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.
Back to: Allegheny Alpacas Home Page
To learn more, contact Jack & Jill Reinhart at:
Allegheny Alpacas
(724) 940-4045