Alpaca wool by SEM. An alpaca (Vicugna pacos) is a domesticated species of South American camelid. It resembles a small llama in appearance. In the textile industry, "alpaca" primarily refers to the hair of Peruvian alpacas, but more broadly it refers to a style of fabric originally made from alpaca hair. Alpacas are kept in herds that graze on the level heights of the Andes of southern Peru, northern Bolivia, Ecuador, and northern Chile at an altitude of 3,500 m (11,500 ft) to 5,000 m (16,000 ft) above sea level, throughout the year. Alpacas are considerably smaller than llamas, and unlike llamas, they were not bred to be beasts of burden, but were bred specifically for their fiber. Alpaca fiber is used for making knitted and woven items, similar to wool. Enhanced SEM. Image width: 320 micrometers. Magnification: 313x if the image is printed 10 cm wide.