A. Alpacas as a business
1. Supply and Demand
A. Supply (is Limited))
1. Approx. 40,000 alpacas in the U.S. currently.
2. Alpacas reproduce slowly 1 cria/year
A. 50/50 male female ratio
3. U.S. registry is closed to further importation to protect our national herd, this will further limit U.S. herd growth.
4. Mass production, such as cloning or embryo transfer is not permitted by ARI
B. Demand (unlimited)
1. AOBA has reported increased demand every year since the initial importation in 1984.
A. 50% increase in farms in 2002
B. Over 30,000 request for info. In the last 12 months
C. Over 300,000 visitors to AOBA website last year
2. Alpacas are becoming a household name.
3. Alpaca garments and textiles are becoming increasingly known and sought after.
4. More people are looking for a change in their lifestyle.
2. Investment qualities
A. Alpacas are insurable.
B. Alpaca compounding
1. Offspring retained in your herd will produce offspring, increasing your herd.
C. Tax-Deferred wealth building
1. As your herd grows you postpone paying income tax on it’s increased value until such time as you begin selling the offspring.
3. Alpaca ownership
A. Hands on alpaca ownership
1. Where the alpaca owner supplies day to day labor
B. Agistment
1. Care and boarding supplied by someone other than the owner.
2. The owner will make decisions about care, breeding, sales, etc.
4. Tax significance of owning alpacas
A. If alpacas that are actively raised for profit, all expenses pertaining to the business venture can be written off against your income.
1. Feed
2. Fertilizer
3. Vet. Expenses
4. Deprecation of breeding stock, barns, fences.
B. Pet alpacas
1. Alpacas make wonderful, gentle, and loving pets.
2. They are easily haltered and make great 4-H projects
3. Pets are male alpacas that are gelded.