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Average cost of maintaining an Alpaca
I was wondering if any farms are willing to share the average cost of maintaining each Alpaca in your herd. I am including all the expenses associated with the herd divided by the number of alpacas in your herd. For example if your total herd cost with all expenses in, is $40,000 and you have 20 in the herd your average cost is $2,000 per alpaca. I am interested in the range of costs farms experience and finding out from those with lower costs what they do to keep costs down. If you are not willing to share the exact costs but willing to share an approx or give a range that would be appreciated.
My average cost per alpaca is approx $2500.
My average cost per alpaca is approx $2500.
Replies to This Discussion
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Permalink Reply by Donna Jaruzel on -
Isn't this an awful high figure? What are you including in your expenses? First things that come to my mind are: feed, hay, straw, Vet bills, and shearing. What else are you including? You would also want to deduct what you sold their fleece for in determining this.
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Permalink Reply by Mac Johnston on -
I am including all expenses such as depreciation of the barn and the alpacas, marketing, show expenses, office supplies, vet supplies, telephone, equipment, and equipment repairs, insurance both livestock and farm policies, mileage, fertilizer, fuel, registrations, transfers, subscriptions, etc. i.e. all cost to run the business.
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Permalink Reply by Chris Arnold ~Good Shepherd Farm on -
Mac,
I have attached a pdf file of my spreadsheet for figuring our cost in 2008. It covers daily, monthly, quarterly, and yearly cost along with a bottom line boarding fee if we were to take on any new boarders. One thing that we do to cut cost and provide an income is cut and sell our own hay. Also at the selling of our alpaca yarn we use the price formula of cost of feed per year + shearing + processing divided by yarn in oz and multiply by two. We will add more for cria yarn or very low micron / softer yarn. This formula is equal to 100% profit and allow the alpacas to pay for themselves. I hope this helps. If you monitor all of your cost down to the penny you can find ways to save money. If you find some ways to cut cost, please share them. - Attachments:
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Permalink Reply by Mac Johnston on
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Thanks this is very helpful. The costs you have listed are very similar to what i have, but I have more included such as marketing and depreciation, etc that you don't. If I get more responses I will put together a comparison guide and post to the site.
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Permalink Reply by Chris Arnold ~Good Shepherd Farm on
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Sorry for the confusion. Maintaining an alpaca to me does not include extra expenses like marketing, insurance, and depreciation. I think what you are looking for is a farm budjet or business plan. These types of figures will differ from farm to farm and may be difficult to retrieve because of capital, goals, and livestock inventory. Also, If you have a mentor farm, ask them if they can provide this information.
I am very interested to see the replies and thank you for posting this.
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Permalink Reply by Mac Johnston on
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No problem with the confusion. What you sent was very helpful. I am not looking for a farm budget or a business plan. I prepare those as my fulltime profession and I am adept at those. What I am trying to get at is a comparison of my, all in costs, for my farm operation with other farms. And you are absolutely correct there will be a significant range of costs and I was hoping to see what the range is and where I might compare. My goal is to find the lowest cost possible and then work backwards to see what I need to generate in revenues from the fiber and fiber products to break even or make a profit. In your example your cost of maintaining was $1576 per Alpaca. If on average you produce 10 lbs of fleece per alpaca your cost per pound of fleece is $156 to produce. So does the formula you gave above cover the cost of maintaining your alpacas that is on your spreadsheet, or does it just cover the feed and shearing?
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Permalink Reply by Chris Arnold ~Good Shepherd Farm on
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The formula for selling yarn / raw fleece covers, feed, shearing, yarn production x2. The problem is If we were to add the "extras" medical, insurance, marketing, etc. for each individual alpaca to the price of yarn, our yarn would be far too expensive for anyone to purchase. Profit generated from alpaca sales and/or personal capital invested in the farm covers the expenses for the "extras".
This comparison would be a handy too but honestly, It's going to be difficult to acquire the data. If you post specific expense items Im sure there would be some reply.
A sheet outlining the average expenses would also be a great tool for marketing to new buyers. Would you be willing to share your findings?
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Permalink Reply by Mac Johnston on
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That is what I concluded too. Adding the extras makes the yarn too expensive. And getting the expense comparison is difficult. Other than yourself no one has replied. I'm sure it is somewhat sensitive information but would be helpful. I agree a sheet outlining average expenses would be very helpful to new buyers (and was in part what I hoped to get to) so they know what the exp and revenue side of the business is. I am happy to share what I come up with.
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Permalink Reply by Dena Kotka-Holtz on -
I'm very interested in this. I haven't done my homework. I have been putting it off because we've been allowing our herd to grow before getting serious in selling anything. I figured it was all in my taxes and I could dig up the information when I needed it. Now that our herd is getting to a good size it is time to start hitting the books and gathering this information. Thanks Chris for the formula for raw yarn!
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Permalink Reply by Jami Barnett on -
I am intersted in this topic as well. I would be considered a new buyer and find this information useful in the way of a business plan and as just a monthly business budget. I would need to add these costs to the monthly payment on an Alpaca. I want to budget appropriately as these times aren't so stable. Thank you for all the information provided from those willing to share! : )
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Permalink Reply by Mac Johnston on
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Give me a day or two and I will get back to you. I am swamped with new alpaca boarders right now and my regular fulltime job.
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Permalink Reply by Don Marquette on -
Jami,
here is some of our numbers.
My feed bill per alpaca works out to be about $160-170 per alpaca per year. That includes pellets at $17.00/ 50 lb bag, and includes $5-6/bale of hay. This was figured over a 60 alpaca herd. Will vary depending how much pasture your alpacas have to graze on. Our vet bills seem to average about $150/alpaca/year. this will vary depending on size of your herd, how much you personally get involved, and how much breeding you have going on. Breeding females, in general, raises overall vet costs because some girls have problems getting pregnant due to infections and other things, plus we do ultrasounds. The avg of $150 per year per alpaca, is skewed because every year we usually have some kind of major vet bill, like a broken leg or a very sick cria, or something. More alpacas equals more odd ball variable costs. Meds will be fairly low cost per alpaca depending what part of country you live in and which parasite issues you have to deal with. $50/alpaca per year for meds. $20-50/alpaca/year for Straw or bedding costs depending where you live and how you manage your herd.
Hope some of that helps.
Don
www.The AlpacaRosa.com
Ohio
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