About Alpacas

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 lifespan 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. 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.

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 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 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.

Some Financial Information

An alpaca rancher with a small herd on a small acreage can expect to harvest his animals' fleeces and sell their offspring profitably. The value of alpaca fleece and finished products made from that fleece is the economic underpinning of the future market for alpacas. Breeders outside of South America are beginning to organize fiber co-ops for the commercial processing of the fleece. Domestic fiber is often sold to cottage industries that revolve around hand spinning and weaving. Each animal will produce around three to ten pounds of fleece a year. Alpaca ranchers sell their fleece in a variety of ways including raw fiber, washed and carded fiber, yarns, and finished products, with lucrative margins. Profits or fiber production vary based on each farm's model for fiber sales.

The current alpaca industry is based on the sale quality breeding stock, which commands premium prices. Female alpacas usually begin breeding at between 15 months and 18 months of age, while most males can successfully impregnate (or "settle") a female at about three years. The females produce one baby per year (twins are uncommon) during a reproductive life about 10-12 years.

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. There are many accepted theories regarding alpaca color heritability, and more research is needed to further our understanding of this issue. 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.

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. Alpacas are much like diamonds. The market pays a premium for the finest examples of the breed, and a beauty is also in the eye of the beholder.

Another benefit of owning alpacas relates to the concept of compounding. Savings accounts earn interest, which if left in the account, adds to the principal. The increased principal earns additional interest, thereby compounding the investor's return. Alpaca breeders also witness the effects of compounding over time. Alpacas reproduce almost every year, and about one-half of their babies are females. When you retain the off-spring in your herd, they begin producing babies. This is referred to as "alpaca compounding."

Tax-deferred wealth building is another "alpaca advantage". As your herd grows, you postpone paying income tax on its increasing value until such time as you begin selling the offspring. Most breeders elect to sell all or some of the annual offspring production for practical reasons, such as recovering their initial cash flow, acreage and building limitations, and time constraints.

Alpacas are also fully insurable against theft and mortality. Insurance can be purchased for your stock regardless of age. Average insurance rates are 3.25% of the value of the animal, or $325 for every $10,000 of insurance.

To read more about the financial aspects of alpaca ownership, click here.