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Introduction to the Financial Aspects of Alpacas

Why do people in so many countries call alpacas “The world’s finest livestock business”? For any business asset to be valuable, it must possess certain qualities that make it desirable. Gold is scarce, real estate provides shelter, oil produces energy, bonds earn interest, stocks are supposed to increase in value, and diamonds symbolize love. Alpacas share many of these same attributes.

Around the world, alpacas are in strong demand, and people pay high prices for them. They are scarce, unique, and the textiles produced from their fleeces are known in the fashion centers of New York, Paris, Milan, and Tokyo. There are excellent profit opportunities and tax advantages available to alpaca breeders. Historically, the alpacas’ value has sustained ancient cultures, such as the Incas of Peru. Today, alpacas represent the primary source of income for millions of South Americans. History has validated the value of the alpaca. Livestock has been a traditional representation of wealth for many cultures around the world, long before financial stocks were sold on the New York Stock Exchange. The richest families of ancient times counted their wealth by the size of their flocks of sheep or herds of cattle. Today, wealth as a result of livestock ownership is not as common, but opportunities do exist for profitable farms and ranches. Tending to a graceful herd of alpacas can be an exciting way to earn a source of revenue and live a rewarding lifestyle.

Who Buys Alpacas 1

Since 1984, alpacas have appeared, almost simultaneously, in several countries where they have never been seen before. The U.S., Canada, Australia, New Zealand, England and many European countries have all acquired the foundation for national herds. There are even beginning herds in Japan and South Africa, among others. What makes this animal so desirable? The bottom line: alpacas can be both profitable and enjoyable.

Courtesy of the Alpaca Owners and Breeders Association, Inc.
5000 Linbar Drive, Suite 297 Nashville, TN 37211
©2007-2008 Alpaca Owners and Breeders Association, Inc.

Finally, alpacas are easy to transport, which makes it easy to move them from one location to another. They have a relatively long and trouble-free reproductive life span, and alpacas can be fully insured against lost.

It is important to recognize that alpaca ownership has inherent risks as do all livestock and financial assets. It is recommended that you talk to breeders to familiarize yourself with the risks as well as the rewards of alpaca ownership.