This is a brief overview of the financial returns alpacas currently offer. Along with a very strong return on investment, the animals also have enormous beneficial tax advantages.
Under tax law article 179 breeders can deduct up to 150% depreciation on their alpaca purchases along with other capital improvements to their farm.
Not only are the alpacas themselves profitable, the underpinning for the future of the alpaca is the value of the fleece. It is not uncommon for breeders that harvest their fleece and have it made into finished alpaca garments to realize a profit of up to $100 per pound based on the grade of fiber and finished product that it is made into.
The range of value for breed stock female alpacas is currently between $10,000 and $40,000.00. On average it cost about $16,000 to import and alpaca from South American witch became the base price structure for alpacas twenty years ago when they were being imported. The importation of alpacas from South America has been closed since 1996 making only alpacas born in the USA eligible for the Alpaca Registry. In most cases quality breed stock has maintained its value and will continue to do so for many years. for those breeders who maintain a quality breeding program. Quality males, with unique attributes have sold in excess of $200,000. To put this into context, alpacas are like diamonds. The market pays a premium for flawless examples of the breed.
Production stock alpacas, usually castrated males, can be purchased anywhere from $100 to $1500. These alpacas are used strictly for their yearly harvest of fiber as a means of profit. These alpacas make great pets. What other pet can you own that could make you up to $100 per pound from their fur. |