2006 Alpaca Auction Prices
I've heard a number of people lately lamenting that there are too many auctions these days resulting in depressed alpaca prices. While I do agree there are far more auctions and more lots within each auction today than there were a few years ago, I don't agree with the notion that the number of auctions is resulting in depressed prices. As an industry, we have always enjoyed the "demand side" economic benefits of too few good animals to fill the demands of of our breeding programs.
As a young industry, we must be cautious of allowing the ebbs and flows of auction prices to flavor our outlook for the industry. Over the past few years, there have been a number of record setting sales. This activity, although wonderful for the sellers and titillating to those considering entry to the industry, is not as good for the industry as the posting of consistent and stable sale prices.
If anything, auction prices are driven by the quality of animals being offered. This is as it should be! If prices are at all disappointing, it's because there are too few elite animals available for auction lots.
At all of the auctions I have attended, price has been commensurate with quality. The animals with the best fleeces, confirmation, color and bloodlines have brought the highest prices while those of lesser quality have brought the lowest. This is a good thing! It shows that the alpaca market is efficient in that quality is rewarded by price.
In reviewing the Celebrity Sales auction results for 2006, the average price ranges show signs of stability in that they mirror the results from prior years. If one eliminates the high priced animals from the calculation, the averages remain well within acceptable ranges.
A summary of the results is as follows:
Date /Auction /Avg Price /High
9-06 /Eastern Extreme /$29,000 /$165,000
7-06/ Parade Of Champs /$42,500 /$205,000
5-06 /AOBA /$32,000 /$100,000
4-06 /Futurity/ $42,000/ $150,000
2-06 /Snowmass/ $59,000 /$500,000
1-06/ Am. Choice /$28,000/ $ 85,000
It will be interesting to see how the auction side of the industry will evolve as we move forward. As the number of high quality alpacas in the domestic herd increases, I believe a bifurcation will occur wherein elite and production alpacas will be sold at separate auctions.
My humble opinion.
As a young industry, we must be cautious of allowing the ebbs and flows of auction prices to flavor our outlook for the industry. Over the past few years, there have been a number of record setting sales. This activity, although wonderful for the sellers and titillating to those considering entry to the industry, is not as good for the industry as the posting of consistent and stable sale prices.
If anything, auction prices are driven by the quality of animals being offered. This is as it should be! If prices are at all disappointing, it's because there are too few elite animals available for auction lots.
At all of the auctions I have attended, price has been commensurate with quality. The animals with the best fleeces, confirmation, color and bloodlines have brought the highest prices while those of lesser quality have brought the lowest. This is a good thing! It shows that the alpaca market is efficient in that quality is rewarded by price.
In reviewing the Celebrity Sales auction results for 2006, the average price ranges show signs of stability in that they mirror the results from prior years. If one eliminates the high priced animals from the calculation, the averages remain well within acceptable ranges.
A summary of the results is as follows:
Date /Auction /Avg Price /High
9-06 /Eastern Extreme /$29,000 /$165,000
7-06/ Parade Of Champs /$42,500 /$205,000
5-06 /AOBA /$32,000 /$100,000
4-06 /Futurity/ $42,000/ $150,000
2-06 /Snowmass/ $59,000 /$500,000
1-06/ Am. Choice /$28,000/ $ 85,000
It will be interesting to see how the auction side of the industry will evolve as we move forward. As the number of high quality alpacas in the domestic herd increases, I believe a bifurcation will occur wherein elite and production alpacas will be sold at separate auctions.
My humble opinion.
posted by AlpacaBanker @ 1:38 PM
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