Purchasing quality breeding stock gives the greatest return.  The pregnant female can actually give back her value at the birth of a female cria!  Quality male crias will usually have a lesser value, but can be sold as "junior herdsires" for around $10,000 and up. (The price of the "in-tact" male alpaca can run from around $4,000 up to $500,000!)
Whether purchasing breeding stock or pet quality geldings, the alpaca will more than pay for its upkeep!  The cost of maintaining a healthy alpaca for one year is less than $100.  This estimate includes the expenses of de-wormers, feed, minerals, and yearly vaccinations.  The alpaca is sheared in the spring for its health and comfort, but the wool harvested is your product!

In the Southeastern United States you can expect a fleece weight averaging 5 to 6 pounds.  About 3 pounds will be from the blanket area (prime fleece) and is valued at approximately $40/lb. ($2.50/oz.)  The value of the wool is increased by the stages of processing.  These are approximate values:
  Raw "prime wool" (skirted)    =$2.50/oz.
  Rovings for spinning               =$6.00/oz.
  Yarn (processed)                      =$7.00/oz.
  Yarn (handspun)                       =$8.00/oz.+
  Knitted, crocheted, woven     =$11.50/oz.+

The remaining wool is considered second or third quality, but is still alpaca wool and is very valuable!  This wool can be made into rovings for hand-spinning, or can be used as a nice warm batting material for quilting.  It also can be felted and/or used in many crafts such as hat making, rugs, and other artwork.  The value of this wool will be around $1.00/oz. for unprocessed and around $3.50-$4.00/oz. for batting or rovings.

                               EXPENSES (Fiber Processing)

The cost for processing the fiber varies only a little with each wool processing mill.  Here are some approximate prices:
  Batting or rovings                 =$13.00/lb. ($0.81/oz.)
  2-ply yarn                                =$32.00/lb. ($2.00/oz.)

You can do the math!  These wonderful creatures we call "ALPACAS" are worth their weight in gold!

Alpacas can provide excellent tax savings.  NEW deduction for 2008 is $250,000.  (According to IRS code 179 ) If you complete analpaca purchase before December 31st, you can write off 100% of the cost up to $250,000. If you choose to finance with 30% down payment,your tax savings may be equal to the amount of the down payment.