Alpaca Supply and Demand

The developing market for Alpacas has been restricted by the lack of supply. There are only a few thousand Alpacas in the U.S. and about the same number in Australia. There has been little if any aggressive marketing of the animal, very few auctions, and very little national media attention for the Alpaca. Yet both countries have experienced exceptional demand for Alpacas at very high prices. Canada also has an active Alpaca market, and many Canadians have invested in Alpacas which are cared for on farms in the U.S. and Australia.

Supply will continue to be restricted in the near future for a number of reasons:

• Alpacas reproduce slowly.
• Many breeders retain their offspring, building their herds.
• Import of the animal from South America is very difficult, risky and expensive. The cost of exporting an Alpaca to the U.S. from South America is approximately $10,000. The importer risks losing his entire investment if his animals develop health problems in the quarantine or experience any number of other potential problems.
• Mass production of "cria," or babies, via embryo transplant is not feasible, since there is no available supply of suitable host females.
• The limited size of the national herds in each country outside of South America will restrain growth for some time to come.

Demand for Alpacas has increased dramatically every year since their introduction outside of South America. The American and Australian breed associations have over one thousand members, while only a few short years ago there were none. Each association publishes a full-color Alpacas magazine which is available to its members.