Most farming is subsistence, with the food grown for personal consumption, but there is some commercial farming.
Llamas
Llamas are synonymous with the Andes. They are the pack animals, carrying irrigation and building materials into inhospitable and hard to reach areas for 100s of years. Ancient settlement of Machu Picchu relied on Llamas to transport materials and goods due to its remote location. Llamas are very well adapted to living in the harsh environment of the Andes. They have an unusual way of moving; they pace, which means that both legs on the same side rise together so they can run very quickly. They have long, thick, coarse hair with spots of color that can protect them from being attacked by prey. They can be different shades of brown, black, peach, white, gray and roan. They are very intelligent and learn quickly. Unlike other hoofed animals, llamas have feet with 2 toes. The bottom part of the foot is divided in 2 and is covered by a tough leathery sole. Llamas are especially sure-footed. Because of these pads, they have a good foothold on rocky and slippery ground.
Llamas have unique blood that adapts well to the poor oxygen in the high altitudes where they live. Llamas have more red blood cells per unit volume of blood than any other mammal. Also, llamas are able to travel long distances without water. They have 3 stomach compartments and they chew their cud. Cud is a mouthful of swallowed food that is regurgitated from the first stomach. Because of these special features the llama makes an excellent packing animal for the people that live in the remote areas of the Andes Mountains.
Llamas have many uses in the Andes, for example the mining industry relied on them as a form of transport. Today, this use still exists – largely of male Llamas. Females are used for meat, milk and wool for clothes and rugs.
Llamas are also often used as guard animals. The llama's territorial nature, protective instincts, and self-sufficiency combine to make it an effective guard animal for domestic species that is subject to predation. Llamas offer advantages over guard dogs currently in use because they forage with the herd they are protecting and don't take extra management and maintenance. They are a 24 hour presence and don't have the potential of turning predator against the population they guard. The most common species employing the guard llama concept is sheep. Goats, cattle, and alpacas are other species the llama has effectively protected against predation.
Mining
The Andes Mountains contains a rich mix of minable materials that are both very valuable and very useful to man. Although Andean Amerindian peoples crafted ceremonial jewelry of gold and other metals, the mineralizations of the Andes were first mined in large scale after the Spanish arrival. Potosí in present-day Bolivia and Cerro de Pasco in Peru were one of the principal mines of the Spanish Empire in the New World. Río de la Plata and Argentina derive their names from the silver of Potosí.
Currently, mining in the Andes of Chile and Peru places these countries as the 1st and 3rd major producers of copper in the world. Peru also contains the largest goldmine in the world - the Yanacocha goldmine. Other metals including iron, gold and tin in addition to non-metallic resources are also mined.
Hydroelectric Power
Hydroelectric power generation is when a rotating turbine transfers the mechanical energy of moving water to a generator, where it is converted to electric energy. Hydroelectric power generation is a renewable source of energy. The deep valley and rivers of the Andes give it huge potential as a region to produce hydroelectric power. The narrow valleys are ideal to dam as it cuts costs, and the steep relief increases water velocities allowing electricity generation. Snowmelt fuels most of the water provision, but this means that HEP production can be reduced to small amounts in winter.
Bolivia, Venezuela, Peru, Colombia and Ecuador combined produce 71% of their energy through the use of the Andes for Hydroelectric power generation. So it is clear to see that they are very reliant on the Andes as a source of energy.
Tourism
The Andes countries are one of the most important tourist regions in South America. The Andes contain the most extreme variations in landscape, vegetation and climate of any mountain group in the world. There are many natural attractions in the Andes such as mountain peaks, glaciers, lakes and volcanoes. Some tourist attractions show how people have settled in these inhospitable areas such as the remains of early settlements built by the Incas like Machu Picchu. The Inca trail combines both. In Peru you can take a virtual field trip of the Inca Trail. The trail basically covers 50km of old pathways linking together old Inca settlements in the inhospitable mountains of the Andes. It is South America's best-known trek and is one of only 23 World Heritage Sites to be classified as important both naturally and culturally. The rail is covered in 4 days and covers around 50km, and finishes with sunrise at the "Lost City of the Incas" at Machu Picchu. The trail is strictly controlled, and only 200 trekkers are allowed to start out on the trail every day. According to a Peruvian government study, the satisfaction rate for tourists after visiting Peru is 94%. Tourism is the most rapidly growing industry in Peru, growing annually at a rate of 25% over the past five years. Tourism is growing in Peru faster than any other country in South America.
Although the Andes are a source of indispensable economic benefits all the way up to international level, the clear majority of inhabitants are poor, depending on subsistence farming and low wage manual labor to survive. The countries along Andes use their marvelous landscapes in order to stabilize their economy. Tourism industry in Andes is not only the source to earn money but also to promote the culture of the adjacent countries. Therefor cultural tourism has become an important source of revenue for the countries along Andes.