reason not to.

Wednesday, August 19, 2009

It's nice to have friends

I have had few people in my life who have helped me. Normally when people are nice to me it's because they are getting something out of it. Since my introduction into the alpaca industry, I have been blessed to meet people who like to help people for the sole purpose of helping people.

I can never thank Rick and Patti enough for everything they are doing for me. They allow me to come in and work on the farm so I can learn the day-to-day and they share with me their knowledge. They also help curb my fanciful tendencies. Most people who are selling things love to see someone like me coming. They could have sold me a bunch of animals, and filled my head full of grandiose ideas, encouraged my grandiose ideas and called it a day. But they actually take the time to explain why things will or will not work. They tell me which animals will and will not work for my goals. They share with me their honest evaluations of my kids' potential. A lot of time I feel like I'm taking advantage of them or ripping them off. In my opinion, I am receiving so much more than I am giving. But they disagree.

When I did the math and realized the true value of Keona, I offered them a cria. They flat out said "NO!". And now that I'm realizing the potential in Michael Jackson, I really feel bad. But I know there's no point in my trying to compensate them, they won't hear of it. That's okay, I'll have an Alpaca Nation farm page soon and I'll plug them there. And their farm will always be on the front page of my website. And Rick wonders why someone sent him a ride around cooler. Some of us are very grateful for what you do.

And Susan. My dear friend who introduced me to Rick and Patti and took me to All American Alpacas. Everytime I'm feeling discouraged or have a concern, she listens to me and helps me come up with a solution or feel better. She also introduced me to the ARI registry and showed me how to use it. It's a great research tool. And a fantastic way to do independent research to find out how much of what you read in ads is hype. I was concerned when I read that she stopped farm research when she met Rick and Patti, but I truly understand why.

The people I've met on my farm visits have been very nice as well. Nancy of .925 Sterling Alpacas has been wonderful in sharing her knowledge of fiber and fiber products. And it was fun riding around Windy Hill with Cindy. She breeds for shows and showed me what makes a quality show animal. She also helped reinforce and drill into me that alpacas are a business. I don't think I'll ever 100% hold that view, but then she doesn't either.

And the gentlemen who run All Alpaca Fiber Mill deserve to be mentioned here because I don't know many people who will take your phone calls and have extensive conversation when they know they won't be getting any business from you for at least 7 months.

It's nice to find a place in the world where people are wonderful and share. I'm really liking the alpaca industry.

Tuesday, August 18, 2009

Herd Planning - the colors

The contemplation of my foundation herd continues. I've decided I want a variety of colors for my foundation herd: black, white, fawn, grey and brown. At first I was thinking I wanted one color for each sex but that I've gained some alpaca knowledge, I know that this isn't necessary.

First of all, I'll end up with more alpacas than are needed for a foundation herd. Secondly and most importantly, it doesn't matter what color the parents are, there's no way to guarantee what color the cria will be.

With this thought in mind, as well as knowing I already have dark brown with Keona and Michael, I'm setting my sights on the other colors. Rick and Patti have two very beautiful girls I have my eye on who will nicely take care of white and fawn. There's a potential herdsire from the Aurness herd that I would like for black. I'm thinking I would like a white male and have a white pair even though I know I will probably end up with a color rather than white when they have crias. And since I'll have three males at this point, my grey will be female. The other two females, I'll leave to fate.

Planning is so much fun! I can't wait to get my farm set-up.

Monday, August 17, 2009

My Wish List

This weekend Patti and I went over my wish list. I'm trying not to allow it to get too long, thus I have a self imposed ban on visiting Alpaca Nation. We discussed the animals from Arness's farm as well as my animals of interest from All American. Apparently, Ms Arness is retiring from suris just like Rick and Patti. Her animals are currently agisted at Windy Hill so I probably saw them but because I wasn't there shopping, so they didn't really register. Sounds like another visit to Windy Hill is in order.

We went over Rick and Patti's herd and she basically gave me an education on who's who (I am having a heck of a time telling the white girls apart). We went over the pros and cons of each animal. Patti also let me know that they can take a female if I buy from outside, but no males. They have too many as it is. She also let me know that they buy outside females to mix up their bloodlines. So she understood my concern about being in the position of having animals you can't do anything with because they are all related. If bought the girls I was interested in, some of them would be related but it doesn't really matter with females, the big concern is their crias. If I only had one herdsire, they would all be related and couldn't be bred to each other so they would all have to be sold.

Breeding is a very delicate balance. Another reason it's a good thing to be friends with other alpaca breeders. We can trade breedings.

Sunday, August 16, 2009

Phase 2

Now that I've worked out the expenses portion of my business plan, it's time to move on to the reason for being in this business: the potential income. Key word here is "potential".

Patti started talking to me about fiber yesterday and we'll really get into it next week. One thing she told me which was a bit disturbing is that fiber loses quality over the years. In fact, in Peru, alpacas are eaten after the age of 7 because as far as the Peruvians are concerned, once the fiber is no good the animal has no value except as food. I could never eat one of my babies. But the information got me to thinking: if the fiber loses quality over the years, what do I have left if the quality goes down half way through my angels life time? Now I'm really understanding why people want to focus on breeding rather than fiber. Not only can one make more money with the breeding program, but apparently it's income is more long term as well.

Thank you Susan for being a ray of light. She told me that one of the boys won a blue ribbon for his fiber - at the tender age of 12. So I guess it's a matter of breeding for fiber rather than breeding for shows. So I am going to have to be careful with my breeding and breeding selections regardless of my motivation.

Speaking of my herd, we weighed Michael and Ewok yesterday and at 7 and 6 weeks they both weigh 37 pounds. Big boys. Momma's very happy.

Saturday, August 15, 2009

Halter not training

Well I have to say that I have to own one of the smartest alpacas, at the very least, one of the most creative. My girl has decided that she will allow the harness to be put on her, but she will only walk on her own terms. Today, she stayed in front of me and she kept twisting the leash around her neck. When that wouldn't get the leash out of my hand, she twisted the leash again, then before I could get it from around her neck, she jumped straight up in the air, flipped over on her back catching the leash with her back foot as she went down - effectively snatching the leash out of my hand.

She ran up the alley and I gave chase, when she got to the end, she realized there was a gate and she was stuck. So she gave in on walking on the alley but when we got to where we needed to stand, she wouldn't stand still. She kept going in circles. My girl.

At least Susan's girl had a good day. Creme Brulee walked on the harness like she'd been born to it. She even walked through the garage. However, once back inside of the field she pulled and bucked like she was dying. Beyonce and Bon Aninee were liking harnesss training either. They didn't go for a walk. Beyonce was acting every bit like her namesake. She coped what I call "alpaca-tude".

Michael Jackson and Keona are officially registered to me. And I officially own Sir Ewok outright. Rick and Patti are wonderful people who refuse to let a person waste money or make a bad move. No matter how hard headed I am. :-) They really feel it's unnecessary to register Sir Ewok since he is only a companion animal for Michael Jackson. They showed me the difference between Sir Ewok's fiber and another Hucaya's. That other Hucaya's fiber was much softer than Ewok's. At 6 weeks of age, he should have the best fiber he will ever have. Their point is taken.

I still have high hopes for Michael. I understand that great herdsires are a long shot but Michael is a big boy with a fantastic lineage. If he grandson of Cantano of Peru (sold for record $265,000), and great grandson of Peruvian Meteor doesn't have a chance to be a champion herdsire, I don't know who does. Of course, Blade (Michael's sire) is nothing to sneeze at. He's a big, beautiful boy who does beautiful work. Just look at Michael and Keona.

Friday, August 14, 2009

Babies Everywhere

I visit to the farm this weekend will be especially fun. Both Malea and Percy had their crias. From the pictures Rick posted on http://www.allamericanalpacas.com/, they are beyond cute. This is the problem with alpacas, they're all cute. I can't wait to have a farm.

I finalized my herd plan portion if my business plan. At the end of year 5, if everything goes according to plan, I will have 19 alpacas. That plan involves my starting with Keona, Michael Jackson and Sir Ewok, buying a breeding female and herdsire when we move to the farm. After we get settled in, I will add a breeding female every year until year 5 which will give me my desired 6 breeding females. Michael and Ewok will be old enough to breed by then and hopefully will have grown into herdsires. Michael, being the grandson and great grandson of award winning star herdsires, has an excellent chance of this. As for Ewok, Rick thinks "pet". I'm thinking for a fiber program, he'll be okay.

I realize there are objections to buying animals as fiber animals when one will get them naturally from the breeding process, but I still plan to acquire a pair of fiber animals at the end of the second year. Between my acquistions and my girls having crias, (I plan to sell every other cria) I should have a nice size herd. With six breeding females, and everyone staying healthy, I'll add six crias a year and if I sell at least three, in Arkansas, the girls will be paying for the farm. Of course, the fiber sales will be very helpful in putting me over the top and allow me to build savings.

*deep sigh* Plan complete. Now on to implementation, by the time I'm 50, I'll be able to retire to my farm. YEAH!

Thursday, August 13, 2009

Alpaca Raffle

Creating my farm business plan just got easier. The farm holding the raffle for Chai Tea had it. Unfortunately, I didn't win, but maybe right now that's for the best. The last thing I need to to have another animal to agist before I have my own farm. I am glad I was able to contribute to our troops getting alpaca socks. I've decided that every year I'm going to contribute a fleece to make socks for the trooops.

By my calculations, all things being equal and all of my females have no problems reproducing and do so every year, and I should have 30 alpacas by the end of my 5th year. My plan is to sell at least half of the crias. My plan (finally) is to have 6 breeding females and three herdsires as my foundation herd for my breeding program. I will probably acquire one or two fiber animals per year after the third year which will give me 6 fiber animals. I'd like to have a fiber herd of 12. Before I buy fiber animals, I'll wait and see what my girls produce.

Thirty alpacas is not a small farm but it's not a large operation. I think I'll be able to handle it.

Wednesday, August 12, 2009

The Importance of Lineage

As I am planning my herd and creating my wish list, a lot of ads tote lineage. "Add MacGyver bloodlines to your herd", "This is the offspring of King Kong", "this alpaca has Peruvian bloodlines", etc. And when I research some of thesse bloodlines, I can see that the Alpacas they are touting have impressive offspring numbers. If one is strictly breeding for show ribbons, and some alpaca owners do, I can see where bloodlines are important. I can see where having a "celeb" alpaca in your breeding program can be a good thing. More importantly, a ribbon winning alpaca from a "celeb" bloodline. Such claims greatly increase the alpaca's value (translation raises the price). Since I am planning to do some breeding, I am learning who the big boys are.

I know I will only buy ARI registered animals. Even if they are simply fiber animals. I will register all of my crias, whether they turn out to be show animals or pets. Yes, it costs money to register the animal, and for most people, the registration is about proving lineage, but more importantly, and my point is, that it tells you where the animal came from. Unless the animal is registered, how do you know where it came from? The animal could be stolen for all I know.

Since I am planning a majority fiber program, how important in lineage? I'm thinking that for me or anyone running a fiber program, lineage is not that important. I think that if given the opportunity I would like the acquire the high end bloodline animals, but in the end if all I want is great fiber, how important is lineage?

Tuesday, August 11, 2009

Decisions Decisions

What is making life really easy for me is having such wonderful mentors in this business. Everyone has a different way they approach this business but the goal for all of us is the same: to earn enough money from our animals to make a living.

After carefully considering the various ways to make money in this business, I keep coming back to the fiber end. Rick and Patti suggested that I open a fiber mill. This sounds good, I'll definitely research it. If I do decide to go that route, it won't be for a few years. I'm really concentrating on building my herd. It has been suggested that buying fiber animals will be a waste of money. I can see that point; however, it appears that waiting for alpacas to reproduce to my desired number will take me outside of my 5 year plan.

I was up really late last night working on my plan and my goal is to finish it by the end of the week. Finishing will let me know if I need to buy fiber animals to supplement my goal number. For now, my concentration is on what I need to set-up my farm.

Monday, August 10, 2009

Charting my own course

I'm still learning about the alpaca business and I'll still be learning for years to come. Last night I finished reading my friend's blog about her first steps into alpaca. She's stopped writing her blog because the government has apparently decided to read blogs and social network pages to confirm people's business activities. Yes, I have a problem with "Big Brother" looking over my shoulder, but by the same token, I'm not doing anything wrong, so read on.

Everything I go to a website, or talk to someone I learn something whether it's what to do or what not to do. I am deeply grateful for all of the guidance and information I've received. The biggest problem I have with advice and mentoring is that people have a tendency to want you to do exactly what they suggest or follow their footsteps. Through reading her blog, I've learned that Susan was comfortable stoppingher research when she met Rick and Patti. I can totally understand why. They are wonderful people with tons of experience and share it generously wanting nothing in return except to see the person they are helping succeed.

I am not entirely comfortable with one ranch being my sole source of alpaca experience or information. What I learned in college is to write a successful paper, one had to have more than one source. That's why I've visited several farms and plan to visit more. I want to learn from more than one source so I can chart my own course. I haven't gotten the impression that anyone who has given me advice would stop or be upset if I didn't follow their advice to the letter. But I have had that experience before. I've come to realize that those people who turned their backs when I charted my own course did so out of ego. Their intention was not to help me but to see extensions of themselves or to live their lives vicariously through me.

Rick and Patti are not like that. Neither is Nancy or Cindy, or for that matter Susan. But once bitten, twice shy. I feel funny deciding a different course of action from theirs but I believe I'll receive the support I need regardless. This is what I love about the alpaca industry. It's about support and working together while respecting individual choices. The rest of the world should be like the alpaca industry.

Sunday, August 9, 2009

This Business is Fun

I know that so far I've been talking about the business of alpacas and not the alpacas themselves, so I 've decided to take a page from Susan, the wonderful woman who introduced me to alpacas, and when I visit the farm, write about my visit.

When I go by myself, I go really early to help muck the fields and get a feel of everyday life on a farm so when I do have my farm I won't feel like a fish out of water. Mucking it is not fun but at least it can be done quickly. The main problem is that ten minutes later, it doesn't look like you touched it. Patti and I had great conversation while mucking. Her advice on pricing, "price what the market will bear." That's why she and Rick have such reasonable prices. They know right now the market isn't bearing $20K alpacas very well. It's just like with anything, there are always going to be people who can pay top dollar but how many of them want to buy your product?

When we got to the main field, we saw something Rick and Patti had only seen one time before: a girl slipped her pregnancy. It was extremely gross. We had to keep making her move so that gravity could pull it everything. (double yuck) The former mom-to-be seemed to take it in stride. It was her first pregnancy. Now it has to be determined if this was a fluke of nature because she had a placental abruption or if she can't carry a pregnancy.

It's situations like this that underscore the risk in the alpaca business for breeders. If you've bought a female with the idea that she is going to pay for herself by giving you lots of crias, you're taking a huge risk with an unproven girl. When I went to .925 Suris I met the sweetest alpaca, Hard Days Night. Not only is he sweet but he is gorgeous, I want to breed him to Keona. Anyway, he was his mom's first and last child. She died after giving birth to him because she couldn't hold her uterus and by the time the doctor got there, she bled out. The risk of breeding. The good news is even if she only gave Nancy one cria, she gave them a good one.

Rick went over what I have so far of my spread sheet. He filled in some pricing I didn't have and corrected some pricing I did have. He also advised against buying fiber males. He pointed out that I will have males born who will only be fiber males and they won't cost me a cent. I'll see how my fiber sales work out before I totally shelve the idea. Rick and Patti also told me it would be a good idea to start my own fiber mill. I don't know, sounds like a new research project!

We halter trained Keona for the third time. She wasn't any happier than the last two times, but at least she walked with us. She decided she doesn't like being tickled, so she didn't stayed cushed longer than a second inthe beginning. She refused to walk the way we wanted her to go. When we got to the circuit, she did everythiung beautifully going up hill but down, she decided to stage a power struggle. I swear she understood Rick tell me not to let her get in front of me because the second he said guess where she went? Even with my hand in front of her she just put her nose in my hand and kept going. Then she cushed. We ended the lesson there.

I can't help but laugh. Keona doesn't want to be controlled anymore than any human and she's doing a great job of lettting me know it. Not only do I love Keona dearly but she ahs earned my respect. Now I have to do the same with her.

Saturday, August 8, 2009

Understanding is half the battle

I haven't done my high end shopping yet, but I have done a lot - and I mean a lot - of soul searching. And I realize that regardless of whatever high end shopping I do, if the prices don't make sense, they don't make sense. The shopping will console me that people do spend these ridiculous amounts of money on products, but in the end knowing that people will buy high without knowing why still wouldn't out me in my comfort zone. So I began asking myself why.

The answer came to me in the middle of a phone conversation while I was talking to a potential investor. As I was explaining to him the potential for profit, I gave some rough numbers. Even though I have been working on a business plan, I'm still working on the expenses, I haven't gotten to the profit side yet. As I was explaining it to him, I was explaining the prices of alpacas to myself. Once I did the math, the cost of the alpacas made sense to me:

Alpacas live 15-20 years. Once she reaches breeding age (2), she can have a cria a year until she is 15 or sometimes older. One female can give her owner 13 crias over her lifetime. If a cria sells, for argument sake an average of $3500, this one female has made her owner just over $45,000 over her lifetime. And if she's popping out champions, they sell for higher. Well obviously, if an animal can potentially produce $45,000 or more over her lifetime, she's definitely worth more than I was thinking. And maybe $5 - $10,000 isn't so high afterall.

In the end it's all about perspective. And affordability, of course. But even with this knowledge, one still has to exercise caution because nothing is guaranteed. Anything can happen over the course of those 13 years. But coming to the financial realization does help me feel a lot better about alpaca prices.

Now onto the second half of the battle: end product prices.

*deep sigh* shopaholism + understanding and accepting high end shopping prices. Why doesn't that sound like a marriage made in heaven?

Friday, August 7, 2009

High End Pricing

As I continue my research, I realize that the alpaca industry, the fiber in particular is very high end. While you scratch your head, let me explain. I’ve always known that alpaca was high end, but knowing something and dealing with the reality are two different things. I realize that my natural tendency towards bargain hunting is probably going to alienate me in the alpaca world. I look at the prices and go into shock. I think that the prices are outrageous, but I realize that this is the industry standard and I’m going to have to “get with the program”.

Like I said, we all have our own personal experiences we bring to the table. I have to let go of my own personal crap and let this wonderful thing happen. I know in order for me to be successful in this wonderful business, I can't antagonize the other people in this industry and that means to a certain degree, I'm going to have to get over my high price sticker shock in not only pricing my alpacas but the end items I create from their wonderful fiber. Thankfully, I have mentors who will gladly help me with this.

My sister laughed when I told her my problem. Apparently, she’s been waiting for me to realize that my natural cheapskateness and the alpaca industry were on a collision course. I’ll be taking tours of Macy’s, Bloomingdale’s, Saks, Nordstrom’s and Neiman Marcus. Hopefully that will help. You would think that working for a high end cruise lines for a year would have helped and to a degree it has, but there is a difference quoting someone else’s price and quoting a price you’ve created.

Well, onward and upward.

Thursday, August 6, 2009

From Ideal to Reality

Yes, I was excited before just meeting the animals and wondering about the possibilities, but now that I'm getting a handle on the actual possibilities and not just the ones I imagine, the excitement is building considerably.

I spent the better part of last night reading of alpaca owners blogs like this one and I have found them to be very educational. Everyone has a different point of view and experience and reading those is helpful to me because I'm getting answers to questions I haven't asked yet. And I also realize it could be years before someone reads these and I should try to keep these short. (a lot of reading :-))

This alpaca business can be a pretty wonderful and amazing thing. And as I have read many times, it is not a get rich quick scheme. Which is good, that's not what I'm looking for. I'm looking for sustainable long term income. I believe I have truly stumbled upon what will be perfect for me.

Wednesday, August 5, 2009

Fueling Impatience

Nothing fuels impatience like excitement. I am so excited about the future. My research is going better than I possibly could imagine.

I have determined that it is going to be very possible for me to support myself through my "golden years" with my alpaca farm. And I have definitely decided that I will expand to have a large farm as fast as it supports itself.

The fiber industry is growing and becoming more successful and I believe I have made the right decision to focus on the fiber side of the business rather than the breeding. I have acknowledged before, and I believe it more than ever, that it would be foolish of me to focus on fiber to the exclusion of breeding but I'm thinking I'll have a 75/25 balance. I almost have enough information to complete my business plan, then away I go.

Tuesday, August 4, 2009

Why not a big farm?

After my farm visit and thinking over the whole idea of a large vs. a small farm and it occurred to me that if I’m concentrating on the fiber market I might want to consider having a larger farm after all.

I’ll start of slowly and if things go well, I’ll begin expanding. Especially if I can maintain a positive relationship with my chosen fiber mill which I believe will happen. I don’t see a reason why I can’t have a larger farm since I’ll probably need to if I’m going to focus on fiber production. And with fiber animals being much cheaper than show animals, it won’t be nearly as challenging to reach a profitable status.

I’ll have help as I get larger; anything over 50 I won’t be able to handle on my own. The farm that I visited had a live in veterinarian which I will absolutely do once I get a large number of animals, probably around 150. I guess the biggest challenge I will face is selling the goods that are produced. Looks like I have more research to do. Good thing I like research.

Monday, August 3, 2009

Alpacas: Pets or Business?

Donald Trump says, "Find a job you love and you'll never work a day in your life".

This quote pretty much summarizes why I am so excited about having an alpaca farm. I want to do something fun and that I'll enjoy. I love animals. I always have. Having a farm is so me I can't believe I haven't considered this before. The freedom of being my own boss will be a very welcome latent effect of starting my farm.

I went on another farm visit yesterday (yes I was scared) but it was a very nice farm. It was huge. There are over 400 animals. Again it was pleasantly educational. The farm's owner kept emphasizing the financial end of alpacas and continuously reminded me that they are a business and that by having them, I am going into business. This is the part of the alpaca business that disturbs me. Her focus is on the breeding end of the business and I'll have to say from the number of ribbons she and herherd have won, she's very good at it. She emphasizes the very thought process that have turned me off of the breeding end of this business. Yes it's a business and yes the alpacas are livestock. But I view them as pets and I try to treat them with the same respect I want to be treated with. I can't look at an animal and say because your face is long your not good enough to breed. She is very good at looking at the animals and detemining who was show quality and who wasn't. I would love to learn how to do that. What amazed me was that in spite of how hard core business she was, she was very sweet and very loving with her animals.

She has so many that they all have name tags. And that's great for visitors. When we were discussing animals, we could address them by name rather than "that one". She has several that I liked but her prices are bit a high end for me. I view it like this: in everything cars, homes, clothing, restaurants there are different levels to meet almost everyone's budget and comfort level. She sells high end (Maserati) and my budget and comfort level is economy. The last time I flew I had a bargain seat and had to wait until the first class people got on and off the plane first but at the end of the day, we all took off and landed at the same time. I might be paying economy prices for my herd, but I still have good quality animals.

Being the savvy businesswoman that she is, she realizes that there are going to be more people like me visiting her farm and she's already preparing to divide her herd into two levels so that they are affordable to everyone. I hope that the animals I liked fall into the affordable tier and are still available when I'm ready.

Sunday, August 2, 2009

Alpaca Shopping

I live on AlpacaNation. I have learned so much from that site. I have also learned quite a bit from the websites of various farms. These sites have been such an invaluable source of information for me, I can't wait to get my site set-up so I can share with other people like me.
I'm thinking that this blog is a good starting point, so I'll keep this up even when I get my site up and running.

Now that I've decided how many animals I want and what kind, the new decision is who buy next. Fortunately, I have plenty of time to make this decision. I have decided that I want to buy Red Shogun from Rick and Patti. Especially since they have such a great program that will allow me to buy him without breaking my bank. I'm still on the fence about Malea.

Malea is a great girl and breeding age which is what I want, however, I'm thinking I need to expand my genetic pool and buy from other farms or ranches. Buying Malea does fit into expanding my genetic pool because she isn't related to anyone else at All American. We'll see. I guess a lot will depend on if she's still available when I'm able to make my next purchase. My next acquisition must be a female because Keona has no one to be in her field with. I'll have three boys and I don't really need anymore, but there seems to be an abundance of males available.

I saw one ad that has me very tempted. There's a trick trained alpaca who gives "high twos". Beyond adorable. If I had extra money, I'd snatch up him and his two buddies. (I will need fiber animals) But since I don't right now, I have to be sensible and get a female next.

Of course I'm going to wait until the raffle results to see if I win Chai Tea. That would be great. She comes with a breeding to any male of the farm including Captain Morgan. I think I could add some serious value to my herd by having offspring of Captain Morgan.

Saturday, August 1, 2009

Planning the Herd

I've sat down and thought long and hard about my herd and what I want it to be. I'm taking some cues from the number of herd dispersal sales I'm seeing on Alpaca Nation. I'm definitely going to keep my herd small and grow it slowly. It's very tempting to want to have a large herd but I'm bearing in mind that alpacas are living creatures and have not asked to be born or live on our farms. And I'm remembering they live for 15 - 20 years so I have to be prepared to care for them that entire time.

The most disheartening thing I've seen are listings for animals that are 15 years or older. I don't understand this. If an animal has given you 12+ crias over the course of her lifetime, doesn't she deserve to live out her retirement on your farm? No animal I own will ever not have a home. Even the crias I sell will have a space on my farm.

I have decided that I will have 6 females and two, possibly three, males as my breeding herd. As for my fiber herd, I'll let time dictate how and when I acquire them. I'm planning to have six fiber animals, male or female. I know I know I don't want more than a dozen animals of my own and I plan to agist an additional dozen. And I realize as a write this that I've already put my number above 12 but anyone who knows me won't be surprised. I love animals in general so much that the only surprise will be if I can keep the number down. :-)