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 A Second Source of Income, Without Giving Up the First!

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Breeding Alpacas can add a second source of income for people who don't want to give up their first! And significant tax benefits too!

Historically, alpaca production has been concentrated in the high Andes Mountains of South America where the availability of high quality pasture limits their number. Yet 99% of the world’s 3 million alpacas are still found in Peru, Chile and Bolivia.

As a result, alpaca is considered a specialty fiber with limited available supply. However, since 1984, alpacas have appeared, almost simultaneously, in countries where they had never been seen before. There is a steadily growing number of breeders entering the alpaca market in Canada, New Zealand, Australia, and the United States. Alpacas are appearing in Japan and Europe, as well. Ranches are now located in every state in the U.S., more than 4000 ranches in all, with the largest number of registered alpacas in Ohio, followed by the State of Washington, and Oregon.

Such broad-based interest usually indicates real value and potential! Unlike other investment livestock, such as llamas, emus or ostriches, a world industry for alpaca fiber already exists.

The ultimate step in evolution is a world-class alpaca fiber industry centered here in the United States. It is estimated that this will likely require several hundred thousand alpacas. In the fall of 2006, there were nearly 92,000 alpacas registered in the entire U.S., and about 6,900 in Canada. Therefore, the focus for some time to come will be on raising high quality breeding stock as a necessary intermediate step toward herds. This points out the infancy of the industry and the considerable potential for growth.