Jack and Jill purchased the Hill
And started to breed alpaca
Fleece went down and costs went up
Now it’s all hard Yacka.
A Hypothetical Cost Analysis of Association Charges.
Jack and Jill have a small herd of alpaca which they wish to breed from, perhaps sell a few animals
and sell their fleece or use it themselves for home “value added” crafts.
They have just purchased 20 breeding females and one potential stud male which they need to
register and / or certify in order to register future progeny.
They expect 20 cria per annum, half of which they will retain as breeding females and half will be
males, a couple of which may be suitable stud males in the future and some they will sell as wethers to
keep the cash flow going. However, there is a problem. Whilst all 20 females are registered with the
AAA, only 19 were correctly transferred to Jack and Jill at Blue Hills Alpacas. The owner of the last
of the 20, the most expensive of all, refused to perform the transfer arguing that it would cost him $ 95
to do so. In fact, because he failed to do it within the specified 30 days, it would now cost him $ 190 !
Without that transfer, what can they do ?
Like everyone else, Jack and Jill are suffering from the drought and having to pay high prices for
supplementary feed. ( Lesson #1 – buy the bottom of the Hill, not the top. )
They also find that the fleece they harvest is more expensive to transport than they get from selling it
to a single desk buyer.
All of their variable farming costs are the same, no matter which Association they choose to join.
They are simply looking for an association where they can register their animals and progeny, DNA
test their progeny to prove parentage and join a group of like minded breeders where they can openly
share their thoughts, ideas and questions on line whilst having some input into the management of
their chosen association. Be listened to, replied to and feel involved. Nothing terribly complicated.
That night, Jack and Jill sit down to a roast lamb dinner ( what did you expect ? Saddle of Alpaca ? )
and a glass of …………….. ( fill in as desired ) and look carefully at the FIXED costs of alternative
associations, in order to fulfill their dreams.
First, they look at membership fees per annum. No contest there, AABA is a clear winner.
However, if they choose AABA they have to register the females. Then, that expensive stud male,
maybe have him Certified and DNA tested with the AAA or record his DNA with AABA to prove
parentage of his future progeny ?
“But what about registering the 10 females we expect each year “? says Jill.
“Yeah , but we have to register the males as well,” says Jack as he pours himself another glass of …..
( complete as desired ). “And what if a couple of them have stud potential and we want to Certify
them and / or DNA test them ?”
Jill, aware of the drama building, pours herself another ……. ( Oh, you get it) and on the back of her
napkin, draws out a cashflow budget that EVEN Jack can follow.
Jack is aghast! He studies the figures ( and pours himself another …………………) and turns to Jill.
“ Jill, my darling, you are so clever with figures,” exclaims Jack.
[ Jill rolls eyes ]
Together they study the figures which include GST, and look like this ;
ITEM [year 1] AABA AAA
- Joining Fee (once off) 22.00 n/a
- Annual Membership 55.00 200.00
- Register initial herd prefix Free 110.00
- Register 20 females 220.00 n/a
- Register 1 male < 12 months 11.00 5.50
- Stud male DNA test kit (1) inc 5.50
- Vet DNA blood Test * (1) Not needed 50.00
- Stud male DNA recording (1) # 38.50 66.00
- Record Certified Male (1) Not needed 220.00
- Veterinary Certification Fee ** Not needed 100.00
TOTAL $ 346.50 $ 757.00
ITEM [year 2]
- Annual membership 55.00 200.00
- Register 10 female cria 110.00 330.00
- Register 2 male ( stud ) cria 22.00 11.00
- Register 8 wethers 17.60 44.00
- Transfer reg. 5 females sold < 30 days 55.00 475.00
- Transfer reg. 8 wethers sold < 30 days 17.60 44.00
- Stud Male Test Kit (2) inc 11.00
Vet DNA Blood Test (2)* Not needed 75.00
- Stud Male DNA recording (2) # 77.00 132.00
- DNA test 10 female cria 385.00 Not Provided
- Record Certified Male (2) Not needed 440.00
- Veterinary Certification Fee (2) ** Not needed 200.00
TOTAL $ 739.20 $ 1,962.00
* = AABA – No blood test or Vet required. Do it yourself simple mouth swab.
* = AAA - Blood test by vet. Cost will vary depending on Vet charge. Example only.
** = AABA – Not required. DNA recorded replaces certification.
** = AAA – Cost will vary depending on Vet charge. Example only.
# = AABA – Standard cost. Express service available at $ 66.00
Jack, horrified at the cost difference, turns to Jill, “ I had no idea Jill” he pleads pathetically.
“ We are spending so much money on fees, surely it does not cost that much to provide such simple
services, does it ?”
“ Well it certainly should not” exclaims Jill.
“ But in addition to those fees” asks Jack. “What are the benefits we would get from joining AABA at
a lower cost?”
Jill calmly explains the other benefits to Jack.
“Jack, take for example that we can advertise our alpaca fleeces for sale, on the AABA Market. As
members, this is a free service, no cost to insert the ads which last all year long and no commission
payable on whatever we sell.”
“ Really?” gasps Jack.
“What’s more, we can solve the problem of that female. We know she was registered with the AAA
and we have proof of purchase” laments Jill, clearly upset that the registration has not been
transferred. “At least AABA will let us register her on the AAR, and for only $ 2.20 at the moment”
“Also Jack, we would be PART of the association. We can ask questions and get real answers. We can
even complain on the AABA Forum about management issues and not have to worry about our
questions being removed from the site. Other members can talk to us freely.”
“Don’t you see Jack, this is OUR association and we with other members can tell the elected
committee to do what we want, not what they might think is in our best interests”.
“Ah! True democracy” sighs Jack.
“Exactly darling, but wait, there’s more” says Jill, admiring the steak knives on the dining table.
“We get real proof of parentage and progeny with AABA’s revolutionary DNA testing which can
improve the value of our sale animals.”
“Yeah, you’re right” says Jack. “At least our customers know they are getting progeny sired by our
stud male and not that mongrel next door that keeps jumping the fence!”
“ What is the point in paying all that extra for Certification and DNA recording if it doesn’t even
prove parentage of the progeny ?” he adds.
“ Exactly Jack” replies Jill, “and what’s more, the AAA does not even provide DNA tests for females,
how can you possibly prove who the cria’s parents really are ?”
“Well, that does it” shouts Jack, pounding the table, knocking over his glass of……….. “ We can save
a lot of money each year simply by joining AABA”. “That’s money we can use for extra feed!”
“There is nothing more to discuss” exclaims Jack proudly “We are going to join AABA right now!”
“You silly boy Jack” moans Jill. “I did it yesterday using the application form that arrived with the
latest Alpacas on the Move magazine”.
“ The decision was so obvious; you don’t think I needed YOU to decide !”
“And Jack” gloats Jill, “By joining now, before 30th June, I have saved us even more than what I
showed you”.
“Registering our animals now means that we only pay $ 2.20 for each. I showed you the future price
of $ 11.00 which is on special at the moment at only $ 2.20. That means with AABA, the fees in our
first year for the 20 females are only $44 not $ 220 and only $ 2.20 for the male instead of $ 11.00 !”
“ So there, Jack” boasts Jill. “ I have just saved us an extra $ 184.80 by making the decision for us.”
“ I think I need another ………” moans Jack.
Episode # 10457386 of “Jack and Jill at Blue Hills”
Tune in next week. Will Jack and Jill have only male cria ? Will Jack give up drinking? Will Jill find
true love? Will it rain ?Will Jack no longer have to fetch pails of water and fall down the hill?
Don’t miss next weeks enthralling episode.