Alpacas are members of the camel family and were domesticated several thousands of years ago. They are originally from South America in the Andean countries of Peru, Chile, and Bolivia. Imported to North America for general use in 1984, there are more than 100,000 alpacas in all 50 states now. The average height of an alpaca is about 33-35″ at the withers (the top of the back closest to the neck); the average weight for adults is about 120-170 lbs, which makes them about 1/2 to 1/3 the size of a llama. In South America, alpacas live 15-20 years. However, with better nutrition and day-to-day care, the North American alpaca can probably live as long, if not longer, than 20-25 years. Females reach maturity around 18 months of age and males at 2 1/2 to 3 years of age.

Alpacas are hardy animals that do not require a lot of special care. They are thrifty as well, needing only about a bale of hay per month per animal, even if they are kept on dry lot with no grazing pasture. Estimated costs to feed an alpaca run approximately $1.00 per day. That means the average alpaca costs less to feed than the family dog.

Alpacas are raised for their luxurious fiber, which is shorn once a year and produces enough raw materials from each animal for several sweaters. The fiber comes in 22 natural colors, contains no lanolin, requires no chemical scouring, is warmer, stronger, lighter and more breathable than wool. Many people who cannot wear wool can wear fine alpaca clothing in complete comfort. Alpaca garments are warm even when wet, making them ideal for outdoor activities. Perhaps, this is the reason that on the world market alpaca fiber commands 10 times the price that virgin wool does.

Alpacas are herd animals and should not be raised in isolation. They seem to learn by observing other herd members as much as being trained themselves. A minimum of two alpacas is recommended for the well being of each alpaca. Well nurtured, they seem to sense the need to be sensible and gentle with children and are great favorites for 4-H projects, pets, and therapy animals.

While alpacas are remarkably easy to house and care for, there are certain things they need to be healthy and happy. This article covers routine care, but for more detailed information, a prospective buyer should contact a local alpaca breeder. It is advisable to find a veterinarian in a buyer’s local area who has experience with either alpacas or llamas. Failing that, any vet who is comfortable with goats, sheep, and horses can care for alpacas. An alpaca’s digestive system is similar to that of goats or sheep; its reproductive system is more like a horse’s. An alpaca’s medical needs are few, but they are a little different than traditional livestock.

A Brief History of Alpacas

Alpacas are thought to be descendants of the wild vicuna. Early camelid ancestors migrated south from North America to the Andes Mountains of Peru, Chili and Bolivia adapting and thriving along the borders of perpetual snow. They also moved north through Asia, finding their way into Africa to become eventually the camels commonly thought of today.

There are two types of “humped” camels. One is the single humped dromedary of Northern Africa, the Middle East, and Southern Asia. The other is the two-humped Bactrian of the Gobi Desert in China and Tibet. Then there are two “horse-like,” double-fleeced members of the camel family. These are the wild guanaco and the domesticated llama. The last two members of the “fiber-bearing” camel family are the wild vicuna and the domesticated alpaca. 

Andean Indians domesticated alpacas more than 5,000 years ago. The Inca Empire further refined alpaca husbandry in the 11th and 12th centuries. To the Incas, alpacas were the most valuable of all domestic animals. They were so important to the Empire that a royal organization of nobles ran the breeding program that selected for fiber production and the perpetuation of the species. Alpaca husbandry thrived up until the time of the conquistadors, who to make way for their own domestic livestock herds, nearly wiped South American camelids out of existence.

Types of Alpacas


Within the species, there are two types of alpacas, Huacayas (wah-ki-ah) and Suris (sir-e). Huacayas comprise approximately 98% of the alpaca population.  Their fleece has waviness or “crimp,” which gives huacaya their fluffy, teddy-bear-like appearance. Suris are distinguished from huacayas by their fiber, which is finer and straighter. Suri fleece has little or no crimp, so the individual fiber strands cling to themselves and hang down from the body in beautiful locks.  It parts along the length of the spine, much like the hair on an Afghan hound. The suri is very rare, with the worldwide ratio at about 2%.

Personality

Alpacas are shy, quiet, curious and intelligent. Because they are herd animals, they develop relationships based on their position in the group. Dominant females become the herd “matriarchs,” and dominant males become the “bosses.” Alpacas have no natural self defense mechanisms, so they cannot bite aggressively, as they lack top incisors (front teeth) just like goats or sheep. Their feet are padded on the bottom, so they cannot do much damage by kicking. They lack claws or horns. Their primary self-defense is to run away. While they are generally quiet, they do seem to communicate by emitting a gentle humming sound. They do have an alarm call that typically means a predator is in the area.

They spend much of the day cushed (lying down), chewing their cud. They enjoy an evening or morning romp, where the whole herd moves as a unit in a bouncy gait called “pronking.”  Some antelopes have a similar gait.

Nourishment

Alpacas are ruminants, meaning they chew their cud. The type of hay best for them is grass hay, such as orchard grass or timothy or coastal Bermuda. Alpacas do enjoy a treat of alfalfa, and alfalfa can certainly be added to a grass hay diet for an animal that needs to gain some weight. However, a diet composed entirely of alfalfa is generally too rich for an alpaca. If alpacas get fat, their fiber coarsens. Alpacas require lots of good, clean water to drink. Some owners report that alpacas like carrot slices as a special treat, especially when training. Alpacas also need minerals. There are minerals specifically formulated for alpacas that can be purchased along with a variety of alpaca care products from suppliers found on the internet.

Shelter

Alpacas are easy to care for compared to some livestock.  They are adaptable and live in many climates. Although Florida weather can be extremely hot and humid, with proper management, alpacas can adapt just fine in this weather.  If raising alpacas in a hot climate, make sure they have adequate shelter, shade, clean water, and an area where fans can be turned on during the hottest part of the summer.  Alpacas enjoy having their underbelly watered down, and they enjoy kiddy pools as well.  Prospective buyers should contact an alpaca owner in their area for some great ideas on how to help their animals cope with extremes of temperature.

Alpacas need some space to move around, but since they are not very big, they can live in surprisingly small areas. Five to ten alpacas per acre gives plenty of room; and lots of alpaca owners house them in smaller areas than that, especially if they are “let out” into a run or field periodically. There should be a good shelter so they can escape the cold, rain, snow or heat. Alpacas do not challenge fences, but the area where they are kept must be fenced to discourage predators. One of the biggest threats to alpacas is dogs--even the family dog can be a problem if it is not used to livestock. Other predators to be concerned about are coyotes, wolves, bears, and mountain lions.

Alpacas are naturally clean animals, generally “dunging” in only one area of their enclosure, which they avoid for all other activities. Their manure is valuable and makes great fertilizer, requiring no composting. Gardeners love it, so an owner should have no problem getting rid of it.

Health Maintenance

Like all livestock, alpacas can get parasites. However, it is less of an issue than in some other species, such as donkeys or goats. Owners should rake all loose hay and clean all the dung piles daily to reduce the risk of parasite contamination. A vet may also recommend periodic worming medications to prevent the usual internal and external parasites. Again, prospective alpaca buyers should consult with an alpaca farm in their area, because parasite treatment may vary widely depending on climate.

Alpacas are grazing animals and will also eat many kinds of shrubs and trees; some of which may be harmful. It is best to keep them away from garden areas or potentially toxic shrubs and trees. A fellow alpaca breeder can help new alpaca owners identify any problems in area, or the new owner can contact the local county extension agent.

For good health, alpacas need to be sheared once a year. Alpacas also need their toenails trimmed about every month or two. An annual inoculation is given to protect against clostridia and tetanus bacteria. Some areas also recommend annual rabies and/or West Nile vaccinations. New owners will want to check with local vets to see what they recommend in their area.

Shearing

For health reasons, all alpacas should be shorn once a year even if the owner does not wish to use the fleece in any way. Many breeders use a shop-vac to vacuum or blow out debris before shearing. Do this outside to avoid showering everyone with dust or subjecting everyone to the loud noise of the vacuum. It’s always a good idea to wear hearing protection and a dust mask. If there are enough people to help, this can be done the day of shearing.  Pick out as much debris as possible by hand or use a wand to help dislodge dust, etc. The cleaner fiber is before clipping, the easier it is to shear and process.

Shearing should remove the fleece almost to the skin, leaving ¼” to ½” on the animal. It is alright to leave fleece on the head and lower legs, but everything else is removed. Shearing can be accomplished using scissors, sheep shears or electric clippers. Shearing should be done in the spring before the weather heats up. If you only have a couple of alpacas, chances are you can take your alpacas over to another alpaca owner’s ranch during shearing season to have them shorn for you. Most professional shearers charge about $30 per animal, but sometimes you can work out a barter with an alpaca owner, trading fiber for shearing. You can also sell your fiber to cottage artists or some vertically integrated alpaca owners for $5-$20/lb depending on the quality of the fiber, the color and the fineness. Put out your request for helpers far in advance of your shearing day. Plan to have a crew of at least three people, besides the shearers, to help. If you can arrange more people, that’s even better. You can never have too many helping hands. Some farms use shearing day as an “Open-Farm” day and invite the public to watch the proceedings. While that can be great fun and a good source of advertising, it might be a good idea not to do it on your very first shearing event.

Reproduction

Female alpacas can have one baby a year and typically have few birthing problems. Twins are very rare and usually do not make it to birth; however, some do survive. The alpaca mother nurses her baby, called a “cria,” for 6-8 months. Babies start eating hay pretty much right away, but do not really live on it until they are 4-5 months old. Baby alpacas live with their mothers until weaning. After that, they should be moved to another pen, at least until the desire to nurse ceases. Once weaned, male and female alpacas are usually kept separate to prevent unwanted pregnancies.

Young males become mature enough to breed between the ages of 18 and 36 months, although some have been known to breed at much earlier or later ages. Male alpacas kept as pets or fiber animals should be gelded after the age of 18 months. Gelding prevents behavior problems, such as fighting, and also keeps the fleece from coarsening as the alpaca ages.

Young females become mature around the age of 18 months. Some females can become pregnant earlier than 18 months, but breeding them is not recommended as they are still growing and are mentally immature. Males and females may still be reproductively sound at advanced ages. Alpacas live 20 years or longer.

Health care
Alpacas are generally hardy and disease resistant but benefit greatly by preventative medicine and ready access to veterinary services. In areas with whitetail deer populations, an inexpensive monthly injection of Ivermectin to prevent meningeal worm is necessary. Essential minerals to the species including selenium and phosphorus should be provided in a grain mixture. Nail care and trimming is important and should not be allowed to grow long and curl.

Physical Characteristics

Toenails
Alpacas have a hard, protective upper toenail that must be trimmed every few months. The bottoms of their feet are soft pads with a leather-like consistency. Because of these soft pads and relatively low body weights (as opposed to other forms of livestock), their feet do little damage to the ground in their pasture areas.

Fiber


Alpaca fiber is stronger and more resilient than even the finest sheep's wool. Unlike sheep's wool, however, alpaca contains no lanolin and is ready to spin right off the animal. It comes in 22 distinguishable colors. Alpaca fiber is considered hypoallergenic and will not irritate the skin. This is because the scales of fiber lie down against the shaft of each hair follicle. Alpaca wool is scientifically proven to be a better insulator than sheep's wool.

Teeth


Alpacas only have bottom teeth for eating. On the top is a hard gum pad against which they crush grain, grass, and hay in a back and forth grinding motion. Their upper lip is split to make this back and forth motion easier. Alpacas have a very short tongue attached to their jaw. Because of this, they cannot grab hold of plants and grass to pull them up by the roots, as do goats, sheep, horses, etc. Alpacas nibble plants down to about ¼ inch, which enables their pastures to grow back quickly.  

 

Breeding Methods

There are two basic breeding methods--pen breeding and pasture breeding. With pasture breeding, females are free to roam with the males. With pen breeding, a breeder can keep better track of when mating occurs and more easily approximate the most likely due date. In this method, the female is introduced to the male every three days for two weeks. This way there will be an egg present during breeding. If the female goes down (cushes), she is not pregnant. When she is pregnant, she will generally reject the male’s advances by “spitting him off” and running away.

Gestation Period

The gestation period is 11-12 months. Females usually have single births, and human intervention is rarely needed. The newborn (called cria) usually weighs between 15-19 pounds, with delivery occurring usually during the daylight hours. The newborn cria is usually standing and nursing within 90 minutes of birth, and will continue to nurse until weaned at 6 months of age. Twins occur about every 10,000 births, but are usually stillborn. The time between breeding and rebreeding can be as little as 3 weeks.

Alpaca Communication

Alpacas have a very complex language of gestures that they use to communicate with each other. They use body posture, ear, tail, head and neck signals, several vocalizations, scent and smell, locomotion displays and herd response to communicate.

Broadside Pose

Males strike a pose broadside to signal aggression from far off. They stand sideways, rigidly holding their tail high, neck arched, ears pinned back and nose tilted skyward. This posture can signal to an intruding male a mile off that it is approaching the gesturing male's territory. A male in the company of females is likely to strike this pose.

Alert Stance

When a dog or cat walks nearby, all alpacas will stand with their bodies rigidly erect and rotate their ears forward in the direction they are staring. The tail is usually slightly elevated. This posture signals curiosity about a change occurring in the immediate environment. This posture will come before an “alarm call” or rapid flight, if the herd interprets the change as danger. It also will cause the entire herd to bunch together and move forward in unison to investigate or chase off the intruding animal.

Standoff

Two animals will stand rigidly within a few feet or even inches of each other, ears pressed back, neck held high, head tilted upward and tail elevated. The standoff is a middle grade show of aggression, often between alpacas of similar rank. It happens when neither alpaca immediately yields to another's show of dominance. If one of the animals does not eventually walk away or turn its head, spitting, pushing and aggressive noise may erupt. Females often resort to this behavior near food or in defense of a cria.

Submissive crouch

While slouching slightly, the animal lowers its head, curves its neck toward the ground and flips its tail onto its back. This is a posture seen in adolescent and young adult animals and signals to a dominant animal that its higher status is recognized and that no challenge will be forthcoming.

Vocalizations

Alpacas use complex sets of sounds to communicate with each other.

Humming

Humming is the predominant sound you will hear when you come to an alpaca ranch. Alpacas hum for many reasons. From birth until at least six months, mothers and their crias hum to each other constantly. As a sign of distress at separation from each other, alpacas will hum mournfully. Weaning is a particularly stressful time for both mom and cria and humming is constant and heart wrenching. Alpacas also hum when they are curious, content, worried, bored, fearful, distressed or cautious.

Snorting

Alpacas give a very subtle snort to another alpaca if he or she is coming too close, or being too familiar.

Grumbling

Alpacas signal their food trough territory to each other by grumbling at equal ranking animals. Feeding time often sounds like a bunch of complaining kids bickering at each other.

Clucking

Mothers generally cluck around their crias, particularly when starting to nurse. To politely warn you, sometimes, alpacas cluck when you are getting too close.

Screaming

Some alpacas are very high-strung and extremely fearful. When you handle them, or their crias, they will put their face next to your ear and let loose a deafening scream. If they are so frightened as to scream, a very revolting spit is probably not too far away!

Screeching

When fighting over food, some alpacas get frustrated and let out screeches and accompanying spits at each other. Males will screech and scream when their wrestling gets too serious and someone gets mad.

Alarm Call

When something unusual or resembling a predator appears in the vicinity, one alpaca will sound a high-pitched, rhythmic keening sound, which causes the herd to bunch up for protection.

Orgling

Male alpacas have a unique throaty vocalization they make when mating. Each male has his own style and intensity of orgling that may involve throats, lips and breathing apparatuses.

Spitting

Spitting is perhaps the least endearing feature of alpacas. It is one of the few defense mechanisms an alpaca has and is quite an effective deterrent. The material is basically regurgitated or recently chewed grass, and it brushes off when dry. It does have a distinctive and somewhat offensive odor, and it is best to avoid being a target.

However, it is quite rare that alpacas spit at people. It is normally used as a pecking order mechanism with other alpacas. If a human hit occurs, it is usually because the person has not read the signs properly when stepping between two squabbling alpacas and the human gets caught in the cross-fire. 
Male alpacas horse around, stand each other off and spit at each other. Both males and females spit in dominance over food. Moms will spit at another mom's babies who try to suckle or mount her or get too close to her newborn.

Are Alpacas right for you?

Alpacas are perfect for a family farm.  They are gentle and easy to handle. They are safe even for younger children to work with, as they do not bite or butt. This is a venture that the whole family can work together on.

Potential new alpaca owners will often have sticker shock at the initial look at investing in alpacas. But think of the investment this way. At this stage of the industry's development, price is directly related to the individual breeding potential and the potential quality of the offspring.

For example, a gelding (castrated male) has no breeding potential and is therefore the cheapest alpaca to buy (around $500 to $1,500). On the other hand, a high quality male with many good progeny on the ground has a very high breeding potential and can be worth many thousands of dollars. He can also command a high income from the stud services he provides.

Female prices are a reflection of quality, age, breeding history and to which stud male she is mated. Females can be worth anything from a few thousand dollars to tens of thousands of dollars.

Income from females is derived from selling the offspring. However, breeding plans should be made so that long term depreciation of the older breeders and increases in quality of offspring are taken into account.

Alpaca breeders enjoy nurturing their animals every bit as much as receiving the profits they provide. Since 1984, alpacas have appeared, almost simultaneously, in several countries where they had never been seen before. The U.S., Canada, New Zealand, France, Italy, Switzerland, Australia and England have all acquired the foundation animals for national herds. What makes this animal so desirable? The bottom line: Alpacas are both profitable and enjoyable.

What do you do with alpacas?

Alpacas can provide an excellent investment opportunity and are the source of luxurious fiber. The fleece, comparable to cashmere, is known for its fineness, light weight, and luster. Alpaca textile products are recognized world-wide. Everyone should own a soft, warm alpaca sweater.

What do alpacas do besides grow fleece?

They make excellent companion animals and are also show animals with high aesthetic appeal. They have lovable dispositions. Alpacas are easily trained to lead and are gentle enough to be handled by children. They are always a hit in a parade.

Can you pack with an alpaca?

They can carry a small child or a light backpack on summer outings, but for heavier loads, the larger llama is more appropriate.

Are alpacas related to the llama?

Alpacas are very closely related to llamas. They are both from a group of four species known as South American Camelids. The llama is approximately twice the size of an alpaca with banana shaped ears and is principally used as a pack animal. Alpacas are exclusively bred as fleece animals.

Can I have an alpaca as a pet?

Most alpacas make very good pets if they are treated well and the owners are realistic in their expectations. Like any livestock, the more handling they receive as youngsters, the quieter they are as adults. Given time, most alpacas will eat out of your hand and training them to lead by a halter is a straightforward process.

Alpacas generally don't like being held and are particularly sensitive to being touched on the head. They are naturally curious and intelligent, and if you let them approach you, rather than rush at them and expect an affectionate response, the interactions can be very rewarding.

It is possible to have a single alpaca, but it is not a pleasant existence for the animal. Alpacas are herd animals and are instinctively gregarious, as are other domestic livestock. They obtain security and contentment from having at least one other alpaca for company.

For this reason, it is usually recommended that two alpacas are the desirable minimum.

Are Alpacas dangerous and are they smart?

They are not dangerous. They are safe and pleasant to be around. They do not bite or butt, and they do not have the teeth, horns, hooves, or claws to do serious injury. They are amazingly alert animals who quickly learn to halter and lead. They constantly communicate with each other through body posture, tail and ear movements, and a variety of sounds. The sound heard most often is a soft humming, a mild expression befitting a gentle animal.

Do Alpacas kick and bite?

When interacting with humans, kicking and biting is highly individualistic. Alpacas are usually sensitive around the hind legs and will instinctively kick backwards if they sense a threat from the rear.

Most alpacas do not kick at humans, but there are individuals that can be quickly identified as being prone to kicking. This is more evident in a pregnant female that wants to deter the advances of an amorous male.

Fortunately, because the foot is a soft pad, injuries to humans are minimal. Most alpacas respond very well to desensitization of the hind legs if they receive good handling as youngsters.

Alpacas that bite people are extremely rare, and it is not a general problem. If it does occur, it tends to be an attention seeking behavior by spoilt pets rather than an attack.

Can I run alpacas with other livestock?

Alpacas can bond well with other types of animals. Naturally, alpacas and large aggressive dogs are not a good combination, but there are many cases of quiet dogs mixing well with alpacas.

Individual alpacas have been very successfully run with sheep and goats to act as fox guards. The alpacas tend to bond with the foster herd, and they are naturally aggressive toward foxes.

If running with different livestock, alpacas will pick up the internal parasites associated with the other animals and should be put on the same worming regime.

Because of the risk of the alpacas being kicked, caution should be used if running them with cattle or horses.

How often does an alpaca have to be sheared?

Alpacas are shorn once a year, usually in spring. Shearing is the biggest maintenance required and usually takes around five to ten minutes per animal for an experienced alpaca shearer.

If you are purchasing your first alpacas, ask the vendors for the name of a recommended shearer, or ask if you can bring the alpacas back to the property on their shearing day.

A very small percentage of alpacas are shorn standing up, the preferred method of shearing is to lay the animals on their side and restrain their legs with a tether at each end. This protects the shearer and the alpaca from being accidentally cut. One side of the animal is shorn, and it is then rolled over and shorn on the other side. Depending on the density of the fleece, alpacas cut anywhere between 3 and 10 pounds of fleece. Some of the high quality stud males will cut higher weights.

What do alpacas eat?

They are ruminants, which mean they chew cud like a cow or deer. They survive well on different kinds of low protein hay or pasture grass, providing it has a balanced mineral content. Because alpacas evolved in harsh conditions, they utilize their food more efficiently than other ruminants. They cost about as much per month to feed as a dog.

Although they can survive very harsh conditions, alpacas do best on good quality pasture and benefit from having access to plant material with long fibers, such as hay.

There are a number of commercial alpaca mixes available, but these are best thought of as supplying vitamins and minerals rather than the bulk feed that is obtained through grazing.

One important rule to remember is to introduce any changes to the diet gradually over a period of a couple of weeks. This way the microbes in the gut have time to adjust to any feed changes.

What sort of diseases do they get?

Compared with other livestock, alpacas are relatively disease free. Because of their dry fleece and naturally clean breech, fly strike is not an issue with alpacas. Vaccination programs vary by geography on veterinarian's advice.

When buying alpacas for breeding purposes, it is advisable to arrange a veterinary check to ensure you are buying a healthy animal.

Some gardens contain a number of plants that are toxic to most livestock (oleander, rhododendron, laburnum, etc.). Care should be taken when fencing off gardens that such plants do not overhang into alpaca areas. There is a history of calamities with other livestock that have inadvertently been fed pruning from such plants. Local nurseries can provide good advice on poisonous plants, or check with your county extension agent.

Although some people think alpacas don't drink huge amounts, they do need to have ready access to good quality, fresh drinking water.

Where & how do I start to become an Alpaca Rancher?

The very first thing to determine is do you even like alpacas? You need to visit a ranch and have owners introduce you to alpacas.  Having determined that you would like this life style, after a few visits to different ranches, you need to decide what size ranch you would like to run (small, medium, large or pet). Visit as many different types of ranches as you can; this will help you make your decision. Most people start out small but eventually develop into a medium or large ranch. You will spend more time working when it is birthing,
shearing and vaccination time. Alpaca are shorn once a year and vaccinated 4 to 8 times a year, depending upon where you live.

When you know what type of ranch you want, the next choice is do you have the land available or are you going to have to purchase it? If you already own a ranch, you are ahead of the game. It can be a large ranch or just a couple of acres (5 to 10 animals per acre). If you are going to have to purchase land or a ranch, it’s always nice to buy a ranch with all the buildings and fencing on it. If you’re building, keep in mind, “whatever you think it will cost you to build, double or triple it.”  Another important note is to have an easy location to find, with good access for the public.

Purchasing your alpacas

The one thing that is never mentioned in the industry is “Everything is negotiable.”  It’s like buying a new car: you can haggle on the price and services (boarding, breeding, shearing, etc.). If the alpaca is priced from $8,000 to $14,000, there is not much room to haggle on the price, but you can talk about the services. If the alpaca are priced $15,000 on up, you can haggle on the price and services. Pet quality animals can be purchased between $500 and $1,500. These are the non-breeding fiber producing animals.

There are different views when it comes to buying alpacas. The first is to buy the best alpaca you can afford. The second is to buy lower priced alpacas and breed up. This means to breed more desirable qualities into your alpacas. The first takes more money; the second takes more time. This is a choice you will have to make. Talk to different ranches and find out how they did it, and is it working for them?  Some people will buy the alpaca and work out free boarding or a reduced cost of boarding for a year prior to taking possession. If you buy 3 pregnant female alpacas, you should be able to take home 6 after one year. Ask about reduced breeding fees. Those 3 girls will need to be re-bred before you take them home. Do not worry about purchasing a stud until all your breed backs are done. When you purchase your alpacas, you will most likely need insurance on them. It will cost about 3.25 to 3.5% of their purchase price per year per animal. On a $10,000 alpaca, that will be about $350 per year. Most people carry insurance on their alpacas until they become self-insured. After you have decided which alpacas you want to purchase, you will be asked to sign a contract. Have the seller give you a blank contract and explain it to you. The contracts are very straight forward. The contract protects both you and the seller. Make sure you understand it. The contract can be amended to accommodate any changes you wish. At this time, you can insert any requests that both you and the seller have agreed upon. You should also put
in a clause asking that the female alpaca be tested for proof of pregnancy. If the seller does not have proof of pregnancy within the last month, then you need another test (progesterone or ultrasound).

How much should I pay for an alpaca?

You will hear some ranchers say, "Get the best alpaca you can afford."  Others will take a different approach to alpaca ranching. An example is one rancher who bought 3 lower priced alpacas and 1 blue ribbon winner. That buyer’s thoughts were that the more alpacas you have in year 1 the greater number you will have in years 3 and 4. If you start out in year 1 with 4 alpacas, in year 3, you will have 12. If you start out in year 1 with 2 expensive alpacas, in year 3, you will have 6. If it makes sense to have more in year one, you can always breed up in quality. With this approach, you should consider spending more on top of the line stud breeding to get your quality up. The approach of purchasing the best you can afford is valid as well. If you’ve got the patience to nurture your investment and watch your business grow at a slightly slower rate with higher quality, then you’ve lost less time in trying to breed up. Either approach is fine. It’s just a decision you have to make.

Why do people call Alpacas the world's finest livestock investment?

For any investment to be valuable, it must possess certain qualities which 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 investment 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 fiber are known in the fashion centers of Paris, Milan and Tokyo. There are excellent profit opportunities and tax advantages available to Alpaca breeders and investors. Historically, the Alpaca's value has sustained ancient cultures, such as the Incas of Peru, and today, alpacas are the sustaining economic force for millions of South Americans.

History has validated the value of the Alpaca. "Livestock," or animals raised for profit, was an investment 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 tending to a graceful herd of alpacas can also be an exciting way to earn a substantial cash flow and live a rewarding lifestyle.

Different types of Alpaca Ranches

Pet Ranches

This type of ranching has struck the interest of many people.  You will usually breed and buy alpaca that have nice fiber but might lack the other qualities some ranchers are looking for (conformation & ancestry). You will be dealing with very interesting people (spinners and weavers). These people are the salt of the earth and are a pleasure to meet. You will not be into the high dollar alpacas or have the worry of high dollar breedings. Most pet quality ranches supplement their income in other ways. Pet quality alpaca are loved by both adults and kids. The expense on keeping a couple of alpaca can cost less than keeping 2 large dogs. They are great for FFA or 4H projects.

Small Ranch (1-20 alpacas)

Small ranchers are usually owners who simply enjoy raising and being around alpacas. It's used as a life style change or to supplement a retirement income. They would rather dedicate less time to working and more time to being around the alpaca. The ranchers choosing this route will most likely purchase 2 to 3 medium quality females and take the time to breed up in quality. They most likely will not have an expensive stud and do some outside breedings.

There are small ranchers who also enjoy entering their alpaca in various shows and traveling to these different shows. Usually their income is not based solely upon the alpaca, but you can still enjoy the tax breaks (that can be significant) that come with raising alpacas. If you are not inclined to get into shows and the cost of advertising, then you might want to broker your animals.

Medium Ranch (20-60)

Those alpaca ranchers who fall into this category were usually small ranchers just a few years back. They have found there is a demand for boarding, shearing and sale of alpacas. They are knowledgeable because of the time invested with alpacas. They will start breeding for stud quality males and going outside to purchase studs for diversity. If you do not have the time to wait for this to happen, then you will have to lay out a substantial amount of cash to get started. It has been the experience of many that the longer you are in this industry, the more opportunities you will see. Many ranchers now raise, breed, board, shear, process and sell fiber from their alpaca. The possibilities are only limited by your imagination.

Large Ranch (60-??)

The large ranch is the type of rancher who is willing to travel, go to all the large shows and has value added processing. They not only raise alpaca, shear them, process the fiber into a finished product, but also sell their product. This is a large operation and takes either a lot of years or a lot of money to get off the ground. It's a high risk, high reward operation. Large ranches will utilize every aspect of their operation, from selling the manure to opening a store on the ranch to attract potential customers.