General Information
Welcome to Kendall Creek farms and our world of Alpacas. We would like to share some information with you about alpacas. Our alpacas are not only a treasured part of our family’s life, but are also a lucrative livestock investment. There is no way that we can address all of your questions here, so please give us a call to arrange for a visit and answer the rest. Being ‘hands on’ at the farm is the best way to learn about alpacas.

Al whatas?
Alpacas. The mother is called a dam, the father is called a sire, and the baby is called a cria. Cria is from the word creation in Latin America.

Alpacas are camelids, and therefore distantly related to camels. A little closer on the list of relatives are llamas, vicunas, and guanacos. They are native to Peru, Chile, and Bolivia in South America and particularly to the Andean Mountain Ranges of these countries. In South America, alpacas have been utilized for their luxurious fiber for centuries. But even so, the total South American alpaca population is less than 4 million animals. This means the fiber supply is limited and considered a specialty.

The first alpacas were imported to North America about 18 years ago. The first imports were virtually all from Chile, but over the next 12 years, Peruvian and Bolivian alpaca were also imported. In 1998, the registration of imported alpacas was closed by ARI, the sole recognized alpaca registry in this country. Through blood DNA testing, each registered alpaca is identified and this information is used to assure identification, proper animal husbandry, and to maintain the integrity of the North American alpaca population.

The current alpaca population in the United States is less than 80,000. This includes animals from all origins and of both the Huacaya and Suri genotypes. The Huacaya (wha-ki-ya) alpaca is noted for its’ fluffy teddy bear look, while the Suri (sir-ee) is distinguished by its’ long ‘dreadlock’ fiber. Although there are about twice as many Huacaya alpaca in North America as there are Suri, they have roughly the same value and are equally sought after.

Where do you keep Alpacas?
Generally, if your land will keep any kind of livestock, it will keep alpacas too. We have seen alpacas kept virtually in the front yard of homes as long as zoning did not preclude it. Preferably, they need a nice grass field that stays well drained. Because they are soft-footed and not hoofed like most livestock, they are very easy on the land.

The fencing required is not so much to keep the alpaca in, but to keep out the neighborhood dogs or coyotes, which are their main predators. Alpacas will not challenge a fence. A four-foot ‘no climb’ or 8-strand high tensile arrangement is adequate for females. We feel there a two exceptions, one is when you have active herdsire across the fence from open females. Hormones take over and a taller fence may be necessary. The other is the perimeter fence where protection from intruders is necessary. Use at least a five foot fence on the parameter.

You can keep about 10 alpaca to an acre of decent pasture. However, we have seen alpaca raised solely on hay and feed. Alpaca do like to run and play, so we feel that the more you can stick to the 10 or less/acre, the better. We provide boarding facilities for those who don’t have their own place or who are in the process of improving their facilities.

Alpacas like to be out of doors for the most part. A barn is not required but is a convenience for the humans that need a place to store hay, give medications, and talk to visitors. All the animals need is a three-sided enclosure for some protection from the wind or a driving rain. Even if you do have a beautiful new barn, you may still desire a separate shelter for the alpacas.

How much time to devote?
Alpacas are small (100 to 180 pounds) livestock that usually require very little care. There is nothing extraordinary that must be done for them. Daily, they need fresh water and hay. Also, if they were in an enclosed barn their dung piles would need daily attention depending upon the space provided. Monthly, they require a de-worming treatment. Two or three times a year they need their toenails trimmed. Annually they need vaccinations and shearing.

Alpacas are very hearty and are not susceptible to very many diseases. Once you get to know your animals, it is very easy to tell if they have a problem and need attention. We perform almost all of the required veterinary procedures on the animals ourselves. A few times per year we have to treat an animal for one thing or another, but we have owned many types of livestock, and alpacas are the easiest to care for. Statistically, about 5% of alpaca births require vet assistance. Our experience mirrors that.

The fact that they are so wonderful to be around also creates a lot of barn time. Our experience is that a herd of 10 requires about 30 minutes a day to care for and observe for potential problems. The reality is that we spend significantly more time than that at the barn and in the fields by choice. These animals provide a great excuse to be on the farm, fix up the farm, walk around the farm, etc. They truly assist you in creating the lifestyle so frequently advertised.

What do alpacas eat?
Alpacas are grazing animals and can eat most native grasses in the U.S. Remember, they originate from high in the Andes where the grass is in short supply. The fact that they are ruminants (have three stomachs) means they are very efficient at converting low quality grazing into plenty of nutrients. A horse or cattle pasture is plenty for an alpaca. In fact, a cow eats ten times as much as an alpaca. Alpaca also do not tear the grass from the ground, but rather pinch off the new growth between the top pallet and the bottom teeth.

Good grass hay that is not mature is also needed for alpacas. We provide free choice hay to the animals at all times even though we have great pastures. They like and need the variety and in the winter grazing is very limited in our region. We only provide alfalfa hay to the lactating dams, as too much protein can cause some problems. We also feed each of our alpacas about a cup a day of specially formulated pellet feed that contains supplements they need that are not typically found in our area. This can be purchased at most local feed stores.

Due to the camelid ancestry, the animals do not require very much water. They may drain the bucket one day but leave it full for several days after that. But, clean fresh water should always be provided.

Everything that eats, poops

So true, but at least they do it neatly. Alpaca tend to place their dung very carefully in just a few piles in the pasture. If the pile is not cleaned periodically they will start a new one. It is important to keep the piles in control for several reasons. Generally it is a place for other critters you don’t want to raise, and they can cause health problems. Also, alpacas will not eat the grass in the area around the dung pile and if too many dung piles are created, you will run low on pasture.

Alpaca dung is not perfume, but is far less odoriferous that most other livestock. I remember when we brought our first animals home and a few weeks later we heard from the neighbors. Several came over, and after the usual pleasantries, they admitted to their initial fears that strange noises and smells would overcome the neighborhood. They all commented that those fears were unfounded and started asking about the manure for their gardens. It is tremendous fertilizer and weed seed free after having gone through three stomachs.

What kind of ‘personality’ do alpacas have?
Probably the most frequent comment from a new acquaintance to alpacas is, aren’t those the ones that spit?” Well yes, and no. They will spit if provoked but that usually happens between alpacas. Spitting is mostly used to display dominance in the pecking order within the herd. This happens at mealtime and when one of the cria gets a little too bold with an older member of the group. Humans are rarely the intended targets of spitting.

The other occasion for spitting is when a male with intensions approaches a bred female. In this case the spitting is used to let him know that he is too late and the advances are unnecessary and unwelcome.

Alpacas are in no way dangerous. They cannot bite because they do not have front top teeth. They can kick, but because of their soft pads, the impact usually goes unnoticed. The most aggressive maneuver of the alpaca is rearing on the hind legs and striking with the front feet or chest butting. We have personally only seen these behaviors from animals protecting the herd from a stray dog. We take our alpacas to fairs, libraries, hospitals, nursing homes, and churches all without incident.

Alpaca are very smart. They learn their name quickly, but usually respond with the cat attitude versus the dog response. They are very easily halter trained and enjoy new surroundings when at halter. For this reason, they travel very well and show well in the ring when they get there. We have taken alpacas for rides in the family van and SUV without incident. Their main form of communication is a humming sound that changes tone with the point trying to be made. After a short time, you can learn most of their language.

How much does an alpaca cost, and why?
Value is somewhere between the eye of the beholder and the holder. A proven (proven to bear cria in the past) female typically sells for between $15,000 and $25,000. This is a female of fine quality that will significantly contribute to the value of the U.S. herd with this years’ cria. Maiden, older, and lesser quality females can be purchased for $10,000 or less. Superior show winners with impressive bloodlines can sell for $40,000 or more.

Breeding quality males vary widely in price depending upon their bloodline, show history, quality of cria produced, and the presumed ability to generate breeding fees in the future. Most breeding quality males can be purchased for under $40,000. However, the current record price at auction is $750,000.

What would possess someone to pay that much for an alpaca? Well, consider that:
· Alpacas are rare
· Demand for alpacas exceeds the supply
· Artificial insemination is impractical
· Females almost never have twins and the gestation period of an alpaca as about 11 ½ months
· Females can produce throughout their 20+ year lifespan
· Imported alpacas can no longer be registered in the U.S.
· Many owners are in the process of building their herd size and therefore not selling their annual production
· The fiber and conformation qualities of the U.S. herd are improving due to controlled breeding programs
· Since the beginning of the alpaca industry in this country, the average prices have risen. The maximum prices have increased dramatically.

A female purchased for $22,000 producing cria each year selling for $15,000 as juveniles has quite the return on investment. Even with 15% devaluation in the market during this time frame, the investment is returned with the birth of the second cria. But the fact is, alpaca prices are increasing, not decreasing. A premium herdsire commanding a $2500 breeding fee can generate $25,000 per year ‘with his eyes closed’. True, the alpaca is an expensive livestock to purchase, but the economics are easily justified for that very reason.

Another critical financial consideration is the tax implications (savings) of alpaca ownership. Because alpacas qualify as a capital asset, they are depreciable, can allow for a large first year business expense deduction, and are taxed at a lower rate than regular earnings when sold. This coupled with the beneficial treatment of both expenses and capital needed to support the farm further increase the economic benefits of alpacas. Talk to your accountant or tax advisor and find out exactly how this will affect your particular situation.

It is important to understand that investing in alpacas has risks. All investments do; all livestock do. Alpacas are not a ‘get rich quick scheme’, it takes patience to realize gains and you should be prepared to endure for the long haul. Construct your business plan carefully and seek the assistance and experience of existing breeders to assure you are using ‘real world’ information.

FIBER
Fiber is the ‘wool’ that the alpaca are famous for, and the ultimate commercial reason for raising alpaca. The fiber of alpaca is often compared to cashmere and should not be confused with typical sheep’s’ wool. One touch of an alpaca garment, and you will agree that there is almost nothing else as silky and soft to wear. They even make bikinis from alpaca. Try that with wool.

The alpaca’s fiber does not contain lanolin that needs to be chemically stripped from the fiber and therefore is able to go straight from the animal to the spinner with only a minimum of effort in cleaning. Many hand spinners are alpaca owners for this very reason. The commercial processing of alpaca fiber in the United States is still many years away. There are simply not enough American alpacas to supply the industry. In order for this to take place, there will have to be roughly 100,000 pounds of a particular color. With the average annual fiber production of approximately 8 pounds per alpaca per year, you can see that we need a few more animals to achieve commercial status.

In the meantime, fiber is marketed in one of several ways. The ‘do it yourself’ method is one way. Since the processing of the fiber can be accomplished by simply removing the vegetable matter and second cuts (short fibers), hand spinning your own fiber is commonly practiced. Many alpaca owners are those with just two or three alpaca they have for there own fiber needs. For those with more fiber than they can process or are not inclined to process their own, many sell the fiber to local spinners and weavers through guilds. This network of spinners and weavers often purchase fiber in various amounts.

Larger farms typically send their fiber to one of several Co-ops in North America. There are several and they handle the fiber in different ways. One gathers the fiber for all the members until they have enough to export the material to Peru. The fiber is commercially processed and garments are returned to the members in exchange for your contribution after being assessed for quality characteristics. You will not necessarily receive garments made from your fiber since the fiber has been pooled to achieve the necessary quantity.

There are also Co-op’s that have formed to process the fiber here in the United States. In some cases you can have garments made from your actual fiber and specify the garment to be made. There are also several independent processes in the U.S. that provide the same services. These are usually ‘for hire’ situations where you not only contribute the fiber, but then also pay to have the garment produced. The pricing typically works out to a wholesale type price so that margin can be generated during your retailing of the products.

There are many variations of the above as an outlet for the fiber and finding a symbiotic outlet for yours is the key until true commercial processing is applied in the U.S. Prices vary widely for the fiber based on the demand in your area. Our experience has ranged from giving the fiber away to local weavers as a means to introduce it to them, to selling it for $32 per pound. We then receive garments from the processors for our small retail store at the farm.

So what are we looking for in quality alpaca fiber? This is very important to the breeder and educating yourself in this regard cannot be over-emphasized. Eventually, when fiber is the dominant reason for alpaca ownership, you want to have highly desirable fiber. For now let’s just talk mainly about the Huacaya alpaca, although many of these same attributes apply to the Suri as well. You should observe for the following main characteristics:
Density and uniformity of density – obviously the more dense the fiber per square inch, the higher the yield from the animal come shearing day. After seeing and feeling a few alpacas you will be able to tell the dense from the not so dense. The fleece will have a more closed, spongy feel to it. This feel is one of the characteristics of the overall ‘handle’ of the fleece. This density should also be uniform throughout the blanket of the fleece. The blanket is defined as the fleece from the shoulders to the rump and around the flanks to the belly.
Fiber length – again, an obvious factor in the volume you get from an animal on shearing day. This is referred to as ‘staple length’ and longer is better.
Fineness – another aspect of the overall handle of the fleece, where finer is better. The finer fiber is more suited for the more luxurious garment applications and therefore is generally more valuable.
Crimp – this is a reference to the wavy appearance found in higher quality huacaya fiber. There is tight crimp, loose crimp, bold crimp, and the more you talk to folks, the more kinds of crimp you will hear about. Basically crimp is good. It gives the fiber an improved elastic quality that is natural in alpaca fiber. The fiber is resilient and has a memory that allows it resume its natural shape after being stretched. It also reflects density since the fiber is more compact than straighter fiber. Crimp is usually more prevalent in the lighter colored animals.
Luster – this refers to the shine or brightness of the fiber. The more lustrous the better regardless of fiber color. The lighter colored animals are typically capable of more luster than darker animals.
Coverage – this is reference to having good fiber coverage all over the alpaca’s body including the legs, chest, neck, and face. Although the fiber harvested from these areas is not valued is highly as the blanket, you want it to be as prevalent and high in quality as possible. On quick glance, it also gives you an indication of the overall fiber characteristics of the animal.

So this is easy right? Just go out and get yourself all the, long, dense, fine, crimpy, and lustrous animals with hair growing on their toes as you can find, and start yourself a farm. Well, there may be a little problem. Not many animals have all these characteristics, and when they do, they are costly number one, and hard to get the owner to turn loose of number two. But there is good news. Breeding can readily influence alpaca fiber quality.

Husbandry
When breeding an alpaca of ‘lesser quality’ with one of ‘higher quality’, an alpaca somewhere in between is almost always produced. This is particularly true regarding fiber quality, and to a lesser extent concerning the more physical attributes such as bone structure and bite.

Because of the prominence of field breeding for mass production in South America, many of the original imported alpacas were of marginal quality by today’s U. S. standards. Luckily, most importers realized that the future of the U.S. alpaca industry was held in the ‘quality’ of the animal. Over the next dozen years, the importers hand selected many of the finest quality alpacas that Chile, Peru, and Bolivia had to offer. The American alpaca was born.

At Kendall Creek Farms, we are not hung up on Peruvian, Chilean, or Bolivian heritage. We want to breed alpacas for the best improvement in characteristics we can achieve given a particular alpaca’s existing characteristics. We have years of experience choosing alpacas and the breeding program for each one in order to maximize the quality of a particular animal. Of course we cannot predict the outcome of breeding. But our experience has lead us to an understanding of good husbandry practices and a show ribbon attached to virtually all of our alpacas.

As we said in the beginning one thing is sure, we cannot possibly answer all the questions you may have about alpacas within this communication. We have a lot more to share with you and would be glad to do so. If we cannot answer your questions immediately, we will get the answer and get back to you, or put you in touch with those that can. We are in direct contact with the foremost camelid veterinarians in the U.S., and have been studying these animals for over ten years. Answers are available.

Investing in Alpacas
Looking for a few good reasons to become an alpaca rancher?

There is only one first reason to join us in this industry.  That must be the fact that you absolutely love these animals and truly enjoy being in their presence and caring for them.  We believe that although there are many good reasons to own these creatures, this is first and foremost.  We feel this common denominator is why the term ‘lifestyle’ is so often referenced when you discuss alpacas with other owners.The next reference should be toward investment.  This category includes a variety of subjects that are all favorable reasons to become an alpaca owner.  A few of these are listed below and as a savvy investor; you will recognize many of them immediately.  The fact is that alpacas qualify for section 125 tax deductions and therefore all direct expenses related to owning alpacas are tax deductible.  This includes but may not be limited to: 

• Veterinary care
• feed and hay
• breeding, including transportation to and from
• all related office expenses including your home/farm office
• real estate taxes
• farm maintenance and aesthetic improvements
• your farm may qualify for farm service grants and financing programs for such improvements as fencing, running water, electrical service, and pasture improvements
• vehicles such as truck, tractor, and ATV’s
• farm promotional expenses including advertising, marketing,

Alpacas are being readily promoted as the ultimate livestock investment opportunity.  If you are considering alpacas as in enterprise, you should look very carefully at the implications of profitability, cash flow, and long-term investment potential as they apply to your specific situation.  No two investors are the same.

benefits without the need for facilities of your own.  Are you going to purchase fewer top end breeding stock animals, or more numerous animals of a lesser quality that you will breed for improved quality?  Both methods and their variations work well and the question will be how does the investment fit your plan.

Plan you say?  Yes, you should have one prior to buying your alpacas.  Ask us about helping you develop a plan if you don’t have one and we will be glad to help.  It is as important as the animals you buy and whom you buy them from.  The Alpaca Owners and Breeders Association have a very useful publication entitled “Financial aspects of Alpaca ownership” that will also help you determine how to ‘fill in some of the blanks’.  If you help us understand what you hope to achieve by alpaca ownership, we can help you formulate an ownership strategy to fit.

If after further investigation, you determine to continue your alpaca quest, it is imperative that you be able to answer all of the following questions:

• Am I entering alpaca ownership for personal fiber consumption or alpaca production and investment?

• Are you prepared to seek out all possible information concerning alpaca care, husbandry, and marketing or do you plan on having these aspects provided by the seller or others?
• What will be your market for alpacas?
• Have you planned for and considered the time required to care for, produce, manage, and market your herd?
• Based on your investment strategy, how often will you need cash flow and what are your contingency plans.

Although we are not financial planners, we know about virtually all of your questions because we were first time buyers four years ago.  We  are prepared to help you.  It is a big part of our farms service to help you get the most out of your ownership.  As a small farm operator, we have the ability to provide you with the personalized service that you may not have access to otherwise.  Come see us, we will talk to you openly and candidly about alpaca ownership.

Sincerely,

CHRIS AND LORI WORKS