The Alpaca Farming Bubble Disaster

alpacaI don’t know how many of these bubbles I have been through but greed is always at the heart. It doesn’t seem to matter if is make millions growing organic certified food or plant lemon myrtle plantations people get sucked into the greed and easy lifestyles touted as saviors. A honest business grows or declines with the market based on supply and demand. Simple economics 101 is if supply is high and demand in low the price will be low. Most of these niche systems do initially have low supply have high demand so prices are extremely high but the markets are so small that even modest increases in supply means the price drops considerable.

To give you a idea currently alpacas are currently selling at 70-90% reduction of there asking price a few years ago.

The best way to avoid these mistakes is completing a business plan. In there should be realistic expectations of market expansion and what competitors can enter the market. Building a brand will also help weather some of the downside.

Phrases to look out for:

– solid investments

– a perfect “phased retirement opportunity”

– retirement opportunity for empty nesters, especially those seeking an escape from the corporate rat race.

– minimal or no farming experience

– free 300 page guide

– turn $35,000 to $1,000,000 in ten years

– peace of mind

– tax advantages