Investing in Alpacas

With the registered North American alpaca population currently numbering approximately 30,000, alpacas remain a very rare and valuable commodity. While the value of the alpaca's fiber is the economic underpinning on which the future of the industry is based, the current market is really grounded in the sale of high quality breeding stock.

Female alpacas routinely sell for $20,000 to $30,000, and those of rare or award-winning parentage sell for even more. Young, unproven males are often sold as youngsters for approximately $10,000 with their prices going up progressively as they prove themselves out, either reproductively, in the show ring, or both.

Proven, top-flight Herdsires routinely bring $50,000 or more. The closer the alpaca is to the accepted standard - correct conformation, with dense, fine, uniform fiber - the higher the price it will command in the marketplace. The bottom line is that the market for high quality breeding stock is very strong and is expected to remain strong for years to come.

There are many ways to get into the alpaca business: you could ask ten different breeders how they got started and you might well get ten completely different stories. Some folks start with just a couple of females and a companion (usually a gelded male). Others jump right in with a herd of ten females and a stud. Many smaller breeders also choose to sell other people's animals on consignment in order to generate revenue while they slowly build their own herd through breeding. In all cases, the fundamental key to success is the breeding of high quality alpacas.

While alpacas are not a risk-free investment, they can be fully insured against loss from theft and death. Even the small breeder has an opportunity to achieve success in the business. It is a home-based business that can be done part-time, after work, and can involve the whole family. Need more evidence? In a recent survey of its membership, the Alpaca Owners & Breeders Association (AOBA) found that more than 80% of all alpaca owners in the US have 10 animals or less.

Backed by a large national marketing campaign from AOBA, the demand for these gentle and intelligent creatures is growing steadily, helping those smaller breeders to succeed without having to engage themselves in advertising on a large scale. For the foreseeable future, the vast majority of the North American alpaca population will be in these small herds. The outlook for them and for alpacas as a livestock investment in general is a bright one!

^ top