Farm Diversification

The market for the valuable fibre is still being met by imports, so there is room for substitution provided there is a commercial quantity and the home supply of equivalent quantity. The fibre is highly sought after by the fashion industry for the light, strong and very warm nature of this semi-hollow fibre. Alpaca is used for many products such as clothing , duvets, rugs, soft furnishings, etc and there is a strong demand in some regions for different fibres from hand spinners and weavers as these fibres have greater design attributes.

The UK fibre market is still small but a new co-operative initiative, UK Alpaca, has been established to collect and processing and process Huacaya alpaca fibre. There are also a number of other options for use of the fibre that can significantly add value to the raw fibre. Examples include: putting your fibre to a small mill and getting back yarn for resale, submission to a smaller scale fibre co-operative or entering into a contract to have your own fibre products made by (for example see John Arbon Textiles). Despite growth in the British alpaca herd the BAS report that alpacas are still in short supply which is keeping the price of breeding stock inflated.

The main market is in the sale of breeding livestock to people establishing or expanding herds although there is also a market for sale of alpacas (often castrated males) as pets. Most alpaca owners are concentrating on breeding and improving the national herd such that when it is of sufficient size a large scale alpaca fibre industry will become feasible. "The attempt to increase the UK herd size has led to a vibrant market for the sale of breeding females (the 2003 BAS champion huacaya female sold for £15,000 at auction). So there's serious income to be had from the sale of high quality animals. The high initial capital outlay for the animals can be repaid as the breeder's herd size increases over the years." Gerry Thompson, Coire Alpacas (2004).

A number of Alpaca breeders report that the annual running costs of an alpaca can be offset by the returns from fibre sales. Feed: Average coarse sheep mix, hay ad lib. Similar to sheep on a per kg bodyweight basis, ie 110 kg Llama feed requirements = 65 kg ewe x 1.69. Things to be considered include:

• Winter hay: 1 - 1.5 bales per head per month
• Supplementary winter feed: 0.25 - 0.5 Kg per day
• Veterinary provision and 6 monthly prophylactic treatment
• Shearing, teeth and feet trimming
• Pasture
• Re-mating (see alpaca breeders for stud fees)
• Insurance (against death and theft) ~3.5% value

Yields:
Llama males 1.5 - 2 kg fibre/annum, shorn once a year, females clipped once every two years. Alpaca fibre is finer than that of Llamas (20 - 30 microns in diameter) and there are 22 natural occurring colours, including true black. The fibre also takes dye well and can be blended with other fibre/wool to increase textile possibilities. Alpacas will produce between 2.5 and 5.5 kg of fibre per year.

Prices:
UK Alpaca (2005) are offering £6.50/kg for baby fibre, £4.50/kg for fine fibre and £0.75/kg for baby fibre. Alpaca yarn can sell for around £15 per 0.5 Kg Sale of breeding stock and wethers: see prices in Capital Costs

A number of alpaca breeders and llama breeders offer courses on a variety of issues surrounding the handling and husbandry of alpacas and llamas.  Examples include:

Through the Scottish Rural Development Programme (SRDP) 2007-2013 funding is now available for rural businesses throughout Scotland for diversification and renewable energy projects. Specifically, support is delivered through Rural Development Contracts – Rural Priorities which was launched in April 2008. For further information about what support is available see the Section on Rural Development Contracts – Rural Priorities.