Why do people in so
many countries 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 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.
Alpaca breeders
enjoy nurturing their animals every bit as much as receiving the profits they provide. The man who created the
"Beefmaster" cattle from imported Limousine stock made the following observation: "I know a lot
of doctors and lawyers who would like to be cowboys, but I don't know any cowboys who would trade places with them."
Since 1984
Alpacas have appeared, almost simultaneously, in several countries where they had never been seen before. The U.S.,
Canada, New Zealand, France, Australia and England have all acquired the foundation animals for national herds.
What makes this animal so desirable? Bottom line: Alpacas are both profitable and enjoyable.
Where to start
First, determine your goals
for Alpaca ownership. Would you like to own an inexpensive pair of gelding males for
fiber production or as pets
for you and your family? Are you going to be a full time or part-time breeder? Will you invest in Alpacas for current
financial returns or are you going to build a herd toward the day you retire?
The chart below represents herd growth over
a 10 year period
Beginning at year 1 with 2 males and 5 pregnant females.
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126
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98
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77
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60
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46
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36
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27
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20
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15
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11
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7
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Begin year 1
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End of year 1
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End of year 2
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End of year 3
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End of year 4
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End of year 5
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End of year 6
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End of year 7
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End of year 8
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End of year 9
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End of year 10
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Once you've decided
on your goal, the path to Alpaca ownership will be more easily defined. Maybe you've decided to start a small herd
and let it grow over a period of time before retiring and living off the income the herd produces. If so, you'll
have the power of compounding on your side. Remember, our first graph demonstrated that five females and two males
would grow to 126 Alpacas in ten years. Thirty-five of these would be adult females and they would produce about
28 cria in year ten. Sales from this many babies at today's prices would generate about a quarter million dollars
in annual sales. The next year, your sales would be even larger since an additional 15 females would be old enough
to breed.
If you're interested in acquiring a producing Alpaca herd with immediate
sales, you may want to consider a larger initial investment. You would probably invest in a number of pregnant
females who would deliver a cash crop of cria immediately. This larger investment might also encourage you to become
more involved in the industry and spend more time marketing your herd. Some breeders with bigger herds have full
time ranch managers or hire additional labor to assist them with the day-to-day chores.
However you choose to be involved, there is an opportunity. The industry
is very young and represents a ground floor opportunity. Very few investments have the potential to reproduce themselves
every year. An Alpaca does. Today's smaller breeder can choose to be almost any size in the future. An investor
who likes the return Alpacas offer, or the lifestyle they provide, can choose any level of investment.
To contact us
regarding investments in Alpaca, click
here and we will be glad to answer any questions you might have.
More on Investing |
