All grades of alpaca fiber are usable. Prior to being sent to a mill for processing, the fiber should be graded by micron with a varience between grades of no more than 3 microns. The graded fiber should then be sorted by length, 1.5 - 3.75" designated at short and 4.0 - 6.0 as long. Fibers longer than 6 inches may need to be cut to be processed depending on the mill. Graded and sorted fiber should also be sorted for guard hair. Fleece that has excessive guard hair present should be processed with other fleece with excessive guard hair. Those fleece may need to be dehaired before processing into yarn.

By grading and sorting fiber in this way, the end resulting products produced will have the best quality, uniformity and consistancy, all of these being important to the consumer.

Different grades of fiber are used to produce different product. A chart is shown below giving an idea of the type of textiles produced out of different micron fiber.