Missouri alpacas at Stone Bluff Farm

ALPACA VALUE

If you have a breeding female who produces one female alpaca every year, the value of your herd will double annually. Alpaca breeders are making good incomes from breeding and selling alpacas and from selling alpaca fleece and alpaca fleece products.

Here are some helpful observations about the investment potential of alpacas furnished by the national Alpaca Owners and Breeders Association:

SUPPLY & DEMAND MARKET

Around the world, alpacas are in strong demand, and people pay high prices for them. They are scarce, unique, and the textiles produced from their fleeces are known in the fashion centers of New York, Paris, Milan, and Tokyo. Alpacas are scarce in the US, and demand is high due to the value of the fleece and the popularity of these animals and the alpaca lifestyle. Alpaca Registry, Inc., the US alpaca registry is closed to new imports from overseas thus effectively sheltering and protecting the US alpaca market.

As of mid 2006, there are a little over 85,000 registered alpacas in the US.

Supply will continue to be limited in the near future for a number of reasons:

• Alpacas reproduce slowly. A female generally breeds for the first time between 18-24 months of age, is pregnant for 11-12 months, and almost always only has one cria per year.
• Many breeders retain their offspring to build their herds
• The limited size of the national herds in each country outside of South America will restrain growth to a small degree.
• The U.S. alpaca registry is closed to further importation to protect our national herd, which will further moderate US herd growth.

Meanwhile, demand for alpacas has increased dramatically every year since their introduction outside of South America (1984). Not only are there more breeders entering the alpaca market each year in established countries such as Canada, New Zealand, Australia and the US, but there are more countries worldwide also actively establishing alpaca herds. This growth is sure to continue as the alpaca gains international recognition.

TAX ADVANTAGES

There are excellent profit opportunities and tax advantages available to alpaca breeders. The major tax advantages of alpaca ownership include the employment of depreciation, capital gains treatment, and if you are an active hands-on owner, the benefit of off-setting your ordinary income from other sources with expenses from your ranching business.

For an extensive description of alpaca values, methods of financing, and the alpaca market, visit alpacainfo.com.

For a brochure on alpaca investment potential, please fill out our information request form.