Investing in Alpacas

Let us introduce you to the world’s finest livestock investment. The ancient Incas realized their value, and built an entire civilization around these fabulous animals. It is now possible for you and your family to create a secure financial future through alpaca ownership.

Even an alpaca rancher with a small herd and limited acreage can expect to sell his animals fleece and offspring profitably. The value of the fleece is the basis for this emerging industry. There is a co-op currently available to process alpaca fiber and domestic fiber is often sold to cottage industries for hand spinning and weaving. Currently most alpaca ranchers can sell their fiber for $3 to $6 an ounce. Typically an alpaca will produce between 5 to 8 lbs. of fiber every year. I know of one that has produced as much as 15 lbs, however this is an exception.

While the future of the alpacas industry will be in fiber production, the current U.S. market is driven by the sale of quality breeding stock. Female alpacas can begin breeding at between 14 and 20 months of age. Males generally begin breeding between 2 to 3 years of age. Females have a reproductive life span of 15 to 20 years and can produce one baby, (called a cria), every year. The gestation period is approximately 11 ½ months, and they can be rebred 17 to 21 days after giving birth.

Many factors influence prices, including fleece quality and quantity, color, conformation, age and sex . While females generally sell for more than males, Herdsire quality males (studs) command the highest individual prices. The value range for females is currently between $12,000 and $20,000. Exceptional females have sold for as much as $70,000. Young unproven, high quality stud prospects (Jr. Herdsire) routinely sell for between $8,000 and $25,000. The highest quality males with unique characteristics or exceptional offspring have sold for more than $250,000.

There are several ways to enter the world of alpacas. First, determine your goals. Do you want an inexpensive pair of gelded males, which could be used to produce fiber for your individual spinning and weaving, or as pets for you and your family? Or are you going to be a breeder? Do you want a hands on business or purely an investment business? Do you own acreage, or are you a city slicker? Are you looking for current financial returns or do you want to build a herd which will allow you to retire on your very own ranch?

If you currently own or have access to a small amount of acreage, you can enjoy a very serene lifestyle tending your own herd . You qualify for many tax advantages and build tax-deferred wealth. But what happens when you fall in love with these animals and are not in position to care for them? All is not lost!! You can still own alpacas, visit them regularly while someone else tends to their daily needs. This is called Agistment. You are still building tax-deferred wealth, and can claim the cost associated with your investment against your current income. We have owners who board their animals with us, and rarely see them. Others who board their animals with us, visit and assist in their care as often as they can.

The U. S. Alpaca Industry will be focused on breeding stock for many years to come. Due to the small size of the American herd, the inability to import alpacas and their slow reproductive rate, the supply is limited. On the flip-side the demand for these animals continues to grow. The positive attributes of the alpaca are the reason for such strong growth. They are Earth-friendly, easy and safe to handle. They require minimal feed, shelter, fencing or veterinarian cost. They produce a cash crop of fiber each year. They are fully insurable unlike stocks. They have many tax advantages, including depreciation, expense deductions, and deferred wealth accumulation. Yes, Alpacas are truly the world’s finest livestock investment.

Currently there are only about 100,000 alpacas in the United States, with the average ranch consisting of between 8 to 10 alpacas. In order to meet the growing demand for this luxurious fiber, the need for expansion is great. So now is the time to begin your research, whether you want a small herd of 3 or 4 alpacas, or eventually own a large ranch of 100 or more. Don’t forget about the possibility of agisting. Board your alpacas on an established ranch, either temporarily while you prepare your facilities, or permanently if you are only looking for an investment. Remember to check out the tax advantages with a CPA to see how they fit with your current situation.

Plan a visit to our ranch soon. We welcome your calls and inquiries. We would love to speak to you, answer your questions, and introduce you to our alpacas and more importantly the Alpaca Lifestyle.