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Economic Snapshot
The National Herd
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| There are approximately 16,000 animals in the UK at this present time, representing about 800 breeders ranging from herds of a couple of geldings to herds close to a thousand. |
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| The demand for the animals is greater than the supply a factor which is reflected in the price of the animals. |
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| The average prices at the moment for good female alpacas in cria (pregnant) are between £3,000 - £10,000 , depending on the age and quality of the animal.
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| A castrated male will cost anything between £500 - £1,000. |
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| 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. |
Selective breeding
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| Through the process of highly selective breeding within this fledgling industry the quality of the stock is improving in leaps and bounds, a factor which is reflected in the increasing price of second and third generation offspring. |
Investment
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| The chances are that the offspring of any healthy female alpaca will fall into a 50/50 male to female ratio. Hence an investment of £4,000 - £10,000 now in a breeding female could over a ten year period produce, say, 5 female cria and 5 male. Assuming that prices did not increase or decrease over this period and one sold all the offspring, males at £500 - £1,000, females at £5,000 - £10,000, this one female could theoretically produce a return of at the low end £27,500 and at the top end, £55,000
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| Minus: Top stud fees of £1000 pa say £10,000.
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| Minus: Husbandry costs of say £500pa ,say £5000.
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| Minus: Insurance at 4% av.£400pa. ,say £4000 |
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| Estimated return at the low end, £8,500 and at the top end £36,000
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| Estimated profit based on low end figures and sale of all offspring approximately £21,000.
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BEST LAID PLANS?
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| 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 the annual insurance. The above is not meant to be a definitive model but a snapshot of the basic economics of investing in one alpaca. It takes no account of infant mortality or other problems nature may throw at it.
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WARNING: Alpacas have a tendency to be an addictive and highly contagious investment for those who prefer to see their money running around a paddock!
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