Wow ! Where do we start. There is much to say here. In addition to the pure pleasure of the ranching lifestyle, we have the benefit of numerous financial rewards.

In the mid 1980’s the importation of alpacas was halted in order to promote the growth of our domestic herd. At that time, our herdsize was approximately 15,000 nationwide. In 1989, the Alpaca Registry was formed. ARI tracks the growth of our domestic herd and also monitors breedline genetics to uphold the highest breeding standards and herd health. In 2007, our domestic herd rolled over 100,000
and we still have a long way to go.

Worldwide, alpaca fiber is highly regarded. High grade fiber products are considered luxurious and are in great demand. The U.S. Alpaca fiber industry is far behind and still trying to grow and consolidate. The growth of our domestic herd goes hand in hand with the growth of our fiber industry. This is no doubt a win win situation for all.

We will discuss the financial aspects as they apply to us here, but we strongly suggest that you consult with your financial advisor to ensure this investment works for you !

Breeding and Sales

Pricing on alpacas has changed quite a bit since the mid 80’s. Our herdsize at the time of the import ban placed a high premium on the cost per alpaca. Not so today. Todays herdsize has created a stable and affordable price structure. Breed quality males and females range in price from 8 to 20 thousand dollars. Exceptional breed stock can fetch up to 40 thousand. Non breeding males ( geldings ) range from 8 to
12 hundred dollars.

The basic starter package consists of two bred females or a bred female with a gelding for company. Your herd will increase annually by the number of females you have. Two females will bring you two crias. Female crias can generally breed within 16 months. Males take a bit longer at two and a half years. Before you know it, your herd and investment grows to the point where sales will start generating income.

As your herd begins to grow, it is in your best interest to breed with the highest quality males possible. Breeding fees can range anywhere from 5 hundred to 5 thousand dollars. High quality bloodlines will improve the quality of your herd in time. High quality stock translates into greater returns on your initial investment.

Fiber, Fiber, Fiber.

The options we have with shorn fiber are too numerous to mention here. In this case, you will have to do some homework. The internet has thousands of websites relating to alpaca fiber. Answers to all your questions can be found. Basically, the fiber from your stock is marketable. It can be sold raw to spinners and turned into yarn. There are private fiber mills which will take your fiber and make anything from hats to socks, blankets, sweaters and almost anything you can think of. There is also the North American Fiber Cooperative ( afnca.com ). The fiber co-op takes in your fiber and, in turn, makes all their fiber products available to you at wholesale prices. You must be a member of the co-op to take advantage of this program. Many ranches supplement their income by creating ranch stores on site selling various products and fiber.

Tax Advantages

Raising alpacas at your ranch for profit allows for attractive tax advantages. The agricultural tax code will apply and all the expenses attributed to the business venture can be written off against your income. Expenses such as feed, vet care and all expenses associated with the operation of the ranch may be written off. Depreciation may also be applied to breed stock, barns, enclosures and fencing.
For more formation please visit the AOBA website at alpcacainfo.com. The financial topics section has excellent information regarding all the financial aspects of the alpaca industry.