Alpacas as an investment

Alpacas have a reputation as “the world’s finest livestock investment

The Incas regarded alpacas as more valuable than gold. They measured their wealth by the quality and quantity of alpacas they had. When conquered by the Spaniards in the mid 1500s, they were relatively happy to hand over their gold.. The Inca’s called alpaca fibre the “Fibre of the Gods”.

Today there are over 5 million alpacas worldwide. Compared to the massive figures of 45 million cashmere goats and over 1 billion sheep, alpacas still have a long way to go.

The alpaca farming industry is substantially more established in the USA and Australia with the UK not far behind. The numbers are growing globally with Australia announcing that they are going to establish a national herd of 1 million alpacas. In China, after a 10 year government funded research project, they have declared that they are going to create their own national heard of 6 million alpacas. 

Meanwhile here in Ireland, alpacas are still in their infancy with just 200 owners and approximately 2,000 alpacas. Alpacas within Ireland are estimated to grow to between 8,000 and 10,000 animals in the next 10 years.

Prices vary but to give you an idea of rough costs:

Pregnant female alpacas range between €2,000 – €8,000 , depending on the age, pedigree and quality of the animal.

A castrated male, pet or guardian will cost between €500 and €800.

A potential stud male can cost anything from €4,000 upwards to a level that is controlled only by the buyers desire to own a particular animals unique genetics. Some champion males are changing hands for tens of thousands.

Alpacas live for 20 to 25 years. A breeding female will deliver cria up into it’s late teens. Taking just a 10 year timeframe, a female should deliver 10 cria, which based on existing prices, can deliver a return of €20,000 to €40,000.

Investments are usually for a period of 5 to 10 years in order to get the best return.

There is the prospect of growing your herd 5 fold over 5 years and 20 fold over 10 years

It is vital that investors bear in mind that this is a live animal they are investing in and as such, it is subject to all vagaries that life can throw at it, hence we advise that you cover you investment with annual  insurance.

There are numerous investment models but when condensed there are two: either hands on or hands off.

The hands-on model follows the traditional farming approach where you have land, you purchase a breeding stock and you take all the decisions around husbandry and mating etc.

 The second option can be more interesting in that you don’t need land and you don’t have to be involved in any of the hands-on day to day husbandry activities. You can either be an active investor or a pure financial investor. Active investors become involved in taking the key decisions such as mating and sales. The pure financial investor just wants a return for their money and leaves all the decisions and work to the breeder.

To find out more or if you are interested in investing email us at joe@k2alpacas.ie