The developing market for alpacas has been restricted by supply. There are approximately 12,000 alpacas in North America and about 15,000 in Australia. Until recently, there has been little aggressive marketing of the animal, very few auctions, and very little national media attention for the alpaca. Yet both North America and Australia have experienced exceptional demand for alpacas ant very high prices. Canada has an active alpaca market, and many Canadians have recently purchased animals in the United States.

Supply will continue to be restricted in the near future for a number of reasons:

• Alpacas reproduce slowly (one cria/year)
• Many breeders retain their offspring to build up their herds.
• Imports from South America are very restricted, as well as difficult, risky and expensive. The importer risks losing his entire investment if the animals develop health problems in the quarantine or experience any number of potential problems.
• Mass production of "cria" via embryo transplant is not feasible, since there is no available supply of suitable female hosts.
• The limited size of the national herds in each country outside of South America will restrain growth for some time to come.
• The U.S. Registry has imposed stringent screening criteria for all imported alpacas to the United States.

Demand for alpacas has increased dramatically every year since their introduction outside of South America. The American and Australian breed associations each have over twelve hundred members, while only a few short years ago there were none.

The demand for alpacas is part of a larger appetite for investment in rare breeds. Whole industries have sprung up around ostriches, miniature donkeys and even Tibetan yaks. Investment in rare livestock coincides with people’s desire to live in the country, raise their children on a farm, and retire to a rural lifestyle.

Alpacas offer an outstanding choice as a livestock investment. They have long been known as the aristocrat of all farm animals. But most of all, alpacas are easy keepers, they have a charismatic manner, do very well on small acreage’s and produce a luxury products which is in high demand.

Consumers are drawn to alpaca sweaters with just one touch. Alpaca is several times stronger and much warmer than any sheep’s wool. The fiber itself is semi-hollow and makes it very light, thermal garments. Alpaca fleece is easy to process and readily spins into both woolen and worsted yarn. Fabrics made from alpaca are sewn into the finest European suits and garments.

Historically, alpaca production has been concentrated in the high Andes Mountains where there is limited pasture. The worldwide population of alpaca is barely three million animals. As a result, alpaca is considered a specialty fiber with limited available supply. Alpaca fleece is comparable to cashmere in softness. A future domestic commercial market for large volumes of alpaca fleece is easily envisioned and plans for a national fiber co-op are well under way.

The potential market for an animal with the characteristics of the alpaca is vast. Alpacas are only limited in their mere numbers. Alpacas are loved by their owners and respected by those who process or wear products made of their fleece. "Alpacas are truly much more than the world finest livestock investment."