Financial Aspects of Alpaca Ownership
Chapter 1: Introduction
Why do people in so many countries call alpacas, The worlds
finest livestock investment? For any investment to be valuable,
it must possess certain qualities which make it desirable. Gold
is scarce, real estate provides shelter, oil produces energy, bonds
earn interest, stocks are supposed to increase in value, and diamonds
symbolize love. Alpacas share many of these investment attributes.
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 profit opportunities and tax
advantages available to alpaca breeders. Historically, the alpacas
value has sustained ancient cultures, such as the Incas of Peru,
and today alpacas are the sustaining economic force for millions
of South Americans. History has validated the value of the alpaca.
Livestock, or animals raised for profit, was an investment long
before financial stocks were sold on the New York Stock Exchange.
The richest families of ancient times counted their wealth by the
size of their flocks of sheep or herds of cattle. Today, wealth
as a result of livestock ownership is not as common, but tending
to a graceful herd of alpacas can also be an exciting way to earn
a substantial cash flow and live a rewarding lifestyle.
Alpaca breeders enjoy nurturing their animals every bit as much
as receiving the profits they provide. A retired doctor who is now
a full time alpaca breeder had this to say: I would rather
raise alpacas than anything Ive ever done. Breeding alpacas
is a labor of love and very profitable.
Since 1984, alpacas have appeared, almost simultaneously, in several
countries where they had never been seen before. The U.S., Canada,
New Zealand, France, Australia and England have all acquired the
foundation animals for national herds. What makes this animal so
desirable? Bottom line: alpacas are both profitable and enjoyable.
The above text is
an excerpt from the AOBA Breeder's Guide Article: Financial Aspects
of Alpaca Ownership.
2. Who Buys Alpacas?
3. Supply & Demand
4. Alpaca Values
5. Capital Requirements
6. Hands-On Ownership
7. Financial Observations
8. Tax Consequences
10. Creating a Herd
11. Purchase Contracts