Locally abundant ungulates often come into conflict with human activities. After a population collapse that reached its nadir in the 1970s, the guanaco Lama guanicoe population in Tierra del Fuego, Chile, recovered and is now in conflict with sheep ranching and commercial logging. We studied the effects of livestock density and environmental factors on guanaco abundance and spatial ecology, using seasonal counts and radio-telemetry in a private protected area (Karukinka) and neighbouring ranches in a forest–grassland mosaic in Tierra del Fuego. Guanaco density was highest in low-elevation areas with more grassland cover and little snow accumulation in winter. In low-elevation areas, guanaco density decreased with increasing livestock density. Radio-tracked guanacos exhibited a partial migration pattern: two individuals migrated seasonally, selecting grasslands and avoiding forests mainly in summer, whereas six sedentary individuals used habitats according to their availability. Migratory guanacos spent the summer in Karukinka and winter on nearby ranches. High sheep densities and poor range condition on the ranches reduce key forage resources available to guanacos and may promote use of forests by guanacos, affecting forest regeneration and increasing conflict with logging. Current guanaco harvest by loggers may fail to reduce the impact of guanacos on logged-forest regeneration if guanaco spatial ecology and sheep management are not considered. Our results provide insight into the interactions among guanacos, forests and livestock ranching, and may be used to reduce conflicts and guide conservation in the Fuegian ecosystem.

The guanaco Lama guanicoe was the only large native herbivore widely distributed across Patagonia until the introduction of domestic sheep Ovis aries. Guanacos have declined because of competition with sheep for forage, high hunting pressure and habitat degradation. Península Valdés is a protected area where sheep ranching is the predominant activity. A ranch formerly dedicated to sheep production was converted into a private wildlife reserve, from which all the sheep were removed in 2005. We studied changes in guanaco abundance inside and outside the reserve after sheep removal, and also plant cover of various vegetation types. We found that guanaco abundance was higher inside than outside the reserve, and increased by three-fold within 3 years. Total plant cover and grass cover were higher inside than outside the reserve. Our results showed that guanacos reacted rapidly to changes in management, and suggest that even at a high density guanacos would not be as damaging to the vegetation as sheep. Although management changes resulted in significant changes in guanaco abundance locally, the size of a protected area influences the persistence of wild populations. A large herbivore such as the guanaco needs to be managed across large areas. We believe it is necessary to implement a management plan for Península Valdés that allows for the coexistence of sustainable livestock production and healthy wildlife populations.