By Benjamin S. Orlove
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Extra info for Alpacas, Sheep, and Men. The Wool Export Economy and Regional Society in Southern Peru
In part, this lack of a futures market is a result of the enormous range in grades of wool, 1500 in the case of Australia, reflecting differences in breed, pasture, herding techniques, part of animal shorn, and so on. This variety is also the heritage of early English wool production, with a number of different breeds adapted to variations in local conditions, and is maintained by the structure of textile manufacturing summarized above. Such variety has made standardization difficult. There are relatively low annual fluctuations in global production.
Hacendados who have put up fences and introduced more capital-intensive production techniques have had strong political connections. The extensive use of fences in the province of Melgar in the department of Puno, for instance, dates from the 1940s, when the local hacendados had established ties with senators, other officials, and government banks which provided them with credit on very generous terms. The American mining corporations in the central highlands were also able to build fences because of their wealth and political power.
The structure described above permitted increased production; capital investment in machinery provided increased capacity. As demand continued to increase, the scarce resource became wool itself. The Shift to Southern Hemisphere Wool1 In England, the fine Merino wools of Spain supplemented locally raised wools through the end of the eighteenth century. Expanding textile production required larger supplies; assuring adequate sources of wool was a frequent problem in the late eighteenth and early nineteenth centuries.
Alpacas, Sheep, and Men. The Wool Export Economy and Regional Society in Southern Peru by Benjamin S. Orlove