What Does a Herd Dispersal Sale Mean to YOU?

This topic was created out of a question asked by a new breeder in the midst of creating his business plan. To be perfectly frank, I hadn't given it a great deal of thought until he posed the question. AATC currently has room for more alpacas but buying alpacas doesn't fit in our current business model. We are currently fortunate to be agisting 35 alpacas for our clients, are planning on 17 more cria (about half of those for clients) for the 2009 birthing season, have 17 members of our foundation herd and 23 alpacas for sale.

So, I sincerely had to give it some thought. Bottom line there is no simple answer. Dispersal sales are designed to sell off an entire farming operation or group of livestock in an expeditious manner generally brought about by an event such as retirement, health issues, death of an owner, financial necessity, market fluctuations--the list can be endless. Whether it is a good opportunity for the buyer remains to be seen. Nothing can take the place of your own due diligence. A great deal is no deal at all if you have registry problems; if the herd has health issues; if you can't get them bred--and there is no one left at the farm to honor the contract. The dispersal sales you see on-line and in your mail box are an opportunity and a risk. You are the only one who can define what level of risk you are capable of withstanding. As with any purchase of breeding livestock you must make sure the animal is registered, that the seller you are buying from has a right to sell the animal, and that the breeding animals come with live birth and reproductive guarantees. If there is a guarantee will the seller be in a position to honor that guarantee after they retire from the business?

Do not get me wrong--there are many reputable alpaca breeders out there selling their herds--and you can be comfortable in buying from them. But be sure to do your due diligence. Being a retired CPA, I like a good deal. But a good deal could be the purchase you make from a breeder who is not going out of business; who may be charging a bit more than the dispersal farm; but will still be in business after you have taken the animals home. That is a decision only you can make.