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The Impact of Climate Change on the Cashmere Industry: Challenges and Solutions

May 30, 2025

Ariunzul Enkhbaatar

Head of Sustainable Development Department

Ariunzul Enkhbaatar

Head of Sustainable Development Department

As the Head of the Sustainable Development Division at GOBI Cashmere, Ariunzul is dedicated to ensuring responsible and ethical practices across every step of cashmere production. She leads efforts in environmental protection, social responsibility, and ethical governance while working closely with herders to support sustainable sourcing.
Passionate about Mongolian culture and the lives of the herders who make cashmere possible, she shares stories about their traditions, the craftsmanship behind cashmere garments, and how GOBI Cashmere upholds its commitment to sustainability.

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Cashmere, prized for its softness, warmth, and lightness, occupies a distinctive position in the global cashmere market. Far beyond a simple winter garment, it is a testament to skilled craftsmanship and deep-rooted cultural heritage.
However, like many natural resources, the cashmere industry faces growing threats from climate change. The impact of climate change on fiber-producing regions is disrupting ecosystems, altering production cycles, and threatening the livelihoods of herding communities.
As climate patterns become increasingly unpredictable, there is an urgent need for eco-friendly and responsible cashmere practices. From herders in Mongolia to global fashion brands, everyone along the chain must rethink how cashmere is made and sourced to protect its future.

How Cashmere is Produced and Where It Comes From

Understanding the cashmere journey, from the high-altitude regions where the goats roam to the skilled hands that process its delicate fibers, adds another layer of appreciation to this luxurious material. Let's uncover the secrets behind its creation.

Cashmere Is Made From What?

Cashmere is made from the soft undercoat of goats that thrive in cold, arid climates. Due to Mongolia's cold climate, these goats produce fine, warm fibers under their rough outer hair. The warmth and softness of this undercoat are the source of cashmere's excellent, natural insulation.
For centuries, traditional herding families have cared for these goats, following nomadic or semi-nomadic lifestyles. Their close relationship with nature and generational knowledge form the foundation of the cashmere industry.

Cashmere: How Is It Made?

The process of producing cashmere is labor-intensive and largely manual. In spring, when goats naturally shed their undercoats, herders comb out the fine fibers by hand. This gentle collection ensures the goats are not harmed.
Once collected, the fibers are sorted, washed, and dehaired to separate the soft cashmere from the rough outer hairs. Traditional techniques rely on careful hand sorting, while modern factories use advanced equipment for increased efficiency. The blend of old and new methods influences quality and environmental impact, so preserving traditional practices alongside innovation is vital.

Environmental Impacts of Climate Change on Cashmere Production

While we appreciate the softness and warmth of cashmere, it's crucial to understand the growing environmental challenges of its production.

Temperature Rise & Its Effects

Rising temperatures in goat-grazing regions reduce fiber density and alter cashmere quality. Goats that adapt to cold winters produce thicker undercoats in warmer conditions, which lowers their fiber yield. These climate change effects challenge goats' survival and the herders' ability to maintain traditional grazing patterns.

Changing Precipitation Patterns

Inconsistent rainfall patterns, droughts, and unexpected floods severely affect pasturelands. Scarce water affects plant growth, leading to poor grazing conditions and soil erosion. This impacts goat health, fiber growth, and food security, making the environmental impacts of climate change visible across vast landscapes.

Desertification and Land Degradation

As climate patterns shift and natural resources shrink, the land where cashmere goats graze is seriously threatened. One of the most serious challenges is desertification, where once-healthy pastures slowly deteriorate into dry, barren land.
Overgrazing, driven by market demand and shrinking pasture areas, leads to vegetation loss. Lands become barren without proper sustainable grazing practices, increasing vulnerability to dust storms and biodiversity loss. This directly connects to unsustainable pasture management, highlighting the importance of sustainable grazing methods, such as rotational grazing.
Mongolia desertification

Economic and Social Impacts

The challenges posed by climate change to cashmere production have significant economic and social repercussions, affecting everyone, from the herders on the ground to global markets and rural communities.

Economic Impacts of Climate Change

The economic impacts of climate change are evident in the cashmere industry. Lower fiber yields and compromised quality reduce herders' incomes. Rising costs for supplemental feeding, veterinary care, and pasture protection add financial strain. On a larger scale, the impact of climate change leads to volatile market prices and inconsistent supply for global brands.

Social Impacts of Climate Change

Beyond economic impacts, the social effects of climate change are deeply felt in rural communities. Displacement of families, especially in Mongolia, disrupts traditional lifestyles. Women, who are often responsible for collecting fiber and managing household care, face increased workloads and reduced income opportunities. Water and food scarcity in affected areas further strain community resilience.

Solutions and Sustainable Practices in the Cashmere Industry

A shift towards sustainable practices is essential to counteract the negative impacts of climate change and ensure a thriving future for the cashmere industry.

Sustainable Grazing Methods

Rotational grazing, where herders move goats between designated pastures, allows grasslands to recover naturally. This is one of the most effective sustainable grazing management techniques. Cultivating fodder crops, such as maize, reduces pressure on natural pastures, helping to maintain soil health and biodiversity.

Water Management Innovations

Water scarcity is a growing issue in areas where cashmere is produced. Rainwater harvesting systems and efficient drip irrigation improve water availability for pastures and fodder fields. These simple yet effective innovations protect water sources and improve resilience.

Breeding for Resilience

Selective breeding programs are helping herders develop goat breeds that are better suited to changing climates. By prioritizing heat tolerance, fiber quality, and disease resistance, these programs support long-term sustainable production practices. Crossbreeding also offers opportunities to improve productivity without increasing herd sizes.
Shima Seiki 3D knitting | GOBI Cashmere

Innovation, Technology & Brand Responsibility

The path toward a more sustainable and ethical cashmere industry is paved by innovation, the strategic use of technology, and a growing sense of brand responsibility.

Regenerative and Organic Production

Regenerative agriculture, which focuses on restoring soil health and promoting biodiversity, is gaining ground in the cashmere industry. Brands are working with herders to certify organic and responsible cashmere, ensuring eco-friendly and ethical production standards.

Technological Support for Herders

Modern technology is becoming a valuable ally. Satellite imaging and mobile apps help herders track real-time weather patterns, pasture conditions, and market trends. This enhances decision-making and pasture management, which are critical for sustainable pasture management.

The Role of Ethical Cashmere Brands

Ethical cashmere brands like GOBI Cashmere are leading the way in responsible sourcing. GOBI champions ethically sourced cashmere by partnering directly with herders, supporting eco-friendly practices, and ensuring fair wages. As one of the emerging sustainable cashmere brands, GOBI is dedicated to reducing its environmental footprint and promoting ethical trade.

Global Case Studies of Innovation

In Mongolia, the Sustainable Cashmere Project works with nomadic families to implement sustainable grazing practices and improve fiber quality.
In China, large-scale programs combat desertification and restore degraded pastures using native grasses and rotational grazing.
In India, community-led projects address water scarcity and promote fodder cultivation, improving resilience against climate change.

The Role of Consumers and Market Demand

The demand for ethically sourced cashmere is growing as consumers become more aware of product origins and environmental impact. Certifications like the Responsible Wool Standard and GOTS ensure transparency and eco-friendly processes.
Fashion’s corporate social responsibility (CSR) programs increasingly invest in sustainable production practices. For example, at GOBI, we emphasize direct trade, pasture protection, and herder welfare as part of our responsible sourcing model.

Final Thoughts: Building a Climate-Resilient Cashmere Future

The future of cashmere depends on collaboration. Everyone has a role in protecting this precious fiber, from herders and brands to consumers. We can build a climate-resilient and responsible industry by choosing ethical cashmere brands like GOBI Cashmere, supporting eco-friendly production methods, and promoting innovation.

Impact of Climate Change on the Cashmere Industry FAQs

How does climate change affect cashmere production?

Climate change affects fiber density, lowers quality, and increases health risks for goats, disrupting production and herding livelihoods.

What are sustainable grazing practices, and why do they matter?

Sustainable grazing practices, such as rotational grazing, prevent overgrazing, protect soil health, and ensure long-term pasture recovery, vital for healthy herds and high-quality fiber.

What does “ethical cashmere” really mean?

Ethical cashmere ensures the fair treatment of animals, responsible land use, and fair wages for herders, prioritizing eco-friendly, humane, and transparent production methods.

Can cashmere be sustainable and eco-friendly?

Yes, with sustainable grazing methods, responsible breeding, and regenerative practices, cashmere made from ethical sources can be luxurious and environmentally friendly.

How can consumers support sustainable cashmere brands?

By choosing ethically sourced cashmere, looking for transparency in sourcing, and supporting brands like GOBI that invest in eco-friendly and fair trade practices.

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