Alpaca Farming in the UK – Pros, Cons, Costs & Returns
Explore the benefits and considerations of alpaca farming. Learn about startup costs, profits, pasture needs, and tax deductions when building a herd.
Alpaca Farming in the UK – Pros, Cons, Costs & Returns
Alpaca farming has grown rapidly across the UK, offering an ethical and financially rewarding way to build a livestock business. With low land requirements, soft impact on the environment, and increasing fibre demand, alpacas are ideal for smallholders and new farmers alike.
Pros of Alpaca Farming
- Low Startup Costs: You can start a basic herd with £8,000–£10,000 (excluding land)
- Low Land Use: One acre can support 6–10 alpacas comfortably
- High ROI: After 4 years, experienced breeders report 25%–60% return on investment
- Fibre Demand: Alpaca fleece is in growing demand globally, especially in fashion
- Low Feeding Costs: Roughly £1/day per alpaca on pasture and hay
- Family Friendly: Alpacas are calm and great for involving children in the farm
- Tax Benefits: Many costs are deductible as legitimate farming expenses
Alpacas also make excellent livestock guardians, especially for poultry, lambs, or goats. They’re territorial, quiet, and alert with a sharp sense of sight.
Cons of Alpaca Farming
- Long-Term Investment: It may take 5–6 years before substantial profits are seen
- Slow Breeding Cycle: Females birth only one cria per year
- Not “Petting Zoo” Animals: Alpacas are gentle, but not all enjoy being touched — early halter training is vital
- Specialised Knowledge Required: Alpacas are exotic livestock and require more education than typical farm animals
That said, with proper setup, mentorship, and the right stock — alpacas can provide consistent returns through fleece, offspring sales, and services.
Income Potential from Breeding
- Fleece Sales: Up to £50/year per alpaca (net)
- Male Offspring Sales: £500–£8,500 (avg. ~£5,000)
- Female Cria Sales: £1,500–£18,500 (avg. ~£5,000)
- Estimated Lifetime Return: £40,000+ over 15 productive years
A healthy female alpaca can breed for 13–17 years, starting from age 3, with total lifespans reaching 25–30 years.
Gelded Males for Fibre Farming
If breeding isn’t your goal, gelded males make excellent fibre producers. Their fleece quality stays consistent for longer, they’re easy to manage, and often cheaper to buy than females.
Alpaca Farming Tax Benefits (UK)
Alpaca farmers in the UK can deduct many of their farm costs as business expenses, including:
- Feed, hay, and supplements
- Vet bills and medications
- Farm tools, maintenance, and repairs
- Fencing, drainage, barns, shelters
- Insurance, legal, marketing, and staff wages
- Travel to shows and educational events
You may also be eligible for capital allowances on new equipment and long-term infrastructure. Speak to a rural tax advisor to ensure your setup qualifies.
Conclusion
Alpaca farming is a long-term but rewarding venture. Whether you’re planning a side income, family project, or full business, these unique animals offer financial and emotional return. Just be prepared to plan, learn, and grow slowly over time.