An Alpaca rancher with a small herd on a small acreage can expect to harvest his animals' fleece and sell their offspring profitably. The entire investment can be insured. Alpacas are easy to raise, very hardy and require minimal shelter. The entire family can participate in their care. Alpacas are respectful of children and value a peaceful co-existence with humans.

The value of Alpaca fleece is the economic underpinning of the future market for Alpacas. The herds found outside of South America are not currently large enough to justify industrial processing of the fleece they produce . For the foreseeable future, domestic fiber will be sold to the cottage industries which revolve around hand spinning and weaving. Most Alpaca ranchers readily sell their fleece for $2 to $5 an ounce to local artisans. Each animal will produce five to eight pounds of fleece a year.

The current Alpaca industry is based on the sale of breeding stock, which demands premium prices, selling for about $20,000 to $25,000 per breeding pair. Each pair is made up of one male and one female. Female Alpacas begin breeding at between 14 and 18 months of age; males breed beginning at about three years. The females produce approximately one baby per year during a reproductive life of about 20 years.

Alpaca Values

The factors which influence individual Alpaca prices include color, conformation, fleece quality and quantity, age and sex. Females sell for more money on average than males, but herd sire quality males command the highest individual prices.

Breeders often prefer one Alpaca color over another, with the rarest colors demanding the highest prices. However, the parents' color does not necessarily guarantee a cria of the same color. Correct, well- conformed Alpacas sell for higher prices. Fleece density, uniformity and fineness also affect the animal's price.

The range of value for females is currently between $10,000 and $30,000. Many have sold for more than $30,000.

Males have a wider price differential. Herd sire quality males have sold in excess of $75,000 and are often insured for more than $100,000. Young, high quality stud prospects routinely sell for between $7,500 and $25,000, unproven. The financial analysis found in the AOBA brochure incorporates animal prices which a buyer can expect to pay for good quality, sound breeding stock.

Alpacas are much like diamonds. The market pays a premium for brilliantly colored, flawless examples of the breed.

Capital Requirements for Alpaca Investing

Many breeders start investing in Alpacas by purchasing one pair of animals. This requires an initial investment of approximately $20,000. Purchasing several females and one or two males requires an investment of $60,000 or $70,000.

Deciding whether you will boarder your animals with another breeder or actively manage your own herd will determine how much capital you need. A small barn or shelter, built especially to house 15 to 20 Alpacas, might cost about $10,000 to $15,000 if you contract for its construction. Fencing could add several thousand more dollars to your budget.

If you manage the herd yourself, you'll require an inventory of halters, shears, toenail clippers, lead ropes and other miscellaneous gear. These items would probably add $500 to your initial costs. Insurance is a consideration, and a year's supply of feed and grain will probably be required. If a person were to begin raising Alpacas at his own ranch, a typical start-up budget might look like this:

• Acquisition of two pregnant females $34,000 (can be financed)
  
• Insurance, one year $1,000
  
• Equipment $500
  
• Small barn and fences $12,500
  
• One year's feed $500
  
• Miscellaneous reserve $1,000

TOTAL: $49,500

Passive Investment Start Up Budget

If you plan to board your animals, a first year or start-up budget might look like this:

• Acquisition of two pregnant females $34,000
  
• Insurance, one year $1000.
  
• Boarder fees, two Alpacas one year $1,460.

TOTAL: $36,460

For more information , please feel free to contact us.