Farm Business Opportunity

The alpaca business has been referred to as "The world's greatest livestock investment". I prefer the wording " Farm Business Opportunity". Although alpacas have been a great investment for many people over the years the word "investment" implies a static entity; something that just sits there and makes money. Most people that are successful in the business know that it requires time and energy: time and energy that can be very rewarding both financially and emotionally.

The work involves firstly looking after the animals. Most people love this part of the business and it is probably the main reason they get involved with alpacas in the first place. Many find it therapeutic, a real change from the stresses and strains of working life. Others find it a great way to get kids involved, a family activity that has an educational component.

The work activities can then expand into marketing and promotion. Showing your animals is a great way to promote. This process can be an exciting and very social experience. Other time commitments may be working your web site, having groups visit your farm and developing and implementing an advertising campaign. It all boils down to running a farm business but with returns that are generally not associated with farming.

Fiber Industry

The purpose of the alpaca industry is to produce fiber. Alpaca is an exotic fiber just like Cashmere and Mohair. Not much alpaca fiber is produced; world demand is strong and prices are relatively high. This situation has occurred with very little promotion. Supply can be variable because the worlds biggest producer, Peru, can have years where a great percentage of its crop of alpaca babies are lost due to bad weather. There is huge potential on a world and local level to increase the use of alpaca fiber. Right now there is no correlation between the price of alpaca fiber and the cost of the animals in North America. At this point in the evolution of the industry, it is mainly a breed stock business. We simply do not have the numbers of animals to maintain a fiber industry. Experts reason that it requires 250,000. to 500,000. animals in Canada to produce enough fiber to supply mills with the quantities necessary to be successful. Until we get to that level every breeding animal is valuable.