Global Demand for High-Value Cashmere Sees Rebirth of Industry
2nd December 2022
A three-year ultra-premium fibre project is calling for farmers who are keen to ‘feel the potential’ of the $2B global cashmere fibre industry.
‘NZ cashmere – sustainably beautiful’ is a programme to restart the cashmere industry, led by New Zealand Cashmere and backed by Government.
New Zealand Cashmere director and Woolyarns General Manager Andy May leads the programme. He says it has a focus on assisting farmers with advice and support structures to restart the industry. “This programme aims to help farmers as they enter the industry so they can sustainably farm cashmere producing goats within their existing farm systems.”
Woolyarn’s International Marketing Manager Jimad Khan says cashmere fibre has strong, long-term global demand at the ultra-premium end of the market.
“Cashmere is not a commodity fibre. It historically returns between $110 - $150NZD/kg. It sits right at the top end of the luxury fibre market and it has a long-standing, loyal customer and consumer following. This is a very stable high-end market.”
“At Woolyarns we have relationships with leading European fashion houses who are looking to source sustainably produced ultra-high end cashmere fibre from New Zealand farmers. These relationships have enabled us to offer long-term fibre contracts through New Zealand Cashmere so farmers can learn how to produce cashmere to take advantage of this global market demand.”
Agriculture Minister Damien O’Connor today announced the Government’s $900,000 commitment to the programme over three years through the Ministry for Primary Industries’ Sustainable Food and Fibre Futures fund.
Andy May says New Zealand Cashmere and Woolyarns are investing to create an industry that is essentially in a start-up phase.
“We know this is a long-term investment for us. We have been here before and are committed to creating value for farmers. We have experience creating a viable industry for premium fibres from scratch. Through Woolyarns we pioneered the globally successful Perino yarn brand which underpins the $150m possum fibre industry in New Zealand today. We’re excited by innovation and the opportunity to be doing something similar again.”
“We have commissioned a first of its kind multimillion-dollar cashmere processing facility at our Lower Hutt operations to meet the customer demand – we know this is a long game, we’re investing now, and we will support farmers to supply this special fibre.”
Key workstreams of the programme include the development of traceability processes so the unique sustainability story and product attributes of the fibre can generate additional value in the market.
New Zealand Cashmere are working with New Zealand Cashmere Genetics Ltd who have been breeding cashmere-producing goats for more than 35 years. As part of the project, New Zealand Cashmere Genetics’s David Shaw is working with researchers from AbacusBio on the genetics programme to support the growth of the industry.
“The New Zealand cashmere goat has seen 35 years of genetic gain to produce a resilient, high performing and hardy animal that can now be farmed in a variety of different areas around New Zealand, with a particularly good constitution for under-productive hill country. All the time lifting the quality of this high value fibre.”
New Zealand Cashmere Business Development Manager Olivia Sanders is working with farmers wishing to take part in the establishment of herds as part of their farm systems.
“This is an exciting time for farmers to be part of the start of a high-value industry which is backed by a company with over 75 years of processing and marketing expertise. There are opportunities for farmers to get onboard early as breeding properties, pilot farms and growers.
Expressions of interest are being called from farmers wishing to participate in New Zealand Cashmere’s Foundation Flock Programme.
“This is an opportunity to be a pioneer in New Zealand’s ultra-premium luxury fibre industry.
“These farms will be supported by New Zealand Cashmere with technical on-farm support to become breeding properties to supply quality animals as seed stock to grow the industry, whilst enjoying the raft of benefits cashmere goats bring to their wider farming system.”
“The benefits of introducing them into farm systems go beyond diversification of revenue. They include improved pasture utilisation and up to 30% improvement in clover cover which benefits other stock classes. They are also a good form of biological weed control – reducing the use and costs of chemical sprays.”
ENDS