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Alpacas are known as the World’s Finest Livestock Investment!
Alpacas produce a premium fiber in 22 vibrant colors, the demand for which
is ever increasing.
Annual fiber yields vary from about five pounds from a single female to
a reported thirteen pounds from a larger male.
Many
alpaca farms have small gift shops offering sweaters, hats, gloves, as
well as yarn, rovings, and raw fleece. Due to a high demand for these
beautiful animals, it is common for a female offspring of an alpaca to
sell for the same price or more than an investor paid for the dam. Returns
of 30% to 74% are not uncommon in the alpaca industry.
The current market prices for alpacas in America are:
| Bred females $10,000 to $45,000 | |
| Breeding males $15,000 to $50,000. On occasion, Herdsires have reached the $100,000 to $250,000 mark at auction. | |
| Pet quality males from $1,000 |
Alpaca prices will vary with
age, health, fiber quality, size, color, conformation and reproductive
history.
Regulations preventing or limiting alpaca exports from Chile, Peru and
Bolivia have contributed to the shortage of breeding stock. Because alpaca
females have one cria a year, the National herd will continue to grow
at a slow rate.
Not to be overlooked as a very important aspect of raising alpacas are the great tax benefits that Uncle Sam provides. (It is important that you consult your own tax advisor as it pertains to your specific tax situation).
 |
An alpaca
can typically be depreciated over a five-year span or 20% per year
and, in addition, Section 179 of the tax code currently allows for
the deduction of a capital asset up to $100,000 in the first year
the asset is acquired. Capital gains can be available on the sale
of breeding animals and their offspring. Other tangible property such as barns, fences, trailers, etc are also depreciable assets and can also help shelter current cash flow from tax. |
Certain expenses are also
tax deductible such as feed, veterinarian care, supplies, etc.
Add to all of this that alpacas are 100% insurable!
If you continue to investigate alpaca production as a business opportunity,
it’s essential that you are able to answer the following questions
concerning the production and marketing of alpacas, as well as the management
of such an enterprise.
| Are you prepared to learn all you can about alpaca production and marketing, visit existing operations, join the industry associations, attend workshops and read all you can about production and marketing? | |
| Have you clearly defined the market(s) and the buyers that you will be marketing to? | |
| Have you clearly defined the production practices you need to implement in order to produce the quality of product required by your markets? | |
| Have you clearly defined the marketing activities required in order to market your product to the specific market segment mentioned above? | |
| Are you aware of the amount of time you have to devote to continuously marketing your alpacas and improving your production performance? | |
| Are you aware of the resources required to establish an alpaca enterprise? | |
| Have you carefully analyzed the returns and cash flows you can expect from an alpaca operation? | |
| Are you prepared to manage the risks associated with investing in alpaca and operating an alpaca enterprise? |
Please feel free to contact
us. Let us help you answer these important questions!