The breeding feature will be unlocked after your rank is upgraded to Rookie
When you first unlock and click on Breeding, you get a tutorial on it. You can find the tutorial again under Settings, top right of screen, and clicking on help. Buying Gmos Technology for gold, will let you pick the baby's color from the list of possibilities. The Nutrient Potion for Alpaca Coin will make a baby alpaca an adult with no wait.
Breeding is where you breed your alpacas and get a new baby alpaca. First, you need to choose two alpacas to be parents, one male and one female.
When you breed an alpaca, the mother will be pregnant for 10 minutes. During the pregnancy, she cannot leave the farm and battle with any wild alpacas.
Baby alpacas' wool and skin colors will be a combination from the color spectrum of the mother and father.
Baby alpacas cannot fight. They become adult alpacas in a total of 24 hours after 'birth'.
IMPORTANT NOTE: the 24 hour countdown toward the baby alpaca's transition to adulthood ONLY starts when you're online; when the game informs you 'a new alpaca is born'. This is when the camera zooms in to the newborn baby fullscreen for you to see.
So if you can't afford the The Nutrient Potion at the moment, it's advisable to check the game as early as you can around the end of the 10 minute countdown.
The earlier you are, the sooner the infant will be an adult as soon the countdown starts!
Congratulations on your new baby alpaca!
Is it a boy or a girl?