Investment

Not only are alpacas wonderful to have around,
owning them is an excellent investment.

One female, with a lifespan of 20 yrs., will produce approximately 12 crias (offspring). The sale of just one female should recover nearly all your investment, while the sale of the remaining 11 produces an outstanding return. If the females are retained and start producing offspring, the principle of compounding comes into play.

Juvenile males with the potential to become herd sires sell higher then pet quality males. Exceptional, proven males, with outstanding offspring, conformation, and fleece quality will bring a much highter price. Often packages of several animals are available for less money.

Since the Alpaca Registry has closed, stemming imports from South America, demand for animals in the United States and Canada has resulted in steadily escalating prices.

A secondary source of income comes from the sale of the fleece. Stronger and softer than wool, alpaca yarn is on a par with cashmere. An animal produces between 3 and 5 lbs. of fleece per year, and many breeders have sold their fleece to handicrafters for $2 to $5 an ounce.

The animals, farm buildings, and equipment can be depreciated, while other expenses are deductible. Raising alpacas can have other tax advantages, and family involvement can result in advantageous estate planning benefits.

The expenses associated with raising alpacas are surprisingly low. Minimal shelter and fencing are required, and 4 to 7 animals can live comfortably on one acre. Vet fees are low and feces production, restrained. Easy and inexpensive to transport, they can be insured for inexpensive rates.

If you wish to own the animals and do not have a farm, you may board them at an established farm where their care will be provided.