Sheep grazing in the lower reaches of the Altiplano o Peru. Pound for pound it is more economical to produce sheep wool than alpaca wool, hoever, sheep are seldom found in the Altiplano since they do not adapt well to high altitudes while alpacas o and do and they give a coarse but warm and light wool. - - FAO/UNDP Project. Animal products play an important part in the predominantly agricultural economy of Peru. In order to build up this sector of the economy the Food and Agriculture Organizatinon (FAO), with financing from the United Nations Development Program (UNDP) is teaching better animal husbandry and utilization of sheep, llamas, alpacas and vicunas as well as assisting Peruvian government veterinarians in fighting diseases and up- grading stocks.