Alpacas are gentle, rare animals that are exotic (although Alpacas have been classified as livestock) and raised for their exquisite fur or "fleece." Their fleece is shorn each Spring, causing no harm to the alpaca. This fleece is extremely soft and strong and used for everything from hand-spun yarn to the most expensive coats and garments.
It's all about the Fleece...
Alpaca fleece is exquisite; that's what all the fuss is about, alpaca yarn, alpaca blankets, hats, coats, toys, stuffed animals. It's one of the softest fibers on earth. There are 22 recognized colors of alpaca fleece, and quality fleece is the goal of every alpaca farmer. The value of the fleece is in its comfort factor- soft, light and insultating. A product this is a hand spinner's delight.
Where Do They  Come From?
Alpacas originated in the Andes Mountains of South America, in the countries of Peru, Bolivia and Chile. They have been exported all over the world. Alpacas were first imported to the United States in 1984. Later the US alpaca registry (ARI or the Alpaca Rsgistry, Inc.) closed to alpac imports, thus protecting the US market. This kept the value of alpacas strong.
Alpacas vs. Llamas
Alpacas are related to llamas and vicunas. They are much smaller than llamas. The easiest way to tell the difference between the two is to look at their ears. Llamas have curved, banana-shaped ears and alpacas have spear-shaped ears. Llamas have many different types of fleece, single coat, double coat, many with a great deal of guard hair. Alpacas have been raised by the Incan Indians century upon century continually refining their coats to achieve a blanket whose guard hair is almost as fine as the fleece itself.