But what makes a backyard breeder different from a reputable breeder is not the qualities they are choosing, but rather how selective they are about those qualities and the care the animals receives while at the breeders and afterwards. Backyard breeders do little to no research, whereas the reputable breeder does tons in order to give their animals the best.
Excuse me for going back a bit but I wanted to pick up on something Huffnpoof said here. I have highlighted a sentence which Tab commented on but I would like to add another couple of comments:
I know of several "backyard" breeders here in the UK who have well researched, professional-looking websites which look, to all intents & purposes, to be highly reputable. They have good information & if you ever speak to these people they sound convincing, caring & sincere.......... BUT they will throw any colour together & churn out poor quality chinchillas all year round. Some of them even claim to "rescue" but they are simply re-homing perfectly healthy chins for a fee - in reality they are "dealers".
I do not agree that a backyard breeder is necessarily someone who has not done research into chins - the key (I believe) is in the fact that they churn out loads of variable quality chins, often different mutation mixes, for money.
Every domesticated animal has a purpose. Standards are created to make sure animals remain suitable for that purpose, and breeding to improve means you are pairing to make that animal better at its job. If you are not breeding to meet and beat that standard, you are a backyard breeder.
The purpose of chins is to be pelted, and their standard (or what they're judged for) reflects what would make the best pelt. Temperament has nothing to do with how nice their coats are, and therefore is not judged. If you're not breeding to that standard, even if you're not a pelter as most on this forum aren't, you are not improving them. I have no problem with those who choose to include temperament in their criteria for breeding chins so long as it's not the only criterion.
I understand that, as a pet owner, you are looking for a friendly companion animal. However, a responsible breeder isn't breeding for you.
As a comparison, here in the UK we have no pelt market - there is still a pelt market in Europe though. Chinchillas here are bred for the pet market (with the very few exceptions of breeders who export to Europe) but we still aim towards the pelt standards & shows are run using pelt standard criteria.
Even from a pet market place I agree with much of what Mish has posted above - responsible breeders breed for health & quality on the show bench first & foremost.