Creating a Herd

First, determine your goals for Alpaca ownership. Would you like to own an inexpensive pair of gelding males for fibre 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?

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 "Alpaca Approach" suitable for you. 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.