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Investing in alpacas is entering into a business. There are considerations and expenses to consider when
entering any business. The following will give you an overview of what needs and expenses and revenue sources you would likely have in setting up your alpaca business.
Physical Set-up
- Barn or shelter. If you will need to build, allow $5,000 to 30,000 for barn structure or shelter with water piped in, depending on design, size and labor.
- Fencing (no climb horse fence) figure at $1.50-2.00 per foot. Safe fencing, installed properly is a must for the safety of your alpacas.
Equipment and supplies. These are basic. Depending on whether buying new or used, allow $2000 – $3000 for these items. Link to resource page
- Feeders
- Buckets or automatic waterers
- Digital scale
- Livestock chute
- Shovels and rakes
- Wheelbarrow
- Medical supplies
- Many start with a used, small horse trailer, ranging from $1000 – 2000.
- Halters, leads and catch ropes.
Truck and Trailer
- Do you own a truck? A truck is an indispensable item on a farm and can be a tax benefit!
- Stock trailer may be found used or new.
Nutritional and Medical Supplies link to resource page
If you do have pasture grass, you must have it analyzed for nutritional content and levels. Call your local extensive service for help. If you don't have pasture that is adequate to provide the needed food supply for your alpacas, then you will need to find a good source of hay. Good grass hay will cost you anywhere from $2.50 to $10.00 a bale depending on where you live. Your alpacas will also need a mineral supplement and specifically formulated pellets.
Do you have a camelid knowledgeable and experience veterinarian in your area? The vet will advise you on a proper vaccination and worming regime for your specific area. Vet care and food per alpaca is estimated at $300 to $350 per year.
Business Expenses
How do you intend to market your alpacas and business services? This is critical to your success. If you don't advertise and market, you don't have a viable business. Consider these marketing and business costs:
- Advertising costs, what venues (without it, you are not in business!)
- Participating in alpacas shows (entry fees, lodging, food and travel expenses)
- Farm events (cost of services you provide at your farm)
- Education (variable)
- Entertainment & travel costs (depends on attendance at shows and conferences-such are business deductions)
- Personnel needed
- Brochures, fliers, business cards (cost of design and printing)
- Letterhead, envelopes (cost of design and printing)
- Unique website ($1000 +)
- Professional memberships – national and state alpaca organizations ($500+ annually)
- Accountant, lawyer
- Farm and alpaca insurance (usually about 3% of value)
- Alpaca registrations ($65 per animal)
- Professional shearing ($15-25 per animal, once each year)
Alpacas! Your product line. (link the word alpacas to sales page and to alpaca info later in this section)
And now we come to the basis of your livestock business —your alpacas! DO NOT hunt for "bargains." This is the beginning of your foundation herd and will represent your farm. Don't you want clients to be impressed with your product? Consider the alpaca in terms of marketability for your business.
Research the market and understand what constitutes a quality alpaca. The current alpaca market is very strong and alpacas out of proven genetics, producing marketable fiber are selling well. Start with as many alpacas as your finances will allow. Take into consideration any tax deductions or depreciation you will have with the purchase of your stock and other start-up equity.
What should you expect to pay for alpacas?
Purchase price $14,000-30,000 each for quality bred females
Insurance 3.25% of purchase price plus cost of vet exam
Boarding $2.50-$3.50 per day (if not already set up with your own facility or you plan to be investor only)
Other important considerations in purchasing alpacas are breedbacks, shipping, and resources.
Breed backs: Negotiate breed backs for your females if possible. This will save breeding fees in your first two years. Breeding fees range from $1500 to $3000 for good stud services.
Shipping costs: Depending on distance to be shipped, estimate $250 each.
Resources: It is also very, very important to buy from a reputable breeder who will give you support after the sale. See our KANSAS ALPACA COMPANY Sales List
Purchase of Herdsire
Purchase price: Unproven, sire of note, $18,000 +. A herdsire is a promotional tool for your farm and business. A top quality herdsire with a desirable bloodline will attract breedings at $1500-2000 per breeding. With good promotion after initial year and crias on the ground, a herdsire may be contracted for 6-15 breedings a year, providing a source of revenue in addition to alpaca sales.
Select a herdsire from bloodlines and proven genetics that will enhance your own breeding program.
Return on Your Investment – Sources of Revenue
- Sale of offspring or adults annually. Females under one year sell for $10,000-15,000 depending on their sire; bred at 18 months to known sire, $13,000-18,000. Males under a year sell for $500-10,000 depending on sire and quality.
- Breeding Services
- Sale of value-added goods from fiber
- Services you offer, such as boarding or educational events
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