Forgive me if someone has already done the economics of this, but I find this to be an interesting economics question.
First, establishing their alpaca costs,
$369 per animal but cost cut to $250, according to this lady's blog. So assuming economy of scale, cost cutting, inflation, and neglect, lets say $190 annually (Who needs vet visits, vaccinations).
So at 170 animals at $190 each = $32,300 animal upkeep costs per annum.
Their reported fleece production is 2000 pounds (though this is highly unlikely as adult alpacas average 10 pounds of fleece per 12-18 months), but I will take them at their word.
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Milling Partner:
I am making an assumption here that they exclusively deal with
Soundview Fiber Mill.
- This assumption is based on the fact that they process their yarn.
- Are based in Washington State (1400mile drive away).
- There are two mills in the state and two more mills considerably closer which have better pricing.
- They seem like the type of crew who would go for the easiest option.
| Name | State | cost/lbs |
| Mystic Pines Fiber Processing | Arizona | $ 33.00 |
| Tahoma Vista Fiber Mill | Washington | $ 35.00 |
| Yampa Valley Fiberworks | Colorado | $ 37.00 |
| The Fleece Factory | Colorado | $ 38.00 |
| Ranch of the Oaks | Arizona | $ 38.00 |
| Soundview Fiber Mill | Washington | $ 41.50 |
Data scraped from mill sites found here its's pretty bare bones and doesn't account for delivered vs washed weights, but it's sufficient.
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Sales Floor:
Soundview Fiber Mill offers alpaca fiber for weaving at $15/lbs.
Assuming some kind of magic rainbow land where they buy the tranch's fiber at $15/pound (taking a significant loss), this adds up to $30,000 (minus shipping cost), or -$2,300 profit.
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Selling Yarn!
Ofcourse we know that the ranch sells yarn, and before their 'virtue signal to your friends your tranny yarn' $30.00 per 215 yards units,
Now, I haven't been following the tranch too long, so I don't know if their website yarn has ever actually been available, but once you see the economics of selling alpaca wool at the prices they're advertising, it will make sense why they advertise so high, despite the questionable quality of their product. Spoiler alert, it's optics.
They currently advertise a White 50 percent alpaca 50 percent wool worsted weight 215yard yarn,
Costs according to Soundview Fiber Mill:
Alpaca Fleece Washing Cost: $8.50 / pound
Processing Cost (Worsted 700 - 900 yd output): $30 / pound
Wool for Blending cost: $15 / pound
Discount for over 50pound transaction: 15%
Wash out rate (When you wash a fleece you lose some of its weight): Industry standard assumption = 15%
Delivery weight = 2000 pounds
Washed Weight = delivery weight * 0.85 = 1700 pounds
Wool Weight should match washed weight = 1700 pounds
Costs:
((Delivered weight * washing cost) + (washed weight * wool cost) + ((wool weight + washed weight) * Processing Cost)) * (1 - Discount rate) = cost of production
((2000 * $8.5) + (1700 * $15) + ((1700 + 1700) * $30))*(1-0.15) = cost of production
($17,000 + $25,500 + $102,000) * 85% = $122,825
Revenue potential:
Input weight: 3400 pounds
Assuming an optimistic 900 yd yarn / pound
Sale unit: 215 yard
Sale unit price: $30
((Input weight * Yards per pound) / (sales unit)) * Sale Unit Price = theoretical revenue
((3400 * 900) / 215)) * $30 = 14,232 skeins @ $30 each = $426,976

Revenue.
Profit:
$426,976 - ($122,825 + $32,300) = $271,851 per annum.
This is of course ignoring shipping costs both upstream and downstream of their store.
Total Skeins: 14,232
Break Even point: 5170 skeins sold @ $30.00 ex. shipping and tax.
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Conclusion:
When taking an optimistic view :
All inputs, from their 120% fleece intake, to minimal animal wellbeing considerations, to assuming optimal yields on all processing, to assuming they're able to sell 14000 skeins of their yarn despite advertising literally only selling it in one place, they're made in the shade.
When taking a more realistic view:
I think that they probably sell most of their fleece to Soundview fiber mill (they were the only mill I found which did not appear to have an alpaca farm, but offered alpaca wool for multi-fiber weaving, though they don't sell any in their store so this is a bit tinfoil on my part) and get a maybe a few hundred skeins to sell on their store (on the bottom of the store page) for looks. Pulling in the rest from grifting.
It really is an issue of demand here, I don't think there's sufficient demand from the hobby knitting community for $30 / skein shit yarn. The virtue signal can only carry this product so far.
I'm betting someone has already done this kind of post, but it was interesting.
In this magic land scenario they could break even at $11 per skein. But distribution is just too big an issue, if they were to partner with a company, the quality assurance, upstream supply chain auditing , and animal rights considerations would fucking murder them.
At least they get to outwardly pretend they run a viable business as they pan handle so that the media stories can continue to flow.