AlpacaPedia

Alpaca Related Basic Education and Information

Created and maintained by Dianna Jordan, Alpacas of Somerset Farm

~ About Alpacas ~

What are these captivating animals that have recently become the fastest growing segment of the North American livestock business?  Where did they come from?  What do you do with them?  What’s the appeal?  Who owns them?  Why do they own them?  In other words, what’s the deal with alpacas?

Alpacas have coexisted with humankind for thousands of years. The Incan civilization of the Andes Mountains in Peru elevated the alpaca to a central place in their society. The imperial Incas clothed themselves in garments made from alpaca and many of their religious ceremonies involved alpacas. Museums throughout the Americas display textiles made from alpaca fiber.

Alpacas produce one of the world's finest and most luxurious natural fibers.  Their fiber 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 and can be found in many "high-end" garments.

Fast Facts

• Alpacas were first imported to the United States in 1984 and 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 by young and old alike.
• Alpacas don't have incisors, horns, hooves or claws.
• Clean-up 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.

The Earth-Friendly Alpaca

Alpacas have been domesticated for more than 5,000 years. They are one of Mother Nature's favorite farm animals. They are sensitive to their environment in every respect. The following physical attributes allow alpacas to maintain their harmony with our Mother Earth.

• The alpaca's feet are padded and they leave even the most delicate terrain undamaged as it browses on native grasses.
• The alpaca is a modified ruminant with a three-compartment stomach. It converts grass and hay to energy very efficiently, eating less than other farm animals.
• Its camelid ancestry allows the alpaca to thrive without consuming very much water, although an abundant, fresh water supply is necessary.
• The alpaca does not usually eat or destroy trees, preferring tender grasses, which it does not pull up by the roots.
• South American Indians use alpaca dung for fuel and gardeners find the alpaca's rich fertilizer perfect for growing fruits and vegetables.
• A herd of alpacas consolidates its feces in one or two spots in the pasture, thereby controlling the spread of parasites, and making it easy to collect and compost for fertilizer.

• An alpaca produces enough fleece each year to create several soft, warm sweaters for its owners comfort. This is the alpaca's way of contributing to community energy conservation efforts.

Alpaca breeders come from all walks of life

For some, alpacas are a primary source of income, for others, alpacas are a primary source of pleasure. Young couples with children might own three or four Alpacas and enjoy caring for them. Retired couples, who have raised their children, sold their businesses, and retired to the country, are often owners. The family whose members include a hand-spinner might own two or three animals for fiber production. Many herds are owned by families, where one spouse has a city job, and the alpaca business is managed by the other spouse on their small acreage in the country. Many breeders are working couples who tend their herd in the evening after work.

Alpacas as investments

For investors, alpacas offer a great way to diversify their investment portfolio with a commodity, fiber, that is both rare and in demand worldwide. Most herds start out small and evolve to the size which fits the breeder's farm and financial goals.

The Tax Advantages of Alpaca Ownership

Raising alpacas on your own farm, in the hands-on fashion, can offer tax advantages. If alpacas are actively raised for profit, all the attributable expenses can be written off against your income. Expenses include not only feed, fertilizer, veterinarian care, travel, farm labor, marketing accounting and attorney fees, as well as depreciation of such tangible property as breeding stock, barns and fences.

Alpaca breeding can allow tax-deferred wealth building. A small farmer or investor can purchase several Alpacas and then allow the herd to grow over time without paying income tax on its increased size and value.

ALWAYS CHECK WITH YOUR ACCOUNTANT OR FINANCIAL ADVISOR WHEN CONSIDERING THE ADVANTAGES OF ANY INVESTMENT OPPORTUNITY.

The Initial Investment

Alpacas are an investment and like any other investment there are associated costs and risks.

Factors that influence individual alpaca prices include color, conformation, fleece quality and quantity, age, and gender. Females sell for more money on average than males, but herd sire quality males have historically commanded the highest individual prices. Breeders often prefer one alpaca color to another, however the parents' color does not necessarily guarantee a cria of the same color. Of more importance to most breeders is the overall physical soundness, or "conformation" of the animal. In addition to color, fleece, density, uniformity, fineness, luster and staple length will also affect value. Well-conformed alpacas with superior fleece characteristics sell for higher prices.

All that being said, the amount you choose to spend will be determined by your long-term goals and what you are willing to invest as working capital. A proven rule-of-thumb is to choose "Quality not Quantity."

This information was adapted from publications of the AOBA (Alpaca Owners and Breeders Association).

When talking about investing in alpacas the initial conversations usually center on the purchase price. it has been my observation and experience that there are at least four investment considerations Financial, Emotional, Time, and Continuing Education.

Four Investment Considerations

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