Owning and Raising Alpacas

  (This Article From The Alpaca Breeders of Northern Colorado Web Site)

“Alpacas were a cherished treasure of the ancient Incan civilization and played a central role in the Incan culture that was located on the high Andean Plateau and mountains of South America. Alpacas were first imported to the United States in 1984. Alpacas are now being successfully raised and enjoyed throughout North America and abroad.

There are two types of alpacas - the Huacaya and the Suri. The life span of the alpaca is about 20 years and gestation is 11.5 months. Alpacas eat grasses and chew a cud. Adult alpacas are about 36" tall at the withers and generally weigh between 100 and 200 pounds. They are gentle and easy to handle. Alpacas don't have incisors, horns, hooves or claws. Cleanup is easy since alpacas deposit droppings in only a few places in the paddock. They require minimal fencing and can be pastured at 5 to 10 per acre.

Alpacas produce one of the world's finest and most luxurious natural fibers. It is clipped from the animal without causing it injury. Soft as cashmere and warmer, lighter and stronger than wool, it comes in more colors than any other fiber producing animal (approximately 22 basic colors with many variations and blends).This cashmere-like fleece, once reserved for Incan royalty, is now enjoyed by spinners and weavers around the world.

Alpaca owners enjoy a strong and active national organization. The Alpaca Owners and Breeders Association (AOBA) with a growing number of Regional Affiliates and AOBA sanctioned national committees addressing every aspect of the industry.

The Alpaca Fiber Cooperative of North America (AFCNA) accepts fleece from its members, and turns the precious textile into quality alpaca garments and products. Members benefit from a ready outlet for their fiber, while the cooperative works to increase awareness of and demand for this every day luxury.

The Alpaca Registry (ARI) has been established to help ensure accurate records and has a state-of the-art system to document bloodlines. Alpacas must be blood typed in order to be registered. Virtually every alpaca in the U.S. is registered.”

Alpacas as a Livestock Investment

Around the world, alpacas are in strong demand. They are scarce and unique, and the textiles produced from their fleeces are coveted in the fashion centers of New York, Paris, Milan, and Tokyo. There are excellent profit opportunities and tax advantages for alpaca breeders.

Most alpaca breeders are in business for the long term, as they believe in the future of the industry. With the small number of alpacas currently available, there will be an extended and steady demand for alpaca breeding stock to continue to meet the demands of our growing industry for many years to come.

Alpacas have long been considered the aristocrat of ranch animals. But what truly makes them an excellent livestock choice is their charismatic manner—alpacas are truly a pleasure to care for. They do well on small acreage and produce a luxury product in high demand. Plus, your alpacas are 100% insurable.

• Supply and Demand
  The value of alpacas continues to grow based on the increased interest in ownership and the demand for their fiber. Supply and demand will continue to drive alpaca values.

          The supply is limited based on several factors.

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

• Return on Your Investment
  It is common for a single female offspring to sell at a price equal-to or greater than what the breeder investor paid for the dam. Returns of 30% to 70% are not uncommon in the alpaca industry. The high return is based on supply and demand and that breeders chose genetics to improve upon the dam.
   

• Alpaca Compounding
  Female alpacas generally produce one alpaca per year. The ratio of female to male is 50/50. Your female crias will be ready to breed between 14 and 18 months. Every time a female cria comes of breeding age, you are adding one more source for new animals to your herd. The larger the herd, the faster it grows—and so too does your fiber production.
   

• Tax Benefits
  A very important aspect of raising alpacas is the great tax benefits. An alpaca can typically be depreciated over five years, or 20% per year. Tax code Section 179 currently allows for the deduction of a capital asset up to $100,000 the first year the asset is acquired. The improvements made to your farm, farm equipment, the cost to care and feed alpacas, business travel, association fees and marketing-related expenses are deductions as well. Consult with a tax advisor for specifics that will relate to your situation.

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