Cashmere, a wool originating from the region of the same name in the Indian subcontinent during the 15th century, holds a significant presence. Sajjad Hussain / AFP
According to a report released by the market research and consulting firm Grand View Research in 2019, the global cashmere market in the apparel sector, which reached $26.6 billion in 2018, is predicted to grow at an annual rate of approximately 3.96% from 2019 to 2025.
The surge in demand is associated with the essential characteristics of Kashmir wool produced in the region spanning Pakistan, India, and China during the 15th century, characterized by “softness,” “fineness,” “resilience,” and “warmth.” This aligns with the increasing middle-class demand for “affordable luxury” in many countries.
As a result, brands such as Uniqlo, H&M, and ZARA have started offering cashmere products at affordable prices, although compromising on quality. Conversely, companies in Italy, France, and Scotland like Loro Piana, Brunello Cucinelli, Eric Bompard, and Pringle continue to provide the highest quality luxury products.
Even major clothing brands present cashmere as “accessible luxury.” Paul Faith/AFP
This democratization marks a turning point for the cashmere industry, facing economic, geopolitical, and ecological challenges. The crisis induced by the coronavirus has significantly impacted goat herders and spinning factories, leading to order cancellations and export interruptions, raising concerns about the potential extinction of cashmere in the coming years.
Coronavirus drives down prices
Currently, cashmere goat breeding primarily takes place in China (North China), Mongolia, Iran, and Afghanistan, with 90% of the production occurring in China and Mongolia.
Schneider Group’s analysis of the cashmere market from April to September 2020 details the impact and government interventions, highlighting Mongolia as the most affected region. The closure of borders led to a loss of Chinese customers, causing a nearly 50% drop in the price of cashmere yarn, plummeting from $38 per kilogram in 2019 to $24-27 in 2020. The report indicates a 6.1% contraction in Mongolia’s GDP due to the decrease in exports.
For Mongolia, the cashmere market remains a strategic activity involving approximately 230,000 nomadic herders, according to the report. The Mongolian government had promised $38/kg for raw cashmere, but due to the lack of international demand, they couldn’t fulfill this commitment. Consequently, the government had to provide herders with subsidies of around $7 per goat to cope.
Among cashmere-producing nations, Mongolia faces the most significant economic impact of the COVID-19 crisis. Joël Saget/AFP
In Iran, traders from China, Afghanistan, and Pakistan resumed purchases in July to benefit from their depreciated currency. However, to curb cashmere exports to China, which supports spinning factories in operation, the Iranian government introduced tariffs, preventing massive purchases that couldn’t be delivered immediately.
Shortening of goat hair
In addition to the economic crisis caused by the pandemic, global warming poses a threat to the industry.
The length and silkiness of extracted goat undercoat hair increase with lower temperatures, providing better defense against cold. This is explained by specialist consultant Robert R. Frank in his book “Silk, Mohair, Cashmere, and Other Luxury Fibers.”
Cashmere hair has a diameter of about 12.5-19 microns (about 1/5th the diameter of human hair), yielding 100-160g of usable down per goat per year. As it takes 4-6 goats for a simple jumper and 30-40 for a coat, the raw material remains scarce, and goats can only be raised in remote mountains and tundra areas.
As temperatures rise, goat hair shortens, requiring more goats to produce the necessary quantity, significantly impacting the quality and level of production.
Chinese dust storms
To cope with increased consumption and climate change, farmers resort to crossbreeding, sacrificing wool quality for higher production. Simultaneously, they must increase herd sizes, causing irreversible damage to the soil.
Cashmere goats consume more than 10% of their body weight in coarse feed daily, destructively consuming plants. Larger herds also contribute to soil erosion, exemplified by desertification in Inner Mongolia and frequent sandstorms in China, exacerbating serious environmental issues.
The goat’s fleece grows longer and silkier as the temperature drops. Frederick J. Brown/AFP
In addition to soil impact, larger herds pose risks such as insufficient feed, inability to care for goats, and the need for mechanical shearing over manual collection.
Consumer role
To prevent the demise of the cashmere industry, support for companies using cashmere wool in locations distant from production sites and technological innovations is essential. NAADAM, a startup in the United States, has implemented several initiatives since its founding in 2013, eliminating intermediaries to allow farmers to sell directly to processors at optimal prices.
Luxury groups purchasing cashmere fibers, such as Loro Piana, also participate. Kering launched the South Gobi Project in collaboration with the Wildlife Conservation Society in 2014, aiming to mitigate the impact of cashmere production by adopting a new, more responsible model that improves fiber quality, pasture management, and biodiversity conservation.
However, these actions, if isolated, are not sufficient. Larger steps upstream and downstream, as seen in Stella McCartney’s shift from virgin cashmere to recycled cashmere, are necessary.
The cashmere industry is truly facing a crisis, and its democratization seems to be a significant contributor. Particularly for the vulnerable community in Mongolia, to avoid human, economic, and ecological disasters, consumers must be aware of these issues.
