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The following information comes from my experiences, thoughts, and observations as a "newbie" (less than one year in the business at the time of this writing). I hope, it will give you something to think about.

When talking about investing in alpacas the initial conversations usually center on the purchase price—which is a huge consideration. However, it has been my observation and experience that there are several ways to invest in alpacas, including but not limited to: Financial, Emotional, Time, and Continuing Education.

Financial Investments

There are several expenditures associated with owning and raising alpacas -- some are one time expenses, some are on-going, and others can be voluntary or discretionary.
Purchase
I have observed the look of “sticker shock” and heard “HOW MUCH?”….or similar words and phrases (spoken or unspoken) when someone first sees or hears alpaca price tags. Suffice it to say that alpaca ownership requires a significant financial investment.
Property
If your plan includes keeping your alpacas on your property there are many associated costs that could represent significant investments. Some may include:
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The purchase of property that will accommodate the size and scope of your projected alpaca business operation.
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Improvements on the land—the associated costs of fencing (perimeter and cross), shelters, barns, clearing the land, irrigation, etc.
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Equipment to prepare and maintain the facilities.
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Permits, inspections, special use permits, etc.
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Regular maintenance and upkeep.
Caretaker/Guardianship Costs
When you commit to alpaca ownership, you commit to becoming their caretakers and guardians. If you can’t commit to this role, please don’t consider becoming an alpaca owner. Costs associated with keeping your alpacas on your property and in your care include, but are certainly not limited too, the following:
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Providing proper nutrition through the purchase of quality feed (forage, supplements, etc.)
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Preventative and on-going health care—regular health maintenance program with inoculations and other preventative health measures appropriate to your geographic location. Examples of these costs are:
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A basic First Aid kit—ointments, gauze, bandages, thermometer, etc.
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A supply of various vaccines (including needles and syringes), wormers, supplements, etc. (if you choose to perform the majority of your own preventative health maintenance, or activities that do not require the attendance of a veterinarian).
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A livestock scale -- especially if you have dams and crias.
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Emergency health care—having an “emergency fund” in place just in case you need it.
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Providing appropriate shelter and protection from the elements depending on your geographic location.
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Insuring protection from natural predators through the installation of the appropriate fencing and perhaps the acquisition of appropriate “guard animals”.
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Annual shearing (per animal)
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Fiber processing
Association/Membership Costs
When putting together your financial plans, seriously consider joining national and local organizations and affiliates that support the alpaca industry. Your membership choices will depend on your personal interests and business plan. Take the time to explore the options and choose what you think will work best for you.
Registration Costs/Fees
If you decide to register your animals you must join the appropriate alpaca registry. Keep in mind that there are costs involved whenever you register and/or transfer the ownership of an alpaca.
Breeding Fees
If you intend to add to your herd through a breeding program, there are associated costs involved. Some of those costs include:
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Herdsire (Stud) fees -- if you don't have, or use, your own herdsire
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Transportation and possible boarding fees for dam (and perhaps cria) with outside breeding
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Progesterone/ultrasound tests
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Diagnostic tests if dam is not conceiving
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FTA cards for recording DNA for crias
Transportation Costs
Transporting your alpaca(s) home after purchase can be handled in several different ways. In some instances, the transportation cost may be included in the purchase. If not, you will find yourself having to transport yourself, share expenses with another alpaca ranch, or contract for transportation. Either way, there will be a cost involved.
Attending Conferences/Seminars/Clinics/Workshops
As the industry grows, so do the number and variety of excellent clinics and workshops addressing the numerous aspects of alpaca ownership. See the section on “Education” for more information.
Participating in Alpaca Shows
There are several costs involved in participating in alpaca shows including:
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Show fees: entry fees (per animal), stall fees, farm display space fee, electricity (per stall)
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Pre-show veterinarian health checks
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Micro-chipping
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Transportation
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Food/Lodging
Creating and maintaining marketing material
If you are entering the alpaca business to buy, breed, and sell alpacas you will need marketing material. Some of these are:
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A professional looking web site
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Business cards
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Brochures/flyers etc.
If you plan to show or attend events, you will also need:
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Display banners
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Information for your display booth
There are many costs of alpaca ownership and this information was given to provide a broad overview of expenses and is certainly not all inclusive.

Emotional Investments

When talking with most alpaca owners one of the common themes you will discover is their love for the animals. Once they “fall in love,” they go about learning more about the animals and the many aspects of the industry. Most likely, I have just described your experience.

I have yet to meet an alpaca owner who is not emotionally involved with these magical, mystical animals. I can still remember the physical and emotional feelings the first time I placed my fingers into the soft, dense fleece of an alpaca. I remember the sheer, childlike joy the first time I watched a group of cria “pronk” through the field as the sun set on a warm day and how my husband and I laughed as the “older girls” joined in the fun. That scenario still stops us dead in our tracks, takes us away from what we are doing, and time seems to stand still as we share the enchantment. Words can barely describe my emotions when I saw witnessed the first birth.

I have just described the tip of the iceberg when it comes to the “feel good” emotional experiences of alpaca ownership. And, it is the emotional “upsides” that help alpaca owners survive the emotional “downsides.”

My husband and I refer to ourselves as the “guardians and caretakers” of our alpacas and we take this responsibility very seriously. When we accepted these roles, we opened ourselves emotionally for a great amount of pleasure and joy and for the flip-side, pain and sorrow. Although known for being “easy keepers” these animals do become sick, they can get injured, and in the worst case scenario they die. This can take an emotional toll and you must be willing to accept the risk of riding the emotional roller-coaster.

A common question I have heard from those looking into the alpaca business is “What is the downside?”…which translated usually means this all sounds too good to be true. I tell them that, in my humble opinion, the emotional investment is the biggest downside. Yet, even the downside can have an upside.

I think it is safe to say that most of us enter this business as adults and have already experienced some emotional pain and loss and hopefully much joy and pleasure. Many entering this business have young children. What better way to prepare children for the future than to let them experience life through the complete circle of life to death.

If you can identify with any of what I have said here, then you can understand what I intend to convey when I talk about the emotional investment of alpaca ownership.


Investment of Time

If you are reading this you are already investing your valuable time in learning about alpacas and the industry. You may have already been bitten by the “research bug.” Many people I talk with have said they have been researching alpacas for months or years.

So, what are the various ways you can invest time? Here are just a few:
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Researching
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the industry
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genetics, bloodlines, breeding programs
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breeders
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suppliers
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associations and memberships
HINT: The earlier you establish a filing system for your internet research, the easier it will be to refer back to information you have bookmarked.
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Ranch visits – going on ranch visits yourself and hosting your own ranch visitors
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Attending shows/seminars/clinics/training
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Visiting your alpacas if they are agisted (boarded out)
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Creating and/or maintaining the facilities for your alpacas
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Hands on caring for your alpacas on a regular basis
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Establishing and maintaining accurate records. Caution, don’t let record keeping (or lack there of) get out of hand which can happen very quickly.
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Creating and maintaining marketing material
All of these are valuable and advisable ways to spend your time and I am sure there are many more I haven’t presented here. Remember, this is an emerging industry—there is much to be learned and much to contribute.
Investing In Continuing Education

Coming from a training and education background (my life before alpacas) you would expect me to stress the need for continuing education. Continuing education is just as important in the alpaca business as it is in any other business or profession.

When we begin exploring alpacas we don’t know what we don’t know. If we are seriously researching alpacas and the industry it doesn’t take long for us to realize there is so much to learn.

One of the many, many things about this business that impressed me from the beginning is how much information is available, if we just look for it. The internet has opened up so many avenues to learning and the industry has responded with an overwhelming amount of available information. From the AOBA site to individual personal ranch web sites and all points in between there is a wealth of information available and much of it is absolutely free.

Also available are a variety of conferences/seminars/clinics/workshops offered in many locations. Many of these are sponsored by individual ranches and offer some of the most important topics and top presenters in the industry. Some important topics include neo-natal clinics (all about the birthing process from conception to delivery to post-partum care), alpaca nutrition, alpaca husbandry, how to market your alpacas, the ins and outs of showing alpacas, understanding fiber production (interpreting histograms, how to build a breeding program around fiber production, preparing fleece for processing, etc.), the tax advantages of the alpaca business and how to benefit the most from them, setting up your barn, pastures, and other facilities, how to “handle” alpacas, and many, many more.
I urge you to seriously consider attending these events and to add a continuing education budget allowance to your business plan.
Four Investment Considerations
FinancialEmotionalTimeEducation
We appreciate you taking time to visit our web site and we hope you find the information you need.
We would love to schedule a time to “talk alpaca” with you.
530-620-6033 — dianna@alpacasomersetfarm.com

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