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The Alpaca. The animal. The business...

...the investment that grows


Alpaca return on investment.
A simple example of how one alpaca can return a significant profit to you.
Assume you buy a pregnant female, ready to deliver in a month or two. She costs you $ 25,000. ( Typically the cost is $ 18,000 to $ 30,000) If she delivers a baby girl, here are your choices:
1. you can sell the baby girl before she matures to breeding age for $ 15,000 to $ 18,000 If you simply sold her, you would have a return of 15,000/25,000 = 60%
2. you can keep her to maturity, which is 14 months, breed her and sell her as a bred female for $ 18,000 to $ 25,000, a bigger return on investment.
3. you can keep her, breed her and let her multiply your herd. In that case, in year 2, you would have 2 bred females worth about 25,000 each, plus the first female you bought would have delivered another baby which could be a male or female. At this point your “herd” is worth approximately $ 50,000.
Following that scenario, the third year you would have at least 5 animals. Both pregnant females would give you babies and you would end year 3 with 7 animals. Most likely, you would then have two bred females, two male babies and one female baby, and your herd would now be worth approximately $ 75,000 or more. If she delivers a male, your return would be less because a male is not worth as much as a female baby. Typically, they are worth about $ 5,000. We have sold very young males for as much as $ 7,000 to $ 12,000, depending on their bloodlines. So, return on investment if you sold him, 5,000/23,000 = 21.7% Not bad, but not as good as with a female. If you assume that you have a female baby the second year, then you could follow the same growth pattern as shown above for a female baby. So year 2 would produce a higher return on investment, and you would then have a 1 year old male. Males mature at 2 √ years of age.
etc.


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