Financial Aspects of Alpaca Ownership

Capital Requirements

Prices for shelter, fencing and labor vary widely based on geographic location, as well as individual needs and tastes. For example, some alpaca breeders will opt for a $500 carport structure as a shelter for their animals, whereas others might spend upwards of $100,000 or more for a state-of-the-art breeding facility and showplace. Additionally, fencing could add several thousand dollars to your budget. If you manage the herd yourself, you'll require an inventory of halters, shears, toenail clippers, lead ropes, and other miscellaneous gear. These items would probably add $500 to your initial costs. Insurance is a consideration, and generally costs approximately 3.25% of the purchase price, paid each year in advance. If a person were to begin raising alpacas at his or her own ranch, a typical startup budget might look like this (prices estimated based on typical costs in the U.S.A.):

Acquisition of one pregnant female and one young female
Insurance on animals, one year
Small barn and fences
One year's feed
Veterinarian and miscellaneous reserve

$ 35,000
$   1,100
$      500
$ 30,000
$      300
$   1,100

$ 68,000

[Costs are rough estimates for comparison purposes only. Actual costs may be higher or lower than figures depicted, depending on a wide variety of factors such as geographic location, available pasture, climactic conditions, health of animals, etc.]

      1. Introduction
      2. Who Buys Alpacas?
      3. Supply & Demand
      4. Alpaca Values
      5. Capital Requirements
      6. Hands-On Ownership
      7. Financial Observations
      8. Tax Consequences
      9. Financing
    10. Creating a Herd
    11. Purchase Contracts


The above text is an excerpt from the AOBA 1999 Breeder's Guide article: Financial Aspects of Alpaca Ownership.