Many misunderstands the definition of 'baby alpaca', it sounds like it's talking about the alpaca's babies (kids), but it doesn't. Alpaca wool varies in quality depending on the part of the animal where the wool is collected. Baby alpaca wool comes from the underside of the neck of the alpaca, where the fleece is the finest and softest. The fleece of alpacas is harvested annually in a way that never damages the animals.