Alpacas - Supply and Demand

One of the first questions that we asked in our alpaca quest was the issue of supply and demand. Is the market viable and for how long or is it a bubble? Here is some information which may be helpful to the reader who is curious about the viability issue.

The market for alpacas is moderated by the effects of a relatively slow herd growth. Early in 2004, the total population of registered alpacas in North America accounted for about 50,000 in the United States and about 15,000 in Canada.

Due to the following reasons, supply will continue to be limited in the near future:

• Alpacas reproduce slowly. A female generally breeds for the first time between 18-24 months of age. The pregnancy is for 11-12 months, and there is almost always only one cria;
• Many breeders retain their offspring to build their herds;
• The limited size of the national herds in each country outside of South America will restrain growth to a small degree; and
• The U.S. alpaca registry is closed to further importation to protect our national herd, which will further moderate the U.S. herd growth.

Meanwhile, demand for alpacas has increased dramatically every year since their introduction outside of South America in 1984. Not only are there more breeders entering the alpaca market each year in established countries such as Canada, New Zealand, Australia and the U.S., but there are more countries worldwide also actively establishing alpaca herds. This growth is sure to continue as the alpaca gains international recognition.