Alpaca Breeders are often asked what makes Alpacas different from Emus.  Some recent news articles have been published that make the comparison from an investment standpoint.  The fact is that Alpacas and Emus are completely different, both from a physical and investment standpoint.

Alpacas have been a profitable investment for many Alpaca breeders since they were first imported into the United States in the mid 1980s.  That's 25 years and counting!  Emus had a short burst of activity in the 1990s, but the market for Emu products never materialized in the United States, although there is still some demand for Emu products. So why is the Alpaca industry thriving, and what makes Alpacas different from Emus?

Breeding Stock Supply and Demand

First and formost, the supply of Alpacas does not increase at the same rate as Emus once did.  A breeding pair of Emus can produce between 10 and 20 offspring every two months.  Conservatively, that would equate to 60 Emus in a year.  A breeding pair of Alpacas produce one offspring every 12 to 18 months.  As a result of the rapid growth of new Emus entering the market, there was soon an abundance of Emus and a shortage of buyers.  Supply quickly outpaced demand, resulting in decreasing value and the eventual demise of a viable Emu market.

Alpaca growth has been consistent for over 25 years, with many new breeders entering the market each year.   

Product Supply and Demand 

The main product that comes from an Alpaca is its fleece.  In its raw form, Alpaca fleece is a favorite of many hand spinners.  Many Alpaca breeders choose to send their fleece to a mill where it is turned into yarn and sold through their farm stores or through the Internet.  There are also several co-ops where Alpaca Breeders can send their fleece and purchase finished products for resale.  There are active marketing efforts through a strong national organization, as well as regional and local Alpaca organizations.  For some breeders, the sale of Alpaca products are their primary source of income.  Because of the value of Alpacas, they are not sold for their meat, although Alpaca meat is consumed in some other countries.  One interesting reason many Alpaca breeders enter into the business or breeding and raising Alpacas is that unlike most livestock, they are not slaughtered

The main products that come from Emus are Emu oil, meat, and feathers.  The emu oil is used in some beauty products.  Emu meat is consumed in some countries, but unfortunately the market never materialized for Emu meat in the United States.  Emu feathers are sometimes used for decoration.

Physical Characteristics

The Alpaca		The Emu

Most people describe Alpacas as "Cute and Cuddly".  They have large round eyes that can steal your heart.  They are curious, but not aggressive, and communicate through a soft humming sound.  Adult Alpacas generally weigh between 125 and 175 pounds and are about 36 inches tall at the whithers (shoulder).  They have soft pads on their feet that are gentle on the land.  Alpacas are mammals and in many states are considered livestock, which puts them in the same classification as cattle or sheep for tax purposes. 

Most people would not describe an Emu as cute.  They are tall birds, usually between 5 1/2 to 6 feet in height and weigh between 110 and 120 pounds.  Although they are birds, they cannot fly but can run up to 40 mph.  Emus can be aggressive.  Emus are members of the ratite family of birds, which also includes the Ostrich.

Investment Considerations 

Alpaca prices have remained relatively stable for the past 25 years.  Investing in Alpacas as a business can have significant tax advantages, including depreciation, agricultural exemption status for land used to raise Alpacas, and costs associated with running a business.  "Passive investors" that purchase Alpacas but do not actively participate in the business of raising and breeding Alpacas can also benefit through the sale of offspring from their initial investment.  Because Alpacas can be treated differently for tax purposes depending on where you live,  whether you are actively running an Alpaca breeding business, investing in Alpacas or raising Alpacas as a hobby, you should consult your CPA and other professionals before investing in Alpacas.  Since Alpacas are generally considered to be livestock, don't forget to check your local zoning board as well to make sure Alpacas can be raised on your property.  Alpacas are also insurable, reducing your risk in the event of an accidental loss of your investment. 

According to a December 2008 video published on CBS, breeding female alpacas can sell for upward of $15,000.  Click here to see the video. 

Emus have little market value.