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 A Typical Alpaca-Ranching Investment

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There are many financial scenarios for beginning alpaca-ranching. However, the one described here would not be unusual.

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.

Initial Cost - $8-$10,000
for a combination of two pregnant females and/or yearling females of high quality(does not include land, fencing, facilities etc.)

  • Year II - expenses + $5-$10,000 depreciation.
  • Year III and on - expenses + remaining depreciable costs e.g. alpacas, home office, truck, barn, fence, computer, camera, etc.

    Key Ingredients For Success - We have been very successful as a medium-sized ranch, however some others have not. Discussions with many newcomers indicate the following as important ingredients for fiscal success.
    • Love of the animals such that routine care is smoothly done by the owners without employees.
    • Acknowledging the business aspect of alpaca-ranching and following a simple marketing and sales plan.
    • Being in a financial position to take full advantage of the many tax benefits.
    • Luck - the birth of females facilitates sales and herd growth. While the odds are 50/50 for males to females, at times one or the other can seem to predominate and thus slow or speed the process.
  • At the beginning, you won't need your own herd sire, but at some point you will want to invest in a top quality male. These males will be four years old in 2013 and will be looking forward to meeting your ladies.