The average range of value for females is currently between $12,500 and $40,000. Females with unique attributes have sold for more. Young, unproven, high quality herd sire prospects routinely sell for between $7,500 and $25,000, and the highest quality males with unique characteristics or exceptional offspring have sold in excess of $200,000. The current record selling price was for a ½ interest that sold for $750,000 – making Legacy a $1.5 million dollar alpaca!

A wide variety of alpaca products can be purchased at wholesale prices and resold by your farm. You can also have your fleece processed into products. Profits on products can range from 20-50%.

Most alpaca ranchers readily sell the fleece for $2 to $6 an ounce to local artisans or on the Internet. Each animal will produce about four 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 and there are regional fiber processing mills.

Boarding your animals generally ranges from $2-$4 per day and includes food with supplements. Vet care, stud fees, insurance and show expenses are extra expenses. Most stud fees run from $1,500-$5,000, but the top studs in the nation command $10,000. All risk insurance generally runs about 3.25% of the value of the animal- paid annually. While insurance is not required, most new owners generally take it until they can self-insure.

Alpaca are bred on a tax deferred or compounding basis. As an example, you can purchase a pregnant female for $25,000. Female and male cria (babies) are produced evenly- 50/50. In this example, we show that she has a female baby. This baby can be worth at least what you paid for the mother (in general- depending on bloodlines, fleece quality and confirmation). So your investment has doubled without taxes. Taxes are paid when the animals are sold. Some breeders will exchange animals to diversity their herd-which is done without taxes.

Additional costs you might consider in your business plan-which are almost all tax deductible-are the cost of a barn, fencing, a livestock scale, fans and automatic waterers. Memberships to AOBA, ARI and any regional organization should be planned for as well as marketing expenses, costs of entering the alpaca in competitions and educational classes. Other minor charges would be cria DNA registering, small supplies and minor routine medications.