Today's Market

Around the world, alpacas are in strong demand, and people pay high prices for them. They are scarce, unique, and the textiles produced from their fiber are known in the fashion centers of Paris, Milan and Tokyo. There are excellent business opportunities and tax advantages available to alpaca breeders. Livestock, or animals raised for profit, was an investment long before financial stocks were sold on the New York Stock Exchange. Today, alpacas are outperforming financial stocks, and USA Today proclaimed alpacas the investment animal of the - 90's. In 2004, this is still true, as the average selling price of the alpaca has held constant and shows little sign of falling.

The value of alpaca fleece is the economic underpinning of the future market for alpacas. Breeders outside of South America are beginning to organize wool co-ops for the commercial processing of the fleece. Domestic fiber is often sold to cottage industries that revolve around hand spinning and weaving. Most alpaca ranchers readily sell their fleece for $2 to $5 an ounce to local artisans. Each animal will produce five to eight pounds of fleece a year. The Alpaca Fiber Cooperative of North America, endorsed by the Alpaca Owners and Breeders Association (AOBA), provides a commercial outlet for all breeders.

There is a very strong market for alpaca product internationally with supply always falling well short of demand. And as more alpaca products appear on the market, the demand for more gets stronger. This growing demand is behind the increase in alpaca herds being established around the world.

As demand for quality fiber increases, breeders from around the world search out sources for improved genetics. The current alpaca industry is based on the sale of this quality breeding stock, which bring premium prices. Those animals known to possess the best genetics will be supplying an international market for years to come.

The U.S. is positioned to be that supplier. We are currently producing the finest breeding stock in the world. There are 2 primary reasons for this. The first major driver of our success is our breed registry, The Alpaca Registry, Inc. (ARI). And the second is the growing employment of classic breed improvement programs.

Not all breed registries are alike. ARI is a closed registry with DNA verification of all registered animals. These two components are the foundation to its effectiveness and what make it an invaluable tool for guiding breed improvement programs.

Currently, the range of value for females is between $12,500 and $40,000. Recent 2003 auctions had females selling from $80,000 to just over $100,000. Young, unproven high quality stud prospects routinely sell for between $7,500 and $25,000, and the highest quality males with unique characteristics or exceptional offspring on the ground have sold in excess of $250,000.

Those who now direct their efforts into alpaca breeding will receive top prices for quality animals and, in the long term, increasingly generous returns for alpaca fleece from a proven luxury fiber market.

Because of desirability of their rare fleece, alpacas are truly the World's Finest Livestock Investment. But they also have qualities that make them the most ideal farm animal. 

• Alpacas are charismatic and endearing making them superbly marketable.
• They are small and gentle, and easy to manage, which appeals to women, the fastest growing group of entrepreneurs.
• Alpacas can be raised profitably on a small acreage, even as few as five acres.
• They are sturdy, resilient animals and easy to raise for novice breeders with little animal experience.
• They are great with children making the alpaca business a good candidate for a family to run together.

The current alpaca market is exceptionally strong even in the wake of September 11. When other industries and stocks faltered, the alpaca industry grew at an incredible rate. The total AOBA membership was 2152 on December 1, 2000. In 2001, 685 people joined AOBA and 1,096 joined in 2002, an 83% increase in 2 years. More people have discovered alpacas and joined AOBA in the last 3 years than in the previous 11.

The world has quickly recognized the value of the alpaca and its amazing fiber. Countries around the globe have embarked on a robust growth initiative. In the US, the alpaca's rise from obscurity to its place in pop-culture is due in large part to the Alpaca Owners and Breeders Association (AOBA). Through its marketing and educational efforts, they work to increase public awareness of alpacas and alpaca products. As a result AOBA continues to see ever increasing numbers of new members. The areas of research and development, an essential in any new industry, are also being addressed. The Alpaca Research Foundation and the Alpaca Fiber Cooperative of North America, Inc. continue to break ground in the areas of Camelid health and fiber research, addressing processing, manufacturing and marketing.

By any measure the current alpaca market is vibrant and healthy. And the prospects for the future are equally rosy. The U.S. Alpaca Industry is squarely positioned to be a world leader in the alpaca fiber and genetics market.