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Sunday, November 15 2009

"Is it time to invest in alpacas?". Some of you have heard that question from prospects, friends, colleagues, and possibly, even from family members.

Sure, the number of alpaca sales and the amount those sales fetch are down across the board. But so are my real estate investments and my stock investments. People tend to run from investments AFTER they have declined in value. How many people dumped their stock after the market crashed? And how many more are sitting on the money they took out, waiting for times to improve? Those times are right now. Since March, the Dow Jones Industrial Average is
up 53%. Millions of dollars that had been taken out of the market still has not been reinvested. Those people missed a chance to realize gains.

Do you believe that real estate prices are going to continue to drop? In my area, I think we have just about bottomed out. According to the
National Association of Realtors, forty five states have seen an increase in home sales in the third quarter compared to the previous quarter. Inventory of homes is declining. And once that inventory drops, the prices will begin to increase. It's the law of supply and demand. Double 8 Alpaca Ranch is taking advantage of these prices, by purchasing a larger farm in Loudoun County Virginia. It's a property we could not afford three or four years ago. And it is a win-win proposition. We are helping the current owners protect their declining credit score and avoid foreclosure and we are getting a great property with tons of upside.

These opportunities exist all around us with alpacas. Prices have dropped, and now is the time to take advantage of these opportunities. More alpacas equate to additional income via sale of well bred offspring and processed fiber. There are many debates about the reality of fiber profit.
See this link to add fuel to the fire Today's prices allow you to acquire a few bred alpacas for very little outlay, which gives you the ability to sell the next crop of youngsters from these bred girls to reclaim your outlay next year or buy and hold and watch the group multiply in worth.


It is time for action! First, I implore you to help out your neighbor. This economy has hurt everyone; some more than others. If your neighbor needs help, help them by offering them a fair deal on animals or services they have for sale. Keep your neighbor afloat during these tough times, and they will return the favor when they get back on their feet. Second, take advantage of the market at large. Small and large breeders alike are looking to sell and many are willing to deal. Make them an offer.

See a special package from Double 8 Alpacas here

Posted by: Double 8 Alpacas AT 07:30 pm   |  Permalink   |  Email
Sunday, November 15 2009

The following is an excerpt from the NAAFP website:

Profitable Fiber Producer Spotlight

 

Summer Breeze Ranch (Blanchard, Idaho)

We would like to introduce you to Frank and Beverly Koerperich who started raising alpacas just a few years ago and now have 10-15 alpacas. Upon moving to Northern Idaho, they had their fiber sorted and are members of  NAAFP cooperative. Frank and Beverly share how fiber sorting and participation in the NAAFP cooperative has benefited them. 

 

2006 was the first year Frank and Beverly participated in sorting and using the NAAFP cooperative.  All their fiber was sorted by a certified sorter, but the cooperative had limited fiber runs at that time. They chose to have Lopi yarn made from their WL4 (woolen grade 4 fiber) and have sold all but one skein to date.  They also had a Throw made from WR4 (worsted grade 4 fiber), selling it as well.  Instead of throwing away their leg, belly and chest fiber, Frank and Beverly had several "Texas Rugs" woven.  They have sold 2 - 2x 3 rugs, a 3 x 5 rug and 8 energy mats. They saved the remainder of their fiber for processing in 2007 when there would be more options for products through the NAAFP cooperative.

They were paid $614.50 for their limited products in 2006 

 

In 2007, Summer Breeze Ranch realized the following for their fiber harvest, which included the fiber they held over from 2006

Grade

 

oz

cost to process *

retail

PROFIT**

WL2

46

$85.10

$322

282.90

WL3

73 from 07 - 178 from 06

$621.23

$1,680

$1058.77

WR3

46 from 07 - 16 from 06

$73.63

$406.00

$332.37

WL4

54

$86.40

$192.00

$105.60

WL5

46

$213.49

$494.00

$280.51

WR5

33

$39.19

$231.00

191.81

TX Rug

***

 

 

$1086.50

Totals

 

 

 

$3338.46

* does not include shipping. Processing costs are different on each grade as they are processed at different processors.

** These items are being processed and will go to several retail outlets NAAFP has available to its membership.

*** some of the items from this grade have been processed and returned to be retailed but balance is awaiting to be processed so the actual amount of fiber processed cannot be determined yet.

 

Contribution factors in the 2007 fiber harvest for Summer Breeze Alpacas:

Frank and Beverly moved several of their alpacas to their own ranch which had new pastures.  This affected the amount of total usable fleece as it resulted in significant loss due to excess vegetation (mainly weed heads).  This happens quite often with new pastures as they tend to have more seed heads, weeds, and contaminates.  Their 2008 fleece harvest should be much higher as they have improved their pastures and reduced contaminates.  Frank is learning how to shear as well, which will improve their profit margin by eliminating that cost.

 

         A few words fromBeverly:

         "I was raised on a farm in the Midwest, so raising a crop (fiber, in this case) is in my blood, as is not being wasteful. I feel very fortunate to have started out having my fiber sorted and graded. Because of that, I have had much less waste and have had a wider variety of choices for what I have my fiber made into. By having my fiber sorted and graded, a superior product is produced, which is not only nice for what I use for myself but for the items I have to sell.  Learning about sorting and grading has given me knowledge that helps me in my decisions about which animals to purchase, as well as which herd sires to use in my breeding program. All in all, I see this as a positive step forward in the alpaca industry."  

                                                                                                                                            - Beverly Koerperich

Posted by: Doug AT 03:30 pm   |  Permalink   |  Email
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    Double 8 Alpaca Ranch
    13374 Harpers Ferry Road

    Purcellville, Va 20132

    Phone: (540) 303-7071

    (703)-628-1930

    Email: info@double8alpacas.com