Building alpaca breeding communities’ social capital has improved their competitive position and increased their income in the Peruvian southern Andes

The PRA Project has implemented a strategy to promote the collection and sale of alpaca fiber in the Puno region. Four community associations have received technical assistance to help them organize their supply and increase the fiber’s quality.

Mr. Calisto Ccami Pillco from Corani Community (at 13,000 ft above sea level), said: "We never received that price for the alpaca fiber before. Thanks to the PRA Project we now get an excellent price”.

The alpaca, a cousin to the llama, has been domesticated for thousands of years and lives in the Andes between 11,500 and 16,000 ft above sea level. Alpaca fleece, a lustrous and silky natural fiber, is highly appreciated in the international garment industry and is used by top fashion designers for sweaters, suits, and coats. Alpaca breeding provides a significant source of income to lower-income remote agricultural communities in the Andes.

The PRA Project identified four associations involved in the production and classification of alpaca fiber in Puno (southern Peru): Macusani, Ajoyani, Paratía, and Kenamari Alpaca Breeders Associations. These groups lacked organization capacity and were not able to produce enough quality fiber volumes to sell at a higher price.

During 2011 the PRA Project helped these four community associations strengthen their organization and coordination capacities, including their registration as formal entities and work to ensure total transparency in the use of funds. PRA also provided them with technical assistance to improve alpaca fiber quality and increase production supply. As a result, not only have the four communities steadily increased their supply, but they have also accessed prices 40% above the market average at the time of negotiation. With the expansion of the fiber collection network and after significant improvements in the fiber categorization, the associations have managed to sell fiber for more than US$300,000 to top quality alpaca garment manufacturers such as Michell, Inca Tops, and Productos del Sur, benefiting 790 families.

The additional income obtained has enabled the communities to collectively invest in fixed assets, including their own electronic scales, which allow exact fiber weighing in order to prevent cheating from dishonest buyers, a common practice in the past.