The Cost of Raising Alpacas

Entrepreneurs should carefully consider the pros and cons of raising alpacas before fully committing to such a venture.

How much will it cost you in raising alpacas?

Think about the subsequent information. It is a well-known fact that it is never too costly to feed alpacas. This is estimated at $1 each day for one alpaca which is about the same expense for a big dog. This particular breed has three stomachs making them efficient in the absorption of food. It is a careful feeder and very earth-friendly. It can graze carefully all through the grassland. This animal prefers soft and damp ground with fresh grass. Alpacas do not require special food except during the stage of pregnancy or winter when you need to give them excellent quality hay and pellets with low-protein content.

Alpaca Farming 101

A single acre of land can house five to 10 mammals of this species which is comparatively affordable than any other type of livestock. The present global market value of each head is between $8,500 and $25,000. Alpaca farming for profit depends a lot on the breeding process. You can purchase a pregnant female for $20,000 and sell the baby for $10,000 to upcoming businessmen.

The income you can derive from a female alpaca is as follows:

  • Sale of fleece as fiber – $500 net
  • Sale of male offspring – $3,500 to $8,500 or an average of $5,000
  • Sale of female offspring – $13,500 to $18,500 or an average of $15,000
  • If you count this as 15 productive years, female alpacas have a potential return of $157,000.

The maintenance expenses in raising alpacas are quite low.

Their main source of food comes from pasture grass which is about two quarts of grass daily. This is less than what the sheep or goat consumes. When meadows are undeveloped, the alpaca can subsist on six to eight ounces of grain (2X every day) and two to three bundles of hay each month. Feeding and maintenance costs will sum up to only $400 annually. There are tax deductions for your expenses which can be written off against the profits you make. You are entitled to claim at least 60 percent of these standard expenses as your business expenses. You can claim deductions on feeds, beddings, fertilizers, sprays, veterinary care and other supplies.

Farm repairs and maintenance, fuel, oil, tires and equipment repairs can also be classified as deductions. Real estate renovation for barns, fencing, water sheds and drainage are also considered for possible deductions. This goes the same for your mortgage, acquisition of new equipment, rentals and lease. Legal and tax preparation fees, labor, advertising and insurance are also possible additional tax deductions.

The demand for alpaca products continue to go up. Breeders can actually look forward to obtain higher revenues for selling fleece and female offspring. Thus, returns come quickly and easily for the investors. It is seen as financially-rewarding much more than other related enterprises. All you need is to learn the trade from those who have gone into this business. You can also acquire pointers online by studying closely the history and details of this unique undertaking.