so i wanted to add an answer to this topic so i did a quick google.
heres a site based on sheep and how they are treated. alpaca wool as an alternative it's mentioned somewhere here:
http://www.savethesheep.com
Intresting copied & pasted info from:
http://heebnvegan.blogspot.com/2008/05/and-most-gentile-animals-are-alpacas.html
According to PETA, “The alpaca-wool industry exploded in the 1980s, when South American alpacas and llamas were marketed worldwide to entrepreneurs. The demand for alpaca wool has increased, so much so that herds numbering in the tens of thousands are now raised in the United States and Australia. Most of the world’s alpacas live in Peru, but government officials there believe that Australia could take over the industry within two decades.
-nothing bad is mentioned about the alpaca industry so in my mind i think its going well but it doesnt mean it will continue to go well if the alpaca wool industry continues to become more popular, more alpaca wool will be in demand so it might result in them treating animals like like products as the sheep have turned into.-
WOULD YOU EAT AN ALPACA?
Currently, in Australia, alpacas are bred mostly for the beautiful, soft fleece (wool) they produce. There are alpacas being used for meat though and restaurants that offer it on their menus. Just as meat from cattle is called beef and deer is venison, the term being used for alpaca meat in Australia currently is Viande. I have not tasted alpaca meat, but apparently it is quite a lean meat with a taste described as similar to sweet lamb.
Approximately 50% of a carcase is used as prime cuts, such as loin cutlets and steaks, which are sold in either the fresh or frozen meat markets to restaurants, hotels and supermarkets. Secondary cuts are processed into sausages, hot dogs and processed alpaca hams.
-info from yahoo answers

EWW THAT IS SO DISGUSTING! yes i know
would you seriously eat an alpaca??: PICTURES-
http://www.musiccityalpacas.com/Versace-and-picard-playing.jpg
http://www.peacefulprairie.com/images/jazmine_closeup_5hbg.jpg
if your curious heres some info about alpacas:
http://www.rivermistfarm.net/alpacas.htm

xo