|
Cost Considerations for New Alpaca Owners & Breeders: What Does It Cost to Start an Alpaca Business?
Many breeders start investing in alpacas by purchasing several females and one male. Others wait to purchase a quality breeding male. Prices can vary substantially depending on color, conformation, fleece quality, quantity, age and sex.
A small barn or shelter, built especially to house 15 to 20 alpacas, might cost about $10,000 to $30,000, depending on type, if you contract for its construction. Fencing could add several thousand more dollars to your budget.
If you manage the herd yourself, you'll require an inventory of halters, shears, toenail clippers, lead ropes, buckets, rakes, a medical kit, and other miscellaneous gear. These items would probably add $1000 to your initial costs. Insurance is a consideration, and a year's supply of feed and grain will be required.
If a person were to begin raising alpacas at his own ranch, a typical start-up budget might look like this:
Acquisition of one pregnant female and one young female $40,000
Insurance, one year $1,300
Equipment $1000
Small barn and fences $17,000
One year's feed $700
Veterinarian and miscellaneous reserve $1000
TOTAL $61,000
How to Finance your Alpaca Herd Purchase:
Cash: 50% of all transactions. Some buyers use liquidation of other assets to purchase: CD's, stock market investments, savings accounts, etc. Most buyers go to a bank or farm credit organization and buy using the alpacas and equity in real estate. They obtain funds to purchase the alpacas, and possibly a line of credit to carry operation until the first cria is sold.
Short term financing through seller (no interest): Down payment upon signing contract. 25% with balance over 6 months in 3 installments of 25%.
Longer term financing is available through us. Call us for current rates of interest and terms.
Get Educated! Learn all there is to know about starting an alpaca business at one of Alpaca Jack's Herd Management Seminars. Call for more information 888-US-ALPACA (888-872-5722)
|
