Alpaca: it's the new cash cow
There’s a lot of money to be made in alpaca farming — at least for now. But those who have taken the plunge, many of them Floridians, say they’re happy to have an investment they can hug.
By CATHERINE E. SHOICHET
Published May 27, 2006
[Times photo: Will Vragovic]
Mike Temple holds the head of Dakota to keep him still while his wife, Sheila, uses shears to cut Dakota's first coat.
CRYSTAL RIVER — Mike and Sheila Temple wanted a way to pass the time and earn extra cash after their two sons graduated from high school.
Flipping real estate made them some money, but their hearts weren’t in it. They wanted an investment they could hug.
In 2003 the Temples moved from Palm Harbor to Citrus County, sold their last property and used the money to buy something entirely different: an alpaca.
They now care for 27 of the hug-friendly animals on their 20-acre farm south of Crystal River, and they hope a healthy profit is on the horizon.
“In three years, our alpaca portfolio has quadrupled in value,’’ said Sheila Temple, 53. “Nobody can say that about a 401(k).”
Alpacas are native to the highlands of Peru, where for centuries people have domesticated them, sheared their luxurious fleece and sold it for top dollar. They were commercially imported in 1984, and today there are more than 80,000 alpacas in the United States and more than 800 in Florida, according to the Alpaca Registry International.
That number is growing as more and more Floridians leave the fast life behind and take an interest in these funny-looking relatives of the llama.
New farms are popping up from Tallahassee to Miami. Most are in the central part of the state; the North Suncoast is home to more than a dozen.
Why? Alpaca fleece is warm, hypo-allergenic and flame-resistant, used in pricey designer sweaters, scarves and socks sold at Bloomingdale’s and Burberry. The best-bred alpacas sell for hundreds of thousands of dollars — well above traditional livestock prices. And they’re cute.
Although, they do spit when they’re angry.
Critics say alpacas are just the latest farming craze without a financial foundation to back up the boom, like ostriches and emus before them. But owners of alpacas say that in a state agricultural market traditionally dominated by cattle and citrus, these fleecy faces are here to stay.
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Start-up costs for a first-year alpaca farm — including a pregnant female and a young female, insurance, feed and other farming supplies — amount to about $68,000, according to the association. Many expenses are tax deductible. Well-bred females sell for around $20,000. The best-bred ones tend to rake in more money because of their ability to have more offspring. Recent auction prices have run as high as $750,000 for half-interest in a top-notch male alpaca.
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posted by Jill @ 10:16 AM
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