From the Andes to Madison Avenue,

guanaco and vicuña fibre trade & local livelihoods

Dr. Gabriela Lichtenstein

INAPL/CONICET

• Vicuñas and guanacos are among the few native large herbivores that inhabit deserts and high plateau grasslands in SA.

• They have been used by local inhabitants for 10,000 years +

• Suffered a severe decline following Spanish Conquest and the introduction of firearms and horses

• In the case of vicuñas this was mainly due to their fine fibre whereas in the case of guanacos, they were replaced by sheep.

Guanacos and vicuñas have one of the

finest and rarest animal fibers that supplies

the most exclusive European markets.

Bring together both extremes of the social

scale: the fibre is produced by low-income

communities, while the manufactured

goods are consumed by the wealthiest

elites.

• Fibre is produced by extremely

low-income Andean communities

• Generation of added value has

historically not promoted by

national governments

• Although goods made from

vicuña fibre are sold at exorbitant

prices, local people do not obtain

significant economic benefits

• The market is small, closed and

controlled by long established

oligopolies

• Most of benefits are being

captured by traders and

international textile companies,

What are the barriers that limit a more equitable

distribution of benefits along the commodity

chain? • Unfulfilled basic needs & disempowerment

• A deficient legal framework (e.g. uncertainty about usufruct rights)

• Lack sufficient governmental support in terms of financing, pro-poor policies and capacity building

• Lack of proper community representation at international fora (e.g. Vicuña Convention or CITES)

• National regulatory barriers that impede exports.

• Limited accountable national or regional institutions in charge of commercialization

• Remotedeness, large distances, isolation

What are the barriers that limit a more equitable

distribution of benefits?

• Lack of information about prices paid to other producers or

countries places producers in a poor negotiating position

• Lack of international commercialization skills

• Limited generation of added value at regional level

Challenges ahead

• Moving from “trade as usual” to fair trade schemes that increase the producer´s share of total retail value;

• Strengthening producer associations and creation of social enterprises;

• Capacity building for commercial engagement;

• Improving information exchange (e.g. prices, potential buyers) between countries and among producers

• Promoting the generation of added value at national and regional levels;

• Developing a market for handicrafts using legal fibre;

• Securing tenure over land and usufruct rights over vicuñas;

• Empowering local communities and improving political capabilities;

• Creating networks of partners with NGOs, universities, research centres, and donors;

• Developing policies that tackle market failures, improve market access and ensure that markets work for local communities (instead of the communities working for the market)

Aim To improve the socio-

economic situation of a

cooperative of

pastoralists via the

development of the

commodity chain for

guanaco fiber

To generate jobs in the

rural area to avoid out-

migration

Salinillas

• Built a Mill in a remote area, imported and adapted

machinery to process fine fibres; trained Cooperative

Lessons learned

• The importance of a favourable policy environment. The project could not have been implemented without the support of the national government and all the public institutions that are aligned in promoting inclusive pro-poor policies.

• The importance of creating networks, alliances and support groups in the implementation of projects.

• Social processes in order to create robust, accountable and democratic institutions are longer than projects

• The wealth of interdisciplinary outlooks

• To be open minded and creative to enable resilience

• Small is beautiful

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