They may be cute and fluffy, but as farming continues to diversify, alpacas are also a good business idea. David Clensy meets the Wiltshire couple investing in the loveable creatures. Pictures: Paul Stallard

M ost people plan their retirement with high interest ISA savings, pensions, or buy-to-let second properties. But Peter and Carol Watt are opting for something a bit more cuddly.

The couple invested in a seven-acre field a few miles from their Wiltshire home 15 years ago, and have since used the land to house their horses and chickens.

But Peter and Carol had no experience of keeping any other kind of livestock when they agreed to take on a herd of alpacas two years ago.

For Peter, a computer analyst, and Carol, a school teacher, the world of wool farming was as foreign to them as the long-necked Peruvian beasties.

"It was a whole new challenge for us," Peter says as he sits down in the kitchen of his Steeple Ashton home, near Trowbridge.

"But we had a bit of money set aside for a pension, and after a lot of careful thought, we decided that this would be a good way to invest it."

Alpacas don't come cheap. The high-altitude creatures, which resemble miniature llamas, will set you back £5,000-£6,000 for a high- quality breeding female – and considerably more for a stud male.

"We went on a course run by Hilary Shenton, an alpaca expert based in Worcestershire," Carol says.

"We were both so taken with the animals, and so keen on the idea of keeping them, we made a fairly quick decision to give it a go for ourselves.

"Initially, we bought four females and a male, though two of the females were already pregnant. So after just a few months we had another two girls on our hands.

"Then we bought another two studs, and more young alpacas followed. We now have a total of 11, so the herd is building up all the time. The idea is to continually improve the bloodline, so you iron out any imperfections in the fleece.

"It's very like breeding dogs in that sense. There's even a British Alpaca Society, which works very like the Kennel Club for dog breeders."

The couple have also joined the Zarza Alliance – a co-operative of small scale alpaca owners across the country, run by Hilary Shenton.

"It's a sort of support network," Peter explains. "From looking after each others' animals when we're on holiday, to exchanging stud males for breeding programmes – it's been a big help having that connection with other alpaca owners."

Peter and Carol see the venture as a serious business move. When the herd is a little bigger, they plan to start selling some of their animals on to other breeders, in order to start recouping some of their investment.

In the meantime, they also hope to make money from the wool.

"It's a very high-quality product," Carol explains. "It's more highly regarded than even cashmere.

"But shearing and making wool has been a whole new experience for us.

"We were amazed how difficult it was to find a working wool mill these days – we ended up using a place up in Banbury, Oxfordshire.

"We took our first piles of fleece up to them a few weeks ago. We were impressed to get about 23kg of fleece, but we've no idea how much wool that's going to make."

Carol says it was quite a shock to see the animals having their first annual shearing.

"They look so different without their fleece – it had grown really thick," she laughs. "When you see them looking half the size the next day, it's quite alarming.

"But they're remarkably hardy animals – which isn't surprising when you consider that their natural habitat is up in the mountains of Peru."

The female alpacas look particularly delicate, and it's not difficult to tell the difference between the sexes. The contrast is almost cartoon-like. The males look butch and powerful, while the females have pouting lips, fluttering eye-lashes and long nails. "But they're very robust," Peter says.

"We have a shelter for them, but they never go into it. They're quite happy to stand outside in the wind and the rain.

"When we had our first alpaca birth, we were terrified – our vet told us off for coddling both the mother and her offspring. He was right, of course – they were able to pretty much look after themselves.

"And they're not too expensive to keep – especially if you already have the land to keep them on.

"They're happy just to graze on grass and hay, although we do give them vitamin supplements, too – because they're not getting the vitamins from the Peruvian sunshine to which their bodies are genetically accustomed."

But when it comes to looking after the alpacas, Peter and Carol do have help. At just seven months, Nanook the sheepdog isn't quite up to the task just yet though. "He's a Maremma, which is a breed of Italian sheepdog," Peter explains.

"They're not like our sheepdogs – they're not bred to chase the sheep, but rather to live with them and protect them from predators.

"We were advised that this breeding makes them perfect companions for alpacas."

Nanook – so named because his white coat gives him the appearance of a polar bear – is far more interested in playing with the horses in the neighbouring field at the moment.

"He's still just a playful puppy," Peter says. "But he's already getting to know the alpacas quite well – one of the females really loves him. She stands there watching him all the time.

"In fact, they're nothing like sheep. They certainly don't take much shepherding.

"If I tried to get a dozen sheep into a pen without a sheepdog, I'd be here all day. But with these girls, all you have to do is walk behind them and quietly encourage them all towards the pen. They'll do exactly what they're told."

Peter says they're also very calming.

"It's so therapeutic, because they're so gentle and quiet," he says.

"Although they are related to camels and llamas, they very rarely spit. They're just not very aggressive creatures."

Carol admits the project isn't just about building up a pension fund.

"It is a lifestyle hobby as much as it is an investment," she says.

"We love coming out here each day and spending time with the alpacas. It's certainly a fun way to save for your pension."

For more information on alpacas call Peter and Carol on 01380 870603 or visit Hilary Shenton's website at www.zarza-alpacas.com