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by Mark Puhr
February 26, 2002
Homestead Alpacas
I want to thank everyone for stopping by the booth last weekend. I hope your questions were answered, but just in case, this web site is here to help. Visit the links, Frequently Asked Questions, Getting Started, and Raising and Managing Alpacas for more information. Or, stop by the farm, give us a call and schedule an appointment.
I was a member of the panel discussion on alpaca questions. I'll review the my answers to the topics and your questions about the business.
A little background information about myself
I have been raising alpacas for the past three years. My farm name is called Homestead Alpacas. Our farm is an old farm built in 1904. I raise both Suri and Huacaya alpacas. I started out with two pet quality Huacaya gelded males we used as trainer animals, then purchased a package of three Suri, two pregnant females and one male. Currently I have twelve animals, four Huacaya and eight Suri.
Animal Selection
I believe in purchasing the best quality animals for your given budget. There are high quality and low quality animals, lots of factors determine quality, choose the best quality animals for your budget. Color will also be a factor, currently, darker colors are the trend and bring higher prices. If you can afford color, then get it, otherwise choose a good quality white animals. Many white animals have color genes, so you are likely to get color depending on the sire.
Breeding
I purchase my breeding, pay for top quality stud services. Always breed up or improve your stock. I do have one stud that I use for breeding, but I also diversify my bloodlines as well as improve quality by purchasing breeding from top herdsire. I do not want to manage and deal with multiple studs on my farm. A good analogy to studs is time-share vacation homes versus choosing different vacation spots every year. Same for studs, if you have one, you may feel locked into breeding to that stud.
Stud fees will cost anywhere from $1,500 to $3,000 dollars. Another reason to purchase breeding is financially it is better use of money given that breeding fees are expensed, in the same expense bucket as veterinarian expenses. Studs can be depreciated (which is another form of expense), but when sold the recovery revenue is taxed just like ordinary income. Financially and herd quality are in favor of purchasing breeding.
I not only use my stud for breeding, but also for behavior training of the juveniles. When I wean male crias, I'll put then in with the stud so he can teach the juveniles how to behave. This is especially important when you've handled the babies a lot, you do not want your male alpacas to have the "Berserk Male Syndrome". This occurs when babies that have been handled a lot, grow up thinking people are alpacas, and so when they become breeding age, they are a problem to humans.
Marketing
My business plan calls for herd growth, so I have not actively marketed my herd other than at events such as National Western Stock show and Alpaca Extravaganza. Marketing expenses can be anywhere from $5,000 to $20,000 per year. In about two years I'll be in a position to actively market my herd. Marketing is not easy nor for everyone, it takes considerable expense and understanding to effectively market your animals.
Conclusion
Have a good business plan and financial analysis of your goals. Purchase quality animals, choose studs that will improve your quality, and most of all, enjoy the animals that you have.
For more information about alpacas; visit farms, web sites or stop by the Homestead. Feel free to stop by and see the alpacas and learn more about raising these unique animals from South America.
Homestead Alpacas is located in Greeley, Colorado. We raise Suri and Huacaya alpacas of Peruvian and American origin. We'll be glad to talk to you about the various qualities and answer any questions about purchasing, raising and the ranch management.
Homestead Alpacas, 7880 W 20th St,
Greeley, CO 80634, (970) 506-0799, 
