That's the opinion of Primaries wool merchant Greg Tilbrook, who has gathered producers from WA and NSW to sell a line of alpaca wool off the back of the success of the first bale sold last year.

Peter Richards, Sun Cloud alpaca farm, said while the alpaca industry was small, the first alpaca bale sold to China was so impressive, buyers wanted another 100 bales.

"We wouldn't even be able to get 100 bales out of Australia, so that shows there definitely is a demand for it," Peter said. "We just have to try and meet that demand through breeding.

"Originally there was only one place to sell alpaca wool and that was to Australia Alpaca Fleece Limited, a co-operative which went private.

"We weren't receiving good money for our wool, so last year we approached Greg to see if he would be interested in trying to sell some alpaca wool.

"Last year's bale sold for around 2800 cents a kilogram.

"The alpaca fleece is exactly the same as the Merino, it just doesn't have the lanolin content.

"The yield is also much better than Merino so we just really need some more volume and get some other breeders to get on board."

"A line of 17 bales of alpaca wool was sold at sale number 24 this week after the Merino sale."

Mr Tilbrook believes it's not a matter of trying to reinvent the wheel in promoting alapaca wool.

"We're just testing the water to see if it's commercially viable, and look at how much interest there is out there," he said. "Basically were going to mirror the steps put in place for the Merino industry.

According to a Soft Rolling Skin Alapaca (SRSA) spokesperson, the offering from WA and NSW was another step towards commercialisation of the alpaca industry.

"Alpaca fleece produced to the correct specifications can compete internationally with the likes of the cashmere market," the spokesperson said.

With test results showing comparative figures to a 18 or 19 micron Merino clip, it is hoped the softness and lustre of the fibre will spark growing interest.