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Alpacas...Have You 'Herd'?
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By: By LOCKIE GARY, Hardee County Extension Director
Link : www.farmerandrancher.com/alpacas.htm
Copyright : Farmer & Rancher, 2006
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Many "urbanites" are moving to Florida each day, with developers changing over 200,000 acres of farm land per year as our state's human population growth explodes. In farm rich Southwest Florida, our county extension offices are inundated with calls from folks wanting to get away from the city life by buying or thinking of buying "small acreage" properties ranging from a few acres to a hundred or so acres. The question they ask, "Is there some profitable ‘small farm' business that I can enjoy on this amount of acreage? The answer is a resounding, "Yes!" Among the successful small farm alternatives cropping up in Florida is alpaca breeding. Currently, there are more than 40 existing alpaca farms throughout the state. This may seem like a small number, however, when you consider that only a few years ago (2001) there were only 4 alpaca farms you will get an idea of the growth that is occurring in this industry. So, what exactly is an alpaca? Once cherished by the ancient Inca royalty of the high South American mountains, alpacas have been called "the huggable investment." Terms such as cute, soft, cuddly, friendly, warm, lovable and profitable are what long term breeders say about these fabulous animals. There are two different types of alpacas, the suri, pronounced (sir-ee) and the huacaya, pronounced (wa-ki-ya). Suri fiber grows quite long and forms silky, pencil-like locks. Huacaya fiber is shorter, dense, and crimpy (wavy), giving it a very woolly appearance. An average alpaca weighs between 100 and 200 pounds and has a lifespan of around 20 years. Alpacas are gentle, easy to handle and can be pastured at five to 10 per acre. Female alpacas start breeding at 18-24 months, typically produce one baby known as a cria (cree-ah) per year and may breed for twelve to sixteen years. The average breeding female (dam) sells for $25,000 to $35,000 or more with some alpacas selling for hundreds of thousands of dollars. Herdsire "stud fees" range from $1,500 to as much as $10,000 a breeding. Recently, half-interest in one of the countries finest herdsires sold for $750,000. Alpaca fiber is among the world's finest fibers. It is soft as cashmere, warmer, lighter and stronger than wool, non-allergenic and comes in 22 natural colors. Each animal produces about ten pounds of this extraordinarily soft fleece per year. This fleece is usually "harvested" by shearing around the end of March (in Florida herds), helping the animals stay cooler through our hot summers. Once shorn, alpaca fiber can be processed into a wide array of finished products ranging from socks to high end formal attire. With the current knitting and weaving craze taking place nationally, the high demand for alpaca fiber is increasing. There are significant tax advantages to becoming an alpaca owner. "Uncle Sam" can help alpaca owners and breeders by providing tremendous tax benefits. If you decide to become an alpaca owner and purchase animals by mid-September (allow at least 90 days before the end of the year to qualify), it is possible to have tax deductions exceeding $100,000. This is true for at least 2006 and 2007, and has been true for the past four years. Many alpaca breeders are using these tax advantages to their benefit by building their herds as fast as possible. Currently, there are approximately 70,000 alpaca in the United States. Our government needs a national herd of a million alpaca to meet the growing demand for this exquisite natural fiber. If you take into consideration that all importation of alpacas was stopped in 1998 and the length of gestation is 11.5 months, you can see that the industry is destined to be strong and profitable for many years to come. So, "how much land do I need to start an alpaca farm or ranch?"; "Are there support organizations and groups that will help me get the ball rolling?"; "What are the financial requirements?"; "Are alpaca environmentally friendly?"; "What about diseases and other health concerns?"; "Can I own and breed alpaca without leaving the city?"; "How do I know what to buy?"; "Are alpacas insurable?". To find out the answer to these questions and more you may contact the Hardee County Extension Service at 863-773-2164 or Southeast Alpaca Brokerage Services at 1-866-982-2797.
FABA Announces Phenomenal Growth
The number of member farms of FABA, otherwise known as the Florida Alpaca Breeders Association, has grown to 56 members and still climbing! The rapid growth of Alpaca owners and breeders in Florida parallels the increasing interest in what is know as "The world's finest livestock business". FABA is an affiliate of the Alpaca Owners and Breeders Association (AOBA), which was formed in 1988 and granted non-profit status in June of 1991. When the AOBA was formed the nationwide number of membership farms was 87 with an Alpaca census of 387. Since 1991 that number has grown to over 4,000 members and 55,000 registered Alpacas as of December 2004. Alpacas produce one of the world's finest natural fibers in more colors than occurs with any other animal. The alpacas fleece is as soft as cashmere and warmer than wool. For thousands of years, alpacas played a central role for people living in the Andean plateaus and mountains of South America. Alpacas are quiet, intelligent, easy to handle and disease resistant. The average height at the withers is 36"; average weight is 150 pounds. Alpaca farms in Florida span the state from Holt, Tallahassee, Ocala, Orlando, Live Oak, Naples, St Petersburg. You can locate a nearby farm by logging on to www.flalpacas.com and click on 'membership directory.'
Alpaca Values
An alpaca rancher with a small herd on small acreage can expect to harvest his animal's fleece and sell their offspring profitably. The value of alpaca fleece and finished products made from that fleece is the economic underpinning of the future market for alpacas. Domestic fiber is often sold to cottage industries that produce hand spinning and weaving. In addition, a number of regional mini-mills have sprung up that have created a steady market for yarn and finished garments. The alpaca industry is generally based on the sale of quality breeding stock, which commands premium prices. The females produce one baby (Cria) per year during a reproductive life of 12 to 14 years. The range of values for females has remained fairly consistent during the 20 plus years that alpacas have been available in North America: generally between $12,000 to $25,000. Females with unique attributes have been known to sell for $50,000 or more. Proven top-quality herd sires (top notch breeding males) sell for $20,000 to $50,000. Unique top quality males with exceptional offspring will sell in excess of $150,000. Alpacas are also fully insurable against and theft and mortality. Insurance can be purchased for your stock regardless of age. Average insurance rates are 3.25% of the value of the animal, or $325 for every $10,000 of insurance.
Creating a Herd
First, determine your goals for alpaca ownership. Would you like to own an inexpensive pair of gelding males for fiber production or as pets for you and your family? Are you going to be a full-time or part time breeder? Will you invest in alpacas for current financial returns or are you going to build a herd to become a full time breeder? Once you have decided on your goal, the path to alpaca ownership will be more easily defined. If you're interested in acquiring a producing alpaca herd with immediate sales, you may want to consider a larger initial investment. This larger expenditure might also encourage you to be more involved in the industry and spend more time marketing your herd. However, you choose to be involved, there is an Alpaca approach suitable for you. The industry is young and innovative strategies abound. Today's smaller breeder can choose to be almost any size in the future.
Alpaca Supply and Demand
The market for alpacas has been moderated by the relative slow herd growth of registered (ARI) US alpacas. The last importation of Alpacas occurred in 1998 and the total registration accounts for less than 55,000 as of December 2004. Supply will continue to be limited in the near future for a number of reasons: - Alpacas reproduce slowly. A female generally breeds for the first time at 18 months of age, is pregnant for 11 to 12 months, and almost always has one cria per year. - Many breeders retain their offspring to build their herds. - The US alpaca registry is closed to further importation to protect our national herd, which will further moderate US herd growth. Meanwhile, demand for alpacas has increased dramatically every year since their introduction outside of South America (1984). - Alpacas offer an outstanding choice of livestock ownership. They have long been known as the aristocrat of all ranch animals. Most of all, Alpacas have a charismatic manner, they do very well on small acreage, and they produce a luxury product which is in high demand.
FABA
To learn more Alpaca ownership and discover why the alpaca industry is growing so rapidly in Florida log onto www.flalpacas.com and contact a Florida breeder. It has never been a better time to invest in "The world's finest Livestock business."
Farmer & Rancher 7334 Delainey Ct. Sarasota, FL 34240 phone: 877-956-4098 www.farmerandrancher.com
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Alpacas in Florida
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