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Investment Potential

Are they like emus?  How much are alpacas worth? Why do they cost so much? Do I need land to invest in alpacas? What does it take to get started? Are there tax advantages?

Emus are flightless birds. Alpacas are livestock.  To harvest an emu, the owner has to butcher it.  To harvest alpaca fiber, the owner shears it once a year.  For the emu thing to work, consumers had to change their eating habits.  For alpaca demand to hold steady, people just have to continue to enjoy soft, warm clothing and blankets.  No, we don't think there is any similarity between emus and alpacas.
Expect to pay $10,000-$20,000 for a bred female that is of solid breeding quality. Males are all over the place, as they are for many species.  Top-quality herd sires have sold for well into six figures. Many owners, though, will sell decent males for $1,500 or even less to help move their males.
Alpacas reproduce very slowly.  Gestation is about 11-1/2 months.  There are only about 100,000 alpacas in North America.  If they were all sheared at once, their fiber would keep a commercial mill busy for only a few weeks.  Because of this gap between supply and demand, the value of alpacas is expected to hold constant for the foreseeable future.
No, you don't need land to invest in alpacas.  Curly Eye will board and care for your animals--with visiting rights, of course--at prices that will still allow a good return on your investment.  Ask about our Crias for College investment program.
If you do decide to keep your alpacas yourself, you can keep 5-10 animals on an acre of pasture, depending on local conditions.  The Alpaca Owners and Breeders Association estimates that you'll need about $55,000 to get started with animals (one bred female and one maiden), a small barn, fencing, veterinary expenses, feed and other supplies for the first year.
Like any other investment, alpacas carry risks.  But most other investments are not insurable for 100% of their value as alpacas are.
Many of the expenses involved in keeping and raising alpacas can offer tax advantages. See your tax advisor about this.
 

 

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