Investment Capabilities

The profitability and income an alpaca rancher earns through raising these unique animals is three pronged. Through the harvesting of his alpacas’ fleece, the selling of alpacas/crias, and the selling of breedings to his herdsires, an alpaca rancher can make the joy of raising alpacas truly a smart investment opportunity.

Although every alpaca rancher may have their own opinion on the type of alpaca to raise, the factors of color and their breeding direction are main focuses throughout the industry. Another factor, which we believe will be a decisive one for the alpaca market, is through the value of alpaca fleece.  

Each animal produces five to eight pounds of fleece per year. Alpaca ranchers outside of South America are using several different outlets for the selling of raw fiber. One method is through the use of fiber co-ops that commercially process fleece, including The North American Fiber Co-Op, which is endorsed by the Alpaca Owners and Breeders Association. Fiber is also sold to cottage industries, which mainly revolves around hand spinning and weaving. The going rate that alpaca ranchers are selling their raw fiber is $2 to $6 per ounce.

The current alpaca industry is based largely on the sale of quality breeding stock, which at this point in time commands prices at a premium. Some of the factors which influence price include color, sex, conformation, fleece quality, and age. The density, uniformity, and fineness of the fiber also can affect the price of an alpaca. Often a breeder will have a color preference, which will direct their purchase; however, the dam or sire's color will not offer any guarantees to the final color of the cria.

Strong breeding females sell for more than males on average; however, a quality herdsire male can demand the highest individual prices. Females are currently being sold for between $12,000 and $40,000, with those with unique attributes such as rare color and higher fiber quality going for more. Males who are unproven range in the selling price of $7,500 to $25,000, whereas herdsires of the highest quality, with exceptional offspring on the ground, have sold in excess of $200,000.

For alpaca ranchers without a herdsire, who are looking for diversification of blood lines or for a unique quality in future crias, the ability to purchase breedings at other alpaca farms is a way a farm can raise the level of quality of their alpacas without having to make a major animal purchase. For the farm making their herdsires available this is a twofold benefit both in promoting their farm and providing added income.

 

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To learn more, contact Jack & Jill Reinhart at:

Allegheny Alpacas 

(724) 940-4045

info@allalpacas.com