Importation of alpacas into the United States began in the mid-1980's and ended in 1998 at which time the official registry was closed.

Today, raising alpacas for breeding stock and for fleece production has become a recognized livestock industry. There are over 100,000 alpacas registered with the Alpaca Registry, Inc. that are owned by more than 4,000 alpaca farms who are members of our national organization, the Alpaca Owners and Breeders Association.

There are a number of positive attributes to the industry that will encourage further herd growth and participation by an increasing number of farmers.

Here are three typical ways that new entrants to alpaca farming choose to participate in the industry.

For persons who are interested in the fiber arts, such as spinners, knitters, weavers and designers it is relatively easy to get started with your own fiber herd. Since the majority of males are not used as herdsires, they are often available for sale as fiber boys for a few hundred dollars each. An adult male will generally produce four to eight pounds of usable fiber each year. If skilled, the owner can spin the fleece into yarn or alternatively, it can be sent to one of a number of mini-mills that have sprung up to process raw alpaca fiber into yarn or finished products for a fee. The economics are such that your income and return on investment are generally maximized when you can keep as many of the intermediate processing steps in-house and retail the finished products yourself. In the United States, there is a growing market for hand-crafted clothing items and textiles for the home that are made from this luxurious natural fiber. 

Persons who have more capital available and are interested in earning a potentially high return on their investment often begin their participation in the industry by starting up a breeding operation. You can begin by buying one to a few pregnant females and boarding them at the selling farm while you locate property and make any necessary improvements. Some breeders are now offering a variety of attractive financing options to assist newcomers with acquisition of their foundation herd.

  

If you choose to purchase from an established farm, you should expect to be able to consult with the breeder for recommendations on setting up your own farm, selecting herdsires to breed your females to, and the many things there are to learn about your new business. A knowledgeable breeder will be able to help you with your business plan, marketing approach, breeding strategy, animal husbandry and genetics. He may also be able to describe some of the significant tax advantages available to owner/operators of agricultural enterprises.

We have followed this approach and began with three females in 2004. We started with white, fawn and brown animals early on and have since added black and grey. We also acquired award-winning herdsires in order to bring breeding in-house as well. Last year, we joined the Alpaca Fiber Cooperative of North America and contributed our accumulation of fleece. They will turn our fleece into finished products, sell them and return the profits to the membership.

By starting small and growing your herd over time, you will be better able to balance the demands of your new business with your existing career and family responsibilities. Presently, the economics of a well-managed breeding operation can sustain a profitable small scale, part-time business.

For those people who have prior livestock breeding experience and/or significant capital available, established turn-key alpaca farms are available for purchase. The larger of these have grown to a scale of operations that would support a full-time owner/operator or investor/ranch manager format. To maintain a farm's position at this tier requires campaigning your animals in the national show circuit, employing a number of full-time employees, sponsoring or participating in high-end auctions, and an on-going significant commitment of resources to the farm's sales and advertising activities.

Given the alpaca industry's excellent prospects in the United States, there is plenty of room for new entrants at any desired level of participation. As with any other small business, it really helps if you love what you're doing, can keep a positive outlook and a steady focus on achieving your business goals.