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How The Current Recession Will Benefit the Alpaca Industry

Ruminations by Stargazer Ranch

Alpacas entered our lives about 12 years ago. We were looking for a rural lifestyle and started researching these unique animals that nobody seemed to know anything about.  What we learned about alpacas (and livestock industries in general) may provide some insight and understanding about how the ups and downs of the economy help shape the industry in North America. Understanding and learning from the past is essential for planning the future.

The current alpaca industry is a result of a “New World” camelid which was domesticated over 4,000 years ago. During that time, alpacas have encountered every known catastrophe known to man … war, slaughter, disease, ignorance, neglect, greed and more. The alpaca industry has survived and continued through it all. It has reached new levels under the thoughtful and caring practices in Australia and North America.

We have witnessed numerous economic swings since starting our alpaca business. With each economic downturn, the marketplace becomes more educated and focused on the physical and genetic factors that make an alpaca more beneficial to the industry. With each economic up-turn, animals and breeding programs at the leading edge of the industry emerge with increased demand and value. It was in the late 1990’s that alpacas breached the $100,000 barrier. Then a few years later we experienced the 2002-3 “near recession” and 9/11. It wasn’t long before individual elite males fetched $300,000 and $400,000 with the highest reported sale achieving $750,000! These values have been around for decades in other livestock industries and are only new to the “elite” alpaca breeders market. In all livestock breeding markets, the “best” refers to the predictable superior quality of the offspring produced.  Recent achievements toward $100.00 per pound alpaca fiber provide a glimpse of a very bright future for the industry.   

The introduction of EPD’s (Expected Progeny Differences) to the alpaca breeding philosophy will play a significant role in the next advancement to the industry. Being able to compare results of breeding programs will expand and better define our selection of breeding options.  As access to comparative production data becomes commonplace, it will provide credibility to large and small breeders alike and help level the “playing field”.  More unbiased information means less risk and greater confidence to the buyer who currently has only show results and marketing campaigns to aid in their selection decisions. We believe the next 10 years in the alpaca industry will see a much greater degree of recognition to small breeders due to the increased ability to define and evaluate progress.   The alpaca industry will mature as have all other livestock industries. In the not so distant future, breeding programs will be categorized as “seed stock”, “commercial breeding stock” and “general production”.  We go into more detail about this process in our "Weekend on The Ranch" seminar.

The third and probably the most relevant factor is that poor economic conditions create “Buyer Markets”. Buying when prices are low allows for a greater amount of profitability and increases the likelihood of success. Even Warren Buffet has stated the same sentiment referring to securities. It is the buyer who has the capability to recognize real value who will benefit the most in a “Buyer’s Market”.

Most new breeding programs expect to develop their programs for about 3-5 years before selling their production. Where do you expect the economy will be in three to five years from now?   All economic cycles provide opportunity. One just needs to recognize if it is buying or selling opportunity.

John and Cindy

Stargazer Ranch

Stargazer Ranch began in 1998 from our desire to experience more of the Colorado western way of life. Raising alpacas has been challenging and rewarding on many levels and is clearly a splendid lifestyle for "out of the box" people who want more from life than the routine 9-5. Initially, alpacas seemed to be a world apart from our past lives in the healthcare and construction fields. Alpacas have since become our full time enterprise.  Echoing the sentiments of many other alpaca breeders, we can not imagine what else we would rather be involved in at this time in our lives.

Knowledge is a key component to successfully raising alpacas as a business. Serving on a number of alpaca association BODs and working with clients on a national level, has given us an appreciation and understanding of the overall alpaca industry.  We offer frequent seminars covering a wide range of topics to help others learn from our experience. One of our educational events, "Weekend on the Ranch", is an entire weekend devoted to classroom discussions and developing hands-on evaluation skills. A thorough understanding of the alpaca industry helps to develop relevant selection criteria which will aid in making good purchasing and breeding decisions.

Stargazer's herdsire lineup consists entirely of Champion and Blue Ribbon males proven to produce show winning offspring. The combination of utilizing only the best phenotype, along with distinguished genetics, has achieved predictability in our breeding program. This has resulted in substantial generational improvements and success in the show ring.  Ranch visitors are able to view several family groups and see the evolution in each successive generation.  Clients, who utilize our "Breeding Advantage" program, are able to plan and select individual breedings and still qualify for multiple breeding discounts. 

After achieving notable success nationally, showing both suris and huacayas, consisting of mainly "whites and lights", we deliberated about breeding for more color. When one of the top suri breeders voiced an interest in purchasing our entire suri herd, we decided to make the change and expand our huacaya breeding program. The outcome of this recent change is that we now offer a full color spectrum of quality breeding and show stock huacayas.

Not everyone who falls in love with these animals is cut out for the daily routine of animal husbandry or the other aspects of running a business. For the investment minded, Stargazer Ranch offers a long term "Alpaca Management Program" (ALP).  ALP is designed to simplify the start-up for new breeders, provide cost effective access to our herd resources and offer ongoing educational opportunities.

Anybody with access to the internet can "visit" and watch our alpacas 24/7, through our Barn Cameras.  Sharing the excitement when someone experiences the birth of a cria on live streaming video, reminds us again just how lucky we really are.  Our cameras can be found on our "Barn Cam" (still pictures) and "Streaming Video" pages. Personal visits to our ranch and store can be arranged with a little advance notice.

We are excited to be a part of an industry while it is "coming of age".  Every alpaca born continues to be a great asset - whether it is a seed stock, champion producing herdsire or a pet gelding being raised for family enjoyment and fiber production.  We are looking forward to being a part of "The New Livestock Frontier" and we invite you to join us in the journey.

Cindy and John