From The Outside Looking In

My Thoughts

On The Future

Of The Alpaca

Industry

ABOUT ME.

 

I have been involved in agriculture for over 40 years and have seen many ideas or fads come and go. Some have caught on and become viable businesses while others fell by the wayside because of poor planning, lack of direction and even the fact they they had no needed purpose.

 

I am not an alpaca owner or involved in the fiber business. My knowledge of the alpaca industry comes from conversations with owners, breeders, fiber mills, and others involved with the various sectors of the alpaca industry. I am standing on the outside looking at the industry as a bystander.

 

 

 

My Research

In all viable agricultural businesses the end product or service determines the future of the business. The future of the U.S. alpaca industry ultimately lies in the market for products made from alpaca fiber. Obviously this is not the driving force behind alpaca sales today and will not be for quite a while. But just as the meat on the table is the main determining factor in the cattle industry the alpaca products people wear will be the driving factor behind the future alpaca market.  

     When I was first asked to develop this website I realized that I needed to do a lot of  research. I new very little about the alpaca industry. I started by stopping at a few alpaca farms and just talking. Several of these had only three or four alpacas. The comments and requests of these small alpaca breeders prompted me to continue with this website. Since then I have talked to alpaca farms of all sizes, fiber processors, spinners, weavers, knitters and other related businesses. The most talked about area of the alpaca industry is fiber sales. I am going to share some their comments, questions, concerns and opinions before I share my observations.

         

From The Owners

These are typical comments made by many of the alpaca owners that I have talked to.

 

Who will by my fiber?     What is my raw fiber worth?    

Where can I have products made from my fiber?  

I thought I could sell my fiber for enough to pay my feed bill.

 A couple of small owners went as far as to say "I was misled to the value and demand for alpaca fiber when I bought my animals."

I am very disappointed in the fiber co-ops.

I wish I would have learned more about care and handling of alpacas before I bought my first ones.

The prices of the imported alpaca products are much cheaper than the American fiber products. 

Is there a good way to know what color of cria I will get? (Predicting Cria Color)

 

From The Fiber Mills/Processors

Owners will send in three fleeces to be processed: they will be three different colors or three different qualities.

Owners need to keep their alpacas cleaner o there will be less hay and dirt in the fleece

Owners need to be better educated on what effects the quality of their fiber

There needs to be a a more consistent standard for sorting raw fiber

 

From Knitters, Spinners & Weavers

We would use more alpaca yarn but it is often hard to find enough of the same color for projects.

The quality and cleanliness of the raw fiber varies to much.

 
 

My Early Observations

 

There seems to be three main types of alpaca farms

First is the breeding stock producers. They only concern seems to be the raising selling of show quality breeding stock. This is a true profit driven business. Their concern for fiber quality is how they can use it to sell their animals. They seem to care less if a market for fiber is developed. [Two large breeders stated that "disposing" of the fiber was an aggravation and their concern was not fiber but selling animals.] 

 

Second is the producer that is concerned with not only raising and selling how quality breeding stock but has a desire to develop and support the fiber end of the business. This is a true profit driven business. These owners seem to know the future of the industry.

 

Third is the hobby farm. While owning and raising quality alpacas is important the involvement in shows and building relationships with other alpaca owners is their goal. Their animals are pets first and business inventory a far second. Their involvement in the fiber is their pride in wearing or showing products made from their pets fleece not trying to make a profit from their fiber.

 

*     *     *     *    *     *     *     *

While there are a few farms where fiber production is their main concern and the alpacas they raise and sell are valued by the quality and quantity of fiber their animals produce they seem to be few and far between. More of these farms must be developed in the future.

 

*     *     *     *    *     *     *     *

To survive in the alpaca industry alpaca owners/breeders must decide what type of operation they desire to have.

 

My Conclusions: From Conversations

 

Alpaca owners must do a better job handling their alpacas to have cleaner, higher quality fleeces to send to the processors. This includes everyday care (bedding, feeding ect,) and shearing practices.

 

Owners must become educated on how nutrition effects fiber quality. Be sure of what you are feeding your alpacas.

 

There must be a more consistent standards grading fleece quality.

Fleece testing will become more and more important, this will be a major factor in determining fiber value.

 

Owners need to have larger quantities of each color and if the diversity of color is desired they need to have more research on color genetics to keep the colors true. (Predicting Cria Color) 

 

As the fiber market grows there will be a need for more white fiber.

 

Many first time buyers got caught up in the make money overnight thinking. When reality hit some became discouraged and even angry about what they were led to expect from their alpacas. 

 

Another selling plow is "Let The Government Pay For Your Alpacas" through tax write-offs and depreciation. Owning alpacas like any other livestock operations have tax deductions fro operating expenses, but you still have to write a check and buy the alpacas with your money and the governments.

 

The Trading of Herdsires or Herdsire Service? 

    I have had some comments from some smaller alpaca farm owners about the need to introduce new genetics into their herds, but they are unable to justify the capital outlay that it would require to bring in a new herdsire. Some  of these farms may not have the capital to invest, some may have too many herdsires already.

    Small size alpaca farms may need to look into the old idea of barter. Where herdsire services are traded or even herdsires are swapped and no or only a little cash is involved.

    What do you think? Email your comments 

 

The Future Of Alpaca Fiber

My thoughts on the future of the alpaca fiber industry

The fiber sales is the future of the alpaca industry. Every area of the industry must realize this and begin to move in this direction. The demand for products made from alpaca fiber will grow but the question is "How is the US alpaca industry going to compete with the imported products?".

The market for raw fiber must be developed. Not every owner wants to have a farm store so they must be able to sell their fleece at shearing. There is going to have to be a way to determine if raw fiber is worth $3 an ounce or $3 a pound.

Alpaca shows will have to become fiber quality based. The top alpaca will be the one with the most valuable fleece.

Research must be done to determine what the best micron count is than a easier way to test fiber must be developed so test can be made locally instead of having to send a sample across the country and having to wait several days for the results.

Could one answer be that the shearer be able to test and market the raw fiber?

In a few years all breeding decisions could be based upon the fleece of the sire and the dam.

 

 

Why Test Your Fiber

Ultimately the future or the end of the American Alpaca industry will depend upon the demand for products made from American Alpaca Fiber. The higher the quality of the raw fiber the higher quality of the finished product. Alpaca breeders must know the quality of the fiber their animals produce. Breeding programs must stress quality fiber first. While confirmation should always be an important in a breeding program, fiber quality should be be most important area of future Alpaca shows. 

     As the Alpaca industry moves from a expansion driven market to a fiber driven market fiber testing will be even more important. The selection of herdsires will be based on their ability to produce cria that with the best fiber.

     Can quality fiber be judged by it's look? Or it's feel? Fiber testing is the tool that will lead to a much better ability to select herdsires and dams.
 

Some Suggestions For Those Thinking About Becoming Alpaca owners.

 

Research.....Research....Research.....Learn all you can before you buy. Talk to owners (not just to those who you are buying from). Visit internet sites. Talk to fiber mills. Feed suppliers. Check out your local area for potential buyers for your raw or processed fiber products and know what their needs are.

 

Be clear in what you expect from your alpaca farm: Is it going to be a hobby or a business.

Learn the tax laws that apply to your operation.

Develop a long term plan: know where you want to be in five years.

 

Specialize in one color: while there are 22 colors of alpacas and variety looks nice in the field. Start out with one color so you can have large enough quantities fleece to meet the needs of a prospective buyer.

 

Know what you are feeding your animals.

 

Do not allow yourselves to get caught up in the "make big bucks overnight with alpacas" thinking. The potential for nice returns is a definite reality but several owners I have talked expected unrealistic quick profits.

 

 

Some Plain Talk for 2010

When I was first approached by a couple of alpaca owners in Ohio about the need for a website to consolidate information about Ohio's Alpaca Industry I told them that I would be honest and never whitewash my opinions.

During the last year I have had some interesting conversations with several alpaca owners and others involved in the alpaca industry and have some thought that I feel I should share.

 

Alpaca Owner Apathy

Most alpaca owners are not as concerned about the alpaca fiber industry as they seem to be. It seems to me that the larger size herd the less concern there is for the fiber sales. If they are honest most breeders would tell you they are not raising alpacas for their fiber. I have actually been told by two alpaca breeders that they are not interested in what happens with the US alpaca fiber industry there concern  is selling alpacas only.

I have emailed several alpaca owners and even placed a request on OhioAlpacas4u.com to find out what colors of alpacas they will be shearing in 2010 only one small farm replied. There was no charge to list their colors. I had talked to a mill, a couple of fiber artist guilds and some knitters who wanted a way find out what was available. They still have no easy way to find what they need. Some of these groups have emailed owners see what they had for sale but received no reply.

Fiber Value

Commercially raw alpaca fiber is not worth $3 or $5 per ounce. While some fiber artists, spinners and weavers will pay this price for a few fleeces commercial buyers (mills, fiber pools, ect.) pay $2 to $5 per pound. This is the real value of most alpaca fleeces.

Is the demand for alpaca fiber really greater than the supply?

If this demand is so great why do alpaca owners give their fiber to the large fiber pools for the ability to buy products from the pool? Or does it really make sense that other groups are charging a fee of up to $250 to join their their group so you can sell fiber to them for about $5 per pound?

Alpaca Herdsires

I talked to a few alpaca owners about the number of males available for breeding on their farms. They were in different states. The total number of males that they were trying to sell or rent as breeders was over 45% of the total number of alpacas on these farms. Two of the owners expressed the same concern about the number of available herdsires.

I started looking at farms listed on Alpacanation to see if this 45% figure was consistent. It was. I was surprised at the number of farms that actually had more males on their farms than females.

 

Business Apathy

In the fall of 2009 I tried to contact a company that produced products from alpaca fiber seconds. This company takes in the raw fiber in exchange for some of the product they produce. I sent several emails about ways to get some samples of their product for a couple of potential customers to try. One potential customer even tried to email  and phone them without a single reply. It was not until after I sent an email asking them if they still did fiber exchange and told them that if I did not get a reply I would have to remove their free listing if they did not respond, they responded but without offering a way to get some samples.

I have contacted the two major fiber testing labs about helping develop a page about testing alpaca fiber. One company did do a one-time listing. The response from the other made be believe that they see no need to advertise. Maybe they are right I see several breeders who pay to have their fiber tested and advertise for them. This page is going to be developed anyway.

Alpaca Owner Farm Stores: I am trying to develop a list of alpaca farm stores on CountryShopping4u.com. Very few owners have responded with any information. If they sell only products made in the USA from American fiber they can list for free. There is a small charge (starting at $25) to list imported products. I must come to the conclusion that most farm stores are so busy they need no exposure or most alpaca products are actually being promoted and sold to alpaca owners.

Why does the AFCNA have products made in Peru on their "America's Alpaca Store"?

Why do you not see more wanted to buy ads for alpaca products on the major alpaca websites?

Posted 4-27-11, The last alpaca show I visited was just to get see what was going on again I noticed that most alpaca fiber products were still geared toward alpaca owners. Most sweaters I saw on alpaca owners were not from alpaca fiber. Now I could be wrong about this because I did not talk to anyone owners or business with displays so more of the clothing I saw being worn could have been from alpaca fiber but most looked like just plain sweaters.

      If I am honest most alpaca products I saw were not very good looking. In fact most of the sweaters, gloves, socks ect made from US alpaca fiber I have seen in shops and shows look amateurishly made.  

 

My Conclusions - From The Outside Looking In

Those selling alpacas must be more open about the true value of raw alpaca fiber. I have had several email from new owners who feel that they were misled and even lied to about the value of the fiber.

The larger alpaca owners must take a more active role in promoting American made alpaca products to non-alpaca owners - the general public. Fewer products need to be advertised in alpaca trade publications and more in general fashion publications.

Owners must know the quality of the fleece they are producing. This means fiber testing. Many owners have no idea of the micron count of their fiber. A standard for fleece micron count must be established within the industry so quality fleece production can be rewarded. But here is a problem: is it really worth the cost if you are going to sell your fiber for $5 a pound. How will fiber testing ad money to your pocket?

Alpaca owners should consider placing more alpaca products (yarn, felt, ect.) in shops on a commission basis. This will increase exposure for alpaca products and create future wholesale buyers. 

Alpaca owners should consider pooling their products into one community farm store with a larger selection instead of having four or five small farm stores with limited selection. These stores would attract more buyers looking for larger quantities or wider selection of colors

There are way to many herdsires. When herds are 40% or more males available for breeding there is a problem. More herdsires need to be turned into fiber males.

The Alpaca Taboo: Eating alpaca meat. Today (4-23-10) I had a phone conversation where this was discussed than an email came about the same thing. I have put off this idea because most alpaca owners were appalled at the idea of eating alpaca meat. But the fact is fiber sales alone will not support the alpaca industry. I have been told that alpaca meat is very tasty. This could one answer to the future of the industry. This also opens up the alpaca hide or leather business. Do you have information to share on this subject email:. .  More will be coming soon.

 

 

More will be coming soon.

 

 

For 2011

5-16-2011 - I have been asked to see what slaughter houses are able to slaughter and process alpacas for retail. More on this to come

6-11-11I am contacting the "Industry leaders" to see what they are doing to promote the fiber part of the industry See below click here

June 30, 2011 - I have talked to two alpaca breeders in the last week that are ready to throw in the towel and get out. Both have been raising alpacas for over 6 years. Both are now understanding that slaughtering alpacas could come to be an important part of the industry.

6-30-11I still get no comments that are beneficial to the industry from alpaca owners.

6-30 -11Another observation - When I thought about starting OhioAlpacas4u Glen Burns of Georgia Mountain Fiber strongly supported the idea and was the second business to pay for a listing and renewed yearly. Glen had a passion for The U.S. Alpaca Industry and was working on ways to develop the fiber and fiber product sales. When Glen died so did his dream and no one has come along after him with the same passion for the industry.

 

 

 

What are they doing to promote the sale of your alpaca fiber?

I have emailed these businesses to see what they are doing to help sell your fiber. Their response will be posted here.

6-11-11 - Still No Reply

I never received a reply from any of the groups listed below. My next question is why? These groups should be promoting the fiber for those who are members or customers. Shouldn't you, alpaca breeders/owners be asking them the same question.

 

Date Emailed

Date Of Response

 Their Response

Alpacanation

4-27-10

 

 

Ideal Alpaca Community

4-27-10

 

 

Alpacas Of America

4-27-10

 

 

Magical Farm

4-27-10

    

A new round of questions 2011

AlpacaNation

My email 6-11-11

Sat, Jun 11, 2011 at 9:29 PM, Tom May <alpacas@alpacasr4u.com> wrote:
 

I am trying to collect information on the alpaca fiber market. I have had several comment from alpaca owners who have visited AlpacasR4U.com about the need for more accurate infotmation about selling their fiber. I have a couple of questions about what you as an industry leader are doing to help develop this market for your members/customers.

  1. Are you providing information to your customers on where they can sell their fiber?

  2. Are you researching way to help develop the alpaca market other than allowing breaders to list what they have for sale on your site?

  3. Are you actively working to help develop the fiber market. 

  4. What other ways are you helping develop this market?

You responce will be shared on AlpacasR4U.com

Thanks Tom May

Their Reply: 6-14-11

Hello Tom,

Thank you for your inquiry.  I looked at the website you discussed below but I could not find any reference to you on the website.  Can you tell me your affiliation with the website and the alpaca industry? 
We did discuss your questions on our team conference call and would be more than happy to give you some feedback.  But we would like to understand more about the various websites, the goal of each website and the affiliation you have with the industry first.  Thank you so much

Warm regards,
Kristy Adams
Business Manager
AlpacaNation LLC http://www.alpacanation.com
LlamaNation http://www.llamanation.com 
The Worlds Online Alpaca & Llama MarketPlace!


My Reply:

Alpacasr4u.com and OhioAlpacas4u.com are my websites. They were started a few years ago to consolidate information about the alpaca industry. The Ohio site was first and is receiving about 30+ visits a day. The main goal of OhioAlpacas4u.com was to help develop information to promote the alpaca fiber market. I stated on the website (http://alpacasr4u.com/outside_looking_in.htm) I am not an alpaca owner or involved in the fiber business. These websites are information websites. The number of emails I have received from owners over the years show concern about the fiber business.

(http://alpacasr4u.com/future_of_alpaca_industry.htm) I am going to be updating these website soon and will be adding new comments and information. I main focus of my questions is as an industry leader what is you opinion of the future of the US alpaca fiber industry and what are you doing to help your members to sell their fiber (to non alpaca owners).

Tom May

 

Their reply as of 6-30-11 NOT A WORD!

 

To:AlpacaStreet.com

Letter, the reason I sent a letter they did not acknowledge a email sent via their form.
June 30, 2011
Dear AlpacStreet
Several years ago I started the website OhioAlpacas4U.com. Holmes Laboratory and the late Glen Burns of Georgia Mountain Fiber encouraged me to start this website to help compile information that could help promote the alpaca fiber industry. Several Ohio breeders also helped by listing their farms. I am continuing to work to find ways to help alpaca owners market their fiber products.
Would you please respond to a couple of questions about your business

What are you doing to help promote the U.S. fiber and fiber product market?
Are you advertising the products in your “AlpacaStreet Mall” to non-alpaca industry members?
On your “Alpaca Sale Trends” page why don’t you include prices these alpacas are bringing and fiber sales trends (including prices)?
Please email your responses to tommay@ohioaplacas4u.com
Your response will be appreciated and will be included on OhioAlpacas4U.com and AlpacasR4U.com
Thanks Tom May

 

Their Reply - NONE!
 

To Alpacas Of America

Email 6-30-11

I started Ohioalpacas4u.com several years ago to consolidate information about Ohio's Alpaca industry and try to find information to help alpaca owners to sell their fiber and fiber products. I must admit that there is really no real help for the owners when it comes to their fiber sales. Would you reply with a couple of answers.

As the largest alpaca breeder in the US,

What do you see as your responsibility in helping develop the fiber market?

What are you doing to promote the alpaca fiber and fiber product market?

What do you see the for future of the US alpaca industry?

Your comments will be shared on OhioAlpacas4u.com and AlpacasR4U.com

Thanks Tom May

 

Their Reply:

 

To Magical Farms

Email 6-30-11

I started Ohioalpacas4u.com several years ago to consolidate information about Ohio's Alpaca industry and try to find information to help alpaca owners to sell their fiber and fiber products. I must admit that there is really no real help for the owners when it comes to their fiber sales. Would you reply with a couple of answers.

As one of the largest alpaca breeder in the US,

What do you see as your responsibility in helping develop the fiber market?

What are you doing to promote the alpaca fiber and fiber product market?

What do you see the for future of the US alpaca industry?

Your comments will be shared on OhioAlpacas4u.com and AlpacasR4U.com

Thanks Tom May

 

Their Reply: NONE!

To: Ohio Alpaca Breeders Association

 

Email 6-30-11

Dear OABA
I started Ohioalpacas4u.com several years ago to consolidate information about Ohio's Alpaca industry and try to find information to help alpaca owners to sell their fiber and fiber products. I must admit that there is really no real help for the owners when it comes to their fiber sales. Would you reply with a couple of answers.
As Ohio largest alpaca breeder asson,
What do you see as your responsibility in helping develop the fiber market?
What are you doing to promote the alpaca fiber and fiber product market?
What do you see the for future of the US alpaca industry?
Your comments will be shared on OhioAlpacas4u.com and AlpacasR4U.com
Thanks Tom May

 

Their Reply: NONE!