When people consider putting up a business of their own the last thing that comes to mind is Alpaca farming. Those who do not have any experience in raising animals and are not familiar with any animal husbandry or alpacas may even question the practicality of investing money for this kind of business. What they do not know is that there are many financial benefits in alpaca ownership and it is really not that expensive putting up an alpaca ranch.
Once you have decided to venture into the business of alpaca farming, you would need about $55,000 and you can already start breading and raising alpacas in your own ranch or property. If you think about it, this amount is relatively cheaper compared to other start-up businesses and franchises. Moreover, unlike other businesses, you will get to enjoy very quick investment returns after only a year or a year and a half if you are equipped with knowledge and able to give proper care to the animals.
Alpaca Profit Opportunities
Owners of alpaca usually enjoy about 30% to 75% return of their investment every year in to the business. This percentage is definitely higher than other businesses where 10% returns are already considered as a great success. A female alpaca can only produce one cria per year which is why the population grows slowly, which this is not a bad thing because the breeders market is likely to persist for the next twenty years.
Female alpacas can be quite expensive that a quality bred female costs about $18,000, and if bred properly with a quality male, her cria will most likely cost even more than her. Also, a female alpaca can often be bought in packages at a discounted rate. If you purchase two or more alpaca, you would typically get 20% to 30% savings compared to the cost of purchasing a single female. Because of this, you can already begin breeding alpacas with two quality females for as little as $30,000 only.
The purchase of alpaca is actually tax deductible. $112,000 worth of alpaca purchases were written off in the year 2007 and any amount that is over $112,000 can be deducted in the succeeding years. This associates to savings of up to $50,400 in a tax bracket of 45% which makes the effective purchase price of just $61,600. What most people don’t know is that you can even insure your alpacas from sudden death or against theft.
Alpaca farming could either be a part-time or a full-time business depending on the size of operation that you have in mind. There are alpaca owners who still maintain regular day jobs while caring for their alpacas at night or after work hours. But there are more alpaca owners who have entirely quit their jobs and devoted all their time caring for alpacas as they say that the profit is more than enough that they are able to live by it. Raising alpacas, whether in a small or large scale, will prove to be very profitable.