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 Alpacas are expensive for several reasons. 

	First of all, there aren't that many of them, only about 30,000 Huacaya and Suri alpaca in the U.S.,  and as more and more people worldwide learn the advantages of alpaca ranching, demand continues to exceed supply.
	Females have a gestation period of 11-12 months, therefore only having one cria per year, so the rate at witch they reproduce is slow.  Importations of alpacas from South America have also been  stopped to maintain the high quality of our current herd.
	Many breeders are building the size of their own herds; thus, they tend to retain more offspring each year than they sell.
	Finally, artificial insemination has been found to be nearly impossible in alpacas for physiologic reasons.

It is true that alpacas are expensive livestock to purchase; however, that works to your advantage when you have animals to sell.  Their prices have held very well.  Thus, a breeder can generally expect to recoup the initial cost of a female alpaca, for example, within 3 years or so of her purchase by sale of her offspring.  There are very few investments which have the potential of yielding 100% within 3 years! The Tax implications are also a plus, talk to a good CPA to learn more about the benefits that come in to play.

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