Alpacas are very rare in the United States. Breeders have been lucky enough to import quality instead of mass quantity, and are now concentrating on perfecting and expanding their superior stock. The animals available are some of the best worldwide, and they have incredible promise for immediate and future returns. Immediately, there are profits to be made by breeding and selling the offspring, and there is personal satisfaction to be gained by maintaining and showing a beautiful herd. In the future, when we have increased our herds' sizes, and optimized the production of their valuable fiber, we will also profit largely in the textile industry. An alpaca's fiber is quite possibly the world's finest, incorporating all the best qualities of all natural fibers.

So, how do I make a return on my investment?

Alpacas have spread across the farmscape of North America. Owners range from hobby farmers to full-time breeders. Farming exotic animals as an alternative to agribusiness is rapidly becoming a new industry. Traditional farmers also look at alpacas as a means of diversification. No other farm animal can equal the alpaca in offering sound investment returns from easily managed animals on small acreage. The financial returns of owning a small herd of alpacas are generous. Alpacas can provide a satisfying addition to one's investment portfolio with the added benefit of encouraging a healthful lifestyle and family cohesiveness. Every breeder believes there is no greater delight than owning animals that are intelligent, charming and as beautiful as the alpaca. They are truly the world's finest livestock investment.

The factors that influence individual alpaca prices include color, conformation, fleece quality, quantity, age and sex. Supply will continue to be restricted in the near future for reasons, such as: a) alpaca reproduce slowly, b) many breeders retain their offspring, building their herd, and c) importing of animals from South America has been discontinued. The membership of the alpaca registry voted to close the registry to future importations. Any alpacas brought into this country in the future CANNOT be registered therefore, have no value.

Raising alpacas on your farm can offer excellent profit opportunities and tax advantages. If alpacas are actively raised for profit, all expenses attributable to the endeavor can be written off against income. Expenses would include not only feed, veterinary care, etc., but depreciation of such tangible property as breeding stock, barns and fences. These expenses can also help shelter current cash flow from tax.

Alpaca breeding allows tax-deferred wealth building. A small farmer can purchase several alpacas and then allow the herd to grow over time without paying income tax on increased size and value.

However you choose to be involved, there is an alpaca approach suitable for you. The industry is very young and represents a ground floor opportunity. Very few investments have the potential to reproduce themselves every year. Today's smaller breeder can choose to be almost any size in the future. An investor who likes the return alpacas offer, or the lifestyles they provide, can choose any level of investment.