Alpaca Industry

Figures from 1995

Industry: Alpacas

1. Description of Product:

This industry is currently committed to the breeding of Alpacas for the purpose in the long term of developing a fibre industry from Alpaca fleece production.

2. Location of the Industry:

By conservative estimates there are 15-20 growers in the region. Of the major breeders three are located in the Benalla region, one in the Shire of Indigo, one at Yarrawonga, one at Talgarno and one at Tallangatta. All of these growers would have between 30-50 animals. Other growers would have on average 5 animals. The average herd size throughout Australia is 4.5 animals.

3. Employment and Labour Requirements:

a. Number of Producers:

15-20 producers, almost all with alternative sources of income. Seven major growers, 8-13 small growers.

b. Number Regularly Employed:

For a herd size of 30-50 animals, one full time person is required. Less for smaller herds.

c. Harvest Requirements

For these comparatively smaller herds there are no seasonal labour requirements.

4. Annual Production:

At this stage of industry development production is heavily biased towards breeding of animals. In North East region 30-50 breeding animals are being sold, other animals are used to develop herd size and potential. Each animal (250-300 in region) currently produces 1-2 kg of fleece. Hence fleece production of up to 600 kg, but only 50-200 kg is being sold.

5. Value of Product:

Good breeding female sell for $20,000 - $25,000 each and as 40 breeding animals are being sold annually , the gross value to the industry is $1,000,000 pa. The value of fleece on the hand spinner market is $60/kg. Given 200kg is sold (remainder stockpiled) the gross value of fleece production is $12,000 pa.

There is some ambivalence about including value of breeding as part of gross value of production. In this instance it has been included.

6. Production Trends Over the Next Five Years:

a. Projected:

Six of the major producers are producing 15 breeding stock per year and this is a steady annual supply. The production of fleece is expected to increase substantially, especially when the processing of the fleece is put onto a commercial footing.

b. Potential:

The potential in the industry in terms of numbers of stock is based on a long term breeding program (18 months gestation) which is predictable and steady. Supply of fleece is also predictable and industry development is based on steady supply.

There is a lifestyle appeal of the Alpaca for small operators, as an alternative source of income. The Alpaca does not require advanced husbandry skills, and as stocking rates are similar to sheep, requires a relatively small acreage.

The fleece currently fits into the niche market category - a luxury fibre, and prices reflect that market position. The grower network is well resourced with professional skills, which have provided the basis of researched industry development.

* Since this report was prepared there has been a growing demand for alpaca wethers used to guard lambs against attack by foxes. Substantially improved lambing rates have been reported.

Extracted from the Bright Report