Investing in Alpacas
Investment Qualities

An alpaca rancher with a small herd on a small acreage can expect to harvest his animals’ fleece and sell their offspring prof­itably. The value of alpaca fleece is the economic underpinning of the future market for alpacas. Breeders outside of South America are beginning to organize wool co-ops for the commercial processing of the fleece. Domestic fiber is often sold to cottage industries that revolve around hand spinning and weaving. Most alpaca ranchers readily sell their fleece for $2 to $6 an ounce to local artisans. Each animal will produce five to eight pounds of fleece a year. A North American fiber co-op, endorsed by the Alpaca Owners and Breeders Association (AOBA), provides a commercial outlet for all breeders.

The current alpaca industry is based on the sale of quality breeding stock, which demands premium prices. Female alpacas begin breeding at between 12 and 20 months of age, while males begin breeding at about three years. The females can produce approxi­mately one baby per year during a reproductive life of 15-20 years.

The factors which influence individual alpaca prices include color, conformation, fleece quality and quantity, age, and sex. Females sell for more money on average than males, but herdsire quality males demand 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. Correct, well-conformed alpacas sell for higher prices. Fleece density, uniformity and fineness also affect the animal’s price.

The range of value for females is currently between $12,500 and $40,000. Females with unique attributes have sold for more than $80,000. Young, unproven high quality stud prospects routinely sell for between $7,500 and $25,000, and the highest quality males with unique characteristics or exceptional offspring on the ground have sold in excess of $575,000. Many breeders start with several breeding age females and perhaps one male. Other new breeders may elect to start with several young animals or a breeding pair. There is an approach suitable for your level of interest and finan­cial position. The financial analysis found in this brochure incor­porates animal prices that a buyer can expect to pay for good quality, sound breeding stock. Alpacas are much like diamonds. The market pays a premium for flawless examples of the breed.