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H e r i t a g e F a r m S u r i A l p a c a s

Valuing Our Past, Breeding for the Future

Breeders’ Market vs. Fiber Market ~ (cont. from page 1)

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Heritage Farm Suri Alpacas t Tim and Beth Sheets. t Flora, IN 46929

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It is good for those that have a good breeding program and are paying attention as to improving their herd. It may be not so good for those that don't. In the past few years, the value of quality stock has increased a great deal. On the other hand, the value for common or lesser quality alpacas has declined. This is the expected natural progression and maturation of the industry. It is expected that the industry will continue to sort, or sift, itself out in this manner. Considering that there is a limited number of breeding animals available for purchase in the United States, and there is a high demand to enter this industry, established breeders and others wishing to begin an alpaca venture can experience success during this period.

Years from now, when the national alpaca herd size is large enough to support fiber mills in the U.S. and there are fewer people entering the business in comparison to the supply of animals, the industry will transition to a fiber market. At that time most alpacas will be bought and sold at prices that support their production. Fiber animals today sell for between $500 and $2,500. Current estimates are that it will take a ½ million to 1 million alpacas to support high production fiber mills. Even when the day arrives that most alpacas are valued as fiber animals, there will still be animals selling for $25,000, $50,000 and $250,000. These higher priced alpacas will be elite breeding stock, animals that have the genetic power to improve the conformation and fiber of the overall U.S. herd.

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This article is an excerpt from ALPACAS—a Getting Started Guide. This 50-page resource is available as a free download by clicking here. Check our the table of contents for information on topics covered.

In the United States, the alpaca industry is currently experiencing a breeders’ market, which could be described as the development phase of any new livestock introduction. This period is necessary to accumulate the genetics to allow U.S. breeders to be competitive in world markets, and to build the number of alpacas necessary to support a high production fiber mills in the U.S. During this breeders’ market, prices for breeding quality animals will remain high because of the animal’s rarity and high demand.

You may be wondering if this is this good or bad. First, one must keep in mind that a breeders’ market exists in all livestock industries. So, the answer is that the current breeder's market is both good and maybe not so good.

Cover of Our Getting Started Guide

This article is an excerpted from ALPACAS—a Getting Started Guide. This 50 page, comprehensive guide is available as a free download from our website by clicking here.