| What are alpacas? |
An alpaca is a wonderfully fleeced animal whose color range includes white, black, gray, brown, and many colors in between. Alpacas originated in the mountainous regions of Peru, Chile and Bolivia over 6,000 years ago. They are thought to be descendants of a similar animal called a vicuna. The ancient Inca tribes began specialized breeding around 500-BC to produce specific fleece characteristics and color. Physiologically, the alpaca is cousin to the llama, but is smaller, and has finer fleece characteristics. On average, an alpaca weighs around 150-165 pounds, and is about five feet tall at the head. They are gentle animals that generally accept children very easily. An alpaca has very few defenses, so they tend to shy away from threats. However, like most animals, if you pay attention to them, alpacas can enjoy being around humans. |
| What is a camelid? |
Camelid (ca-mel-id) is a group term for alpacas, llamas, guanacos, vicunas and camels. |
| Are there different kinds of alpacas? |
Alpacas consist of two distinctive breeds, each with a unique fiber type.
The Huacaya (“wa-KI-ya”) type is more prevalent and has a fluffy “teddy bear” fleece appearance.
The Suri (“SIR-ee”) type has a unique “dreadlock” fleece quality, with the fiber handing alongside the body.
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| Who buys Alpacas? |
Breeders come from many walks of life. Young couples with children might raise a few. Retired couples, who have raised their kids, sold their business and retired to the country are often owners. Several breeders are veterinarians who have found the ownership of alpacas to be more rewarding than practicing veterinary medicine. City dwellers who have discovered the option of boarding alpacas, thereby giving them an operational alpaca business while still retaining an urban career. The family whose members include a hand-spinner might own two or three for fiber production. A large number of breeders are working couples who tend to their herd in the evening after work. For all owners, alpacas offer a great way to diversify their financial portfolio with a commodity that is both rare and in demand worldwide. |
| What do alpacas eat? |
The primary thing alpacas eat is plain grass or hay. One 60-pound bale of hay will usually feed an alpaca for about two weeks (depending on weather conditions and time of the year.) Alpaca owners also give their alpacas some type of supplemental feed. Additionally, all alpacas should have access to free-choice salts and trace minerals. |
| What kind of care is needed for alpacas? |
While the maintenance can vary with personal preferences, alpacas generally do not require a tremendous amount of daily care. Routine daily care will include feeding, watering and manure maintenance. Monthly veterinary care will include general worming and possibly nail trimming. |
| How strong is the market for alpacas? |
Currently the market is strong, there are many new breeders in the industry. There are alpacas in all fifty states and over 130 alpaca farms in Virginia alone. You can get the growth data per state, from the AOBA web site. As you understand the many different aspects in owning alpacas, hopefully that will help you better understand the market. The market has been restricted by lack of supply and it will continue because alpacas reproduce slowly, many breeders retain their offspring to build their herds, embryo transplant is not feasible, the U.S. alpaca registry is closed to further importations. |
| Can you make money with alpacas? |
The short answer is complicated. People breed and raise alpacas, and sell the animals and/or their offspring to other breeders and to people outside the industry who are interested in getting involved, either as active breeders, or passive investors. In addition to selling the animals themselves, there are ancillary services that can be sources of revenue, including stud service, agisting (boarding), and brokering (representing other breeders in the sale of animals).
But, this industry is not as simple as merely putting a male and female together and 11.5 months later you have an instant return on investment. We are not aware of any business that does not require some amount of careful and thoughtful strategic and tactical planning, a deliberate approach, sound execution, and some level of capital investment, in order to make money. Naturally, there are varying intensities of demand for each of these components, but if making money is the objective of raising alpacas, you may rest assured that there will be some requirement for each of these components. |
| Are there tax advantages to owning Alpacas? |
Yes. As a breeder you can depreciate a male or female alpaca for breeding purposes over a five-year period. Furthermore, the first year that the capitol asset is acquired, there is a maximum of $18,500 which can be used as a business expense item. Income derived from the sale of capitol assets is usually taxed at a lower rate than that of income derived from other sources, such as regular earnings. Any expenses, which you incur such as veterinary care, feed bills, or any other costs associated with the raising of your alpacas are deductible. As an active breeder, there is also the ability to depreciate tangible property, such as barns, fences and breeding stock. Section 179 of the tax code currently allows for the deduction of a capital asset up to $100,000 in the first year the asset is acquired. Capital gains can be available on the sale of breeding animals and their offspring. You need to consult a tax advisor for specifics as they relate to you. |
| What does “agisting” mean? |
The term “agisting” is alpaca-speak for “boarding.” Many alpaca farms or ranches offer agisting services to owners of alpacas who are unable to keep their animals themselves. Fees are assessed per animal on a daily or monthly rate, and will have various services included. Be sure to confirm the exact services that will be included whenever you consider agisting services.
It goes without saying that you will also want to assess the overall condition of the ranch where you are considering agisting, as well as the condition of the other animals that are there. These will be a good indication of the care your animals will receive, as it is unlikely that your animals will receive better care or more attention than those of the owner of the farm or ranch. |
| Do alpacas need a lot of room? |
You can comfortably keep five alpacas on one acre, however some farms have more than that. Keeping the pasture clean of feces is important, and since they use one or two communal dung piles, this is an easy chore. A three-sided shelter for them to get in out of inclimate weather is necessary also. Because of their two-toed, padded feet, they don't tear up the ground as cloven hoofed animals do, and with their four bottom teeth, and soft upper pallet they utilize a very agile upper lip to simply 'cut off' the grass they forage, not pulling it from the roots. Alpacas are one of the most environmentally friendly animals known.
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Any questions that you would like to ask that didn't get answered here? Email us at renee@prokops.com.