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BelleauWood
Partnership Plans
3P Paca
Partnership Program
First, let me tell you how and why we thought of and believe in
3P. We believe that the alpaca industry offers a unique opportunity to realize
an exceptional return on investment. In 1997, we purchased our first four
alpacas. In November of 1998, we traveled through Colorado and New Mexico
looking at some of the finest alpacas in the U.S. Of the 400 or so we looked at,
we saw about ten that we thought could be the foundation of a superior herd. We
were very excited, but we realized that all of our capital was going to go to
starting our farm. We had to buy property, put up secure fencing, build a barn,
buy a truck and a trailer, buy new computer equipment to create top notch sales
literature, create quality advertisements and brochures, and the list went on.
That was before any alpaca purchases. We also knew that we wanted to buy
exceptional herdsires that were not going to come cheap. With only a few alpacas and all of the start-up expenses,
we were afraid that we would not be able to build a large enough herd quickly
enough to justify all of the expenses. We also knew from our personal experience
as shoppers that farms with fewer than 20 alpacas had a hard time getting
buyer traffic. We knew we had to make it worth people’s while to come see us.
I also found that many breeders were interested in offering package discounts
and if you were able to buy larger quantities, your costs could be greatly
reduced. After talking to a friend who was also considering alpacas, I realized
that the challenges facing us were not unique. Why should ten people all
struggle with the start-up costs of ten farms, when pooling our resources makes
so much sense. Pooling our resources results in a win/win situation allowing us
all to benefit from a larger operation. We know we have to
offer exceptional value to make the relationship attractive for our partners as
well. We offer our partners a one-time initial investment, and we cover all
other expenses. This one time investment not only reduces the complications of
ownership, but allows our partners to put 100% of their investment into breeding
females, resulting in an immediate savings and increased return on investment.
We also use our marketing expertise to create superior programs which benefit as
well as our partners. We think you will agree that 3P offers an excellent way to
build your herd. Here are just some other value and savings we
offer.
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3P
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Agisting
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Farm Start-Up
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Barns
and Equipment
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Free
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Free
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Costs
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Land
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Free
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Free
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Costs
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Feed
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Free
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Free
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Costs
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Labor
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Free
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Free
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Time
Commitment
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Stud
Service
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Free
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Costs
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Stud
Fees/ Purchasing Herdsire
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Shearing
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Free
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Costs
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Costs
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Agisting
Fee
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Free
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Costs
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Free
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Routine
Healthcare
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Free
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Some
costs
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Free
for some/Vet Bills for others
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So,
how does it work?
Well, in a nutshell, you buy the females, and we do
everything else. Each six months,
we split the crias 50/50. It is a
win/win situation for both of us. We
back up the relationship with a very sound contract that protects both of us.
After an initial two year commitment, we renew the contract on an annual
basis. If either party wants to end
the relationship at the time of renewal, we will conduct a final split of
offspring. If and when you are
ready to start your own farm, we will provide full transitional support
including helping you with your business and marketing plan, helping you
establish a web site and helping you plan your farm layout.
If you need help selecting stock, or would like us to do it for you, we
always have several outstanding alpacas ranging in price in mind.
We are happy with whatever level of involvement you choose; from very
involved to totally uninvolved. We
will look for bred females to offer the best value and diversify our gene pool,
but we will also consider some exceptional weanlings that are on the market.
Every six months, on January 1st and June
1st, we will evenly divide the crias. The first time, you get first pick of the females and we get
first pick of the males. After
that, we start off where we left the last split for that gender.
For example, if you had six females, three due in the Fall and three in
the Spring; the first Fall, your females produce two males and one female.
You would get full ownership of the female, we would get full ownership
of our top choice of the two males and you would get the other male. In the Spring, your females produced two females and one
male. We would get the first pick
of the females and the male because you had last choice the prior year.
You would get the second female. At
the end of the first year, you have two females and a male, and we have two
males and a female.
Herd
Growth
I am sure your first concern is how splitting the
crias is going to effect your herd growth.
When I began planning 3P, I
thought this would be my biggest obstacle to overcome.
You can imagine how excited I was when I began to analyze the herd growth
and realized that it was equivalent to the AOBA herd growth scenarios in their
publications. Combined with the reduce risk, labor, and all the other
benefits we offered, the entire plan made perfect financial sense.
If you want to sell some of your stock, we can arrange to sell it at a
time that doesn’t hurt our stake in the offspring.
We will market your animals at half off the going brokerage fees.
Below, I have outlined a typical 3P
start-up scenario. Remember, this
is just one scenario. I have built
a detailed herd growth calculator and can provide you with a customized plan and
projections based on your initial investment, investment time frame, income
goals and other requirements.
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Start
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Year 1
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End
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Year 1
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End
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Year 2
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End
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Year 3
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End
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Year 4
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End
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Year 5
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#
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Value
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#
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Value
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#
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Value
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#
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Value
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#
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Value
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Grade
A Adult Females
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2
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$50,000
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2.00
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$50,000
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2.00
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$50,000
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2.00
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$50,000
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2.00
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$50,000
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2.00
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$50,000
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Grade
B Adult Females
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3
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$60,000
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3.00
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$60,000
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4.40
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$88,000
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5.80
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$116,000
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7.48
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$149,600
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9.44
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$188,800
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Grade
C Adult Females
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2
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$30,000
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2.00
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$30,000
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2.00
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$30,000
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2.00
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$30,000
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2.00
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$30,000
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2.00
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$30,000
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Weanling
and Yearling Females
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0
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$0
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1.40
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$25,200
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1.40
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$25,200
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1.68
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$30,240
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1.96
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$35,280
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2.30
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$41,328
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Senior
Herdsire Males Males
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0
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$0
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0.00
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$0
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0.28
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$7,000
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0.56
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$14,000
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0.90
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$22,400
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1.29
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$32,200
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Junior
Herdsire Males
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0
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$0
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0.28
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$2,800
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0.28
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$2,800
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0.34
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$3,360
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0.39
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$3,920
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0.46
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$4,592
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Fiber
Animals
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0
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$0
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1.12
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$2,016
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2.24
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$4,032
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3.58
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$6,451
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5.15
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$9,274
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6.99
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$12,580
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Total
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7
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$140,000
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9.80
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$170,016
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12.60
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$207,032
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15.96
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$250,051
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19.88
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$300,474
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24.47
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$359,500
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Total ROI
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21.44%
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47.88%
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78.61%
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114.62%
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156.79%
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*
Assumptions ~ 80% birthrate, 20% of
all males are herdsire quality, crias are split 50/50. Wool sales are not factored in, but would increase the ROI.
This assumes holding all offspring.
If you want create to current income, you will have to sell some of your
stock and reduce your overall returns and herd growth.
Give
us a call today for a free, no obligation customized plan. We can prepare a customized growth projection and
investment potential spreadsheet for up to a 7 year investment timeline.
We will customize your plan to meet your cash outlay, income, and herd growth
objectives.
Click
here to find out more about investing in alpacas!
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