The Herdsman's Cottage is a scheme run by PACOMARCA to focus attention on the need to promote the building of suitable living accommodation for the alpaca producers who spend their lives in some of the country's most remote locations, usually at very high altitudes above sea level.

PACOMARCA has developed prototypes for ecological dwellings made from locally obtainable materials and which are equipped with facilities such as heating, running water, sewage disposal based on bio-digesters, solar energy, double glazing, and a plant nursery or installation for raising guinea pigs; this would lead to a marked improvement in the living conditions of the alpaca herdsmen living at high altitudes.

The Herdsman's Cottage is at present the first prize in The Inca's Lote alpaca-fiber competition organized on an annual basis by PACOMARCA. The cottage is built and fitted out on land belonging to the alpaca producer declared winner of the competition.