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Responsible Cashmere Round Table October 15, 2019 Vancouver, Canada Agenda • Responsible Cashmere Round Table Overview • Anne Gillespie, Stefanie Pokorski – Textile Exchange • The Cashmere Experience • Ukhnaa Sarangoo - AVSF • Anne Gillespie on behalf of CCMI • Mongolian Cashmere: working with the UNDP • Simon Cooper, Satoko Okamoto – UNDP • Farmed Cashmere: working on Standards • Anna Heaton – AbTF • Ayoshi Ayongxi – ICCAW • Hanna – Textile Exchange • Open Discussion • Stuart Antsee - South Gobi 80 Participants! 80 participants 38 Brands Australia - 2 India - 4 19 Services Austria - 1 Italy - 2 15 NGOs Bangladesh - 1 Japan - 3 4 Suppliers Canada - 11 Mongolia – 4 2 Associations China - 3 Netherlands – 4 2 Education Denmark - 1 Sweden – 5 1 Mining France -2 Switzerland – 1 Germany - 3 UK – 9 Hong Kong - 1 US - 23 Chatham House Rule “When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed.” RCRT Overview Anne Gillespie, Textile Exchange Responsible Cashmere Round Table (RCRT) The RCRT, as a neutral platform for cashmere buyers to learn about and understand the issues, opportunities, and solutions, brings the industry together to create a common understanding of the needs of all stakeholders, look for alignment on what solutions are needed, and work with the industry players to drive action.` What have we done so far? • Cashmere meetings at 2017 and 2018 Textile Exchange annual conferences • SFA conference and field visit in 2017 • Launch of Responsible Cashmere Round Table (RCRT) in 2019 • UNDP conference and field mission in 2019 • 5 RCRT meetings: presentations from programs active in Mongolia and China • Agreement to lead the International Buyers’ Group for the Mongolia Multi- Stakeholder Sustainable Cashmere Platform • Draft mapping of programs • Supported brands facing PR pressure Stakeholders Brands and Supply Chain Retailers NGOs Farmers and Herders Special Interest Groups Governments International Buyers’ Group Non- Brands and Mongolian Retailers suppliers NGOs Farmers and Herders Special Interest Groups Governments Cashmere Programs Mapping Stefanie Pokorski, Textile Exchange 50 Shades of “Sustainable” Inner Mongolia (China) • Sustainable Cashmere “Sustainable Standard (ABTF) Farms De-Hairing Washing Cashmere” • ICCAW mutton and cashmere standard Brand/ “Sustainable Processing Retailer Cashmere” “Responsible Nomads” Herders Co-operative Trader De-Hairing Washing “Sustainable “Noble Fiber” Cashmere” Mongolia • Sustainable Cashmere (SFA) • Responsible Nomads (Green Gold) • Sustainable Cashmere (AVSF) • South Gobi • Noble Fiber (MWCA) • TNC • more Questions 1. When was your organization established, and by who? 2. What are the mission/vision/goals of your work? 3. How many staff are involved in Mongolia and outside of Mongolia? 4. What are the key issues that you are working to address? 5. What are your modes of action: a) Working with herders b) Working with government c) Scientific research d) Establishment of best practices e) Other: 6. If you have a Standard or Code of Practice a) What areas does it cover? b) How is it verified? ( 1st, 2nd or 3rd party) c) Is this a standard that brands could use for their sourcing? 7. Do you collect any data or Key Performance Indicators? a) If yes, what do you collect? b) How is it verified c) Where is that information reported 8. Do you have a business model set up for moving cashmere from your projects through the supply chain? a) How do you trace the fiber? 9. What is your vision for the cashmere industry in Mongolia? a) What do you think it should look like by 2030? b) What will be different? Other Areas to Understand Further • Mechanisms • Verification • Financial • Chain of Custody / Traceability • Product Claims • Impact Measurement Watch for webinars! The Cashmere Experience Ukhnaa Sarangoo, AVSF Anne Gillespie for CCMI MONGOLIAN CASHMERE SECTOR- 40 YEARS OF DEVELOPMENT Ukhnaa Sarangoo, Project manager, AVSF Mongolian cashmere sector : Raw material production Raw material production Herd size , thousand heads Mongolian statistics 2018 Camel wool, Mongolian statistics 2018 1400 Yak wool, 260 433 4388 3939 Cashmere, 9200 27347 30110 Sheep wool, 33600 Mongolian cashmere sector : Raw cashmere production Raw cashmere production Export of scoured cashmere 300000 6000 30000 vs goat population 27336 251956.2 25000 250000 5000 223815.4 200000 205639.5 4000 20000 197181 192534.6 13883 15000 13267 150000 145379.5 3000 5413.5 5409.7 5286.6 10270 4988.2 9200 10000 8521 100000 104625.1 4035.3 2000 3597.7 5126 3015.5 5000 3316.75 3470.75 2130.25 2567.5 50000 1000 1281.5 0 0 0 1990 1995 2000 2005 2010 2018 2010 2012 2014 2015 2016 2017 2018 Goats, thous hds Raw cashmere production, tn Export oF scoured cashmere Sales, USD Mongolian cashmere sector : Processing and export Installed capacity vs production Cashmere product export thous. USD 10000 by category 9100 9000 Reprocessed cashmere 100.3 8000 7400 7000 Other cashmere items 6968.8 6000 5350 Cashmere coats and blazers 305.6 5000 4000 Cashmere knitwear 11499.2 3000 2800 2000 Cashmere blanket 267.2 2000 1680 1680 1440 1300 1000 680 Dehaired cashmere 54944.2 0 Scouring, tn Dehairing, tn Spinning, tn Knitting, Weaving, m Scoured cashmere thous pcs Installed capacity Production 2018 0 50000 100000 150000 200000 250000 Employees in cashmere sector • Herder family - 169 710 families • Herders - 288 700 herders • Professional workers - 7 200 • Engineers, technicians - 1 800 • Designers experts - 60 • Total - 297 760 persons Challenges: Pastureland degradation Non degraded area – decreased 10% Heavily degraded area - increased 5% High proportion of sites in Selenge, Arkhangai, Tuv, Khuvsgul, Khentii aimags shifted to higher degradation level Challenges: overgrazing Years Total From total Other indirect consequences: Horse Cow Camel Sheep Goat Herd size 66219 3939.8 4388.5 434.1 30109.9 27346.7 • Poor nutrition 2017 • Uncontrolled animal welfare Herd size 51632.2 3157.8 3176.6 434.1 22966.5 21897.2 • Weak constitution of herds suitable to • Decreased quality of animal actual products pastureland • Lack of water Overgrazing, - -782 -1211.9 0 -7143.4 -5449.5 head 14586.8 • Frequent dryness • Unbalanced ecosystem Overgrazing, -28% -24% -38% -31% -24% • Wild life migration % Best practices: Sustainable raw materials production Good Sustainable governance rangeland of management cooperatives Quality of raw materials and traceability Survey covered 684 herders of 14 soum in Bayankhongor, Arkhangai, Gobi Altai. 2017.08.11 2018.08.13 Impacts of resilience-based rangeland management Map of Bayan Uul PUG of Tsakhir soum, Arkhangai aimag 25 20 15 10 5 0 Үетэн Улалж Шарилж Алаг өвс 2017 2018 Photo monitoring sites presenting spring/winter pasture Best practices: Animal nutrition 4 seasonal rotation of pasture in the rangeland plan Forage preparation for spring / winter by Give the pasture a chance to compensate cooperatives. Financial resource : Sales of Grazing from non degraded pasture sustainable raw cashmere Best practices: Good governance of cooperatives Democratic administration and Access to domestic and transparent foreign market governance Operations with Payment of final development policies dividend to cooperative and plans members Best practices: Cashmere quality and traceability Raw cashmere harvesting in herders Herders cooperatives created the nuclear folks cooperative ware house. Zalaajinst white to improve the quality of cashmere Assurance of : Origin, traceability and Herd size of nuclear folk – 240 heads quality Best practices: Best quality thanks to the herders effort Cashmere quality harvested by herder 60 50 16.5 40 16 16.3 14.7 30 16.8 16.3 16.5 15 20 Fineness, micron 10 17.3 15.5 16.5 16.8 0 Trader Herder (1 year) Herder (Femal 2-4 Herder (Male 2-4 year) year) Raw cashmere delivery in textile factory Highest Average Lowest Further development – connecting sustainable cashmere initiative to local industries Close collaboration of herders and industries for the development of the sustainable cashmere value chain in Mongolia Conclusion • Scaling up existing best practices of sustainable cashmere • Continual support and training on sustainable production and consumption to target factories • Collaboration of multi-stakeholders to develop sustainable cashmere value chain Cashmere and Camel Hair Manufacturers Institute October 15, 2019 Vancouver Textile Exchange Sustainability Conference CCMI • International organization • Founded in 1984 representing the interests of the Cashmere & Superfine Wool • Incorporated in USA (State of industry New York) • Established by international leading processors of Cashmere fibers • Offices: • Recognized authority on • Biella, Italy international standards and other issues concerning luxury fibers • Tokyo, Japan • Portland, Maine 36 Members (Cashmere Council) • Brunello Cucinelli S.p.A. • Fukaki Woollen Textile Co Ltd • Cariaggi Lanificio S.p.A. • Hong Kong Sales (Knitwear) • Chifeng Dongrong Group • Hermès Textile Holding • DanRoy dva Shinto LOC • Johnston of Elgin • Erdos Cashmere Group • Loro Piana S.p.A. • Ezma Luxury Div of Essma • South Trading Ltd. • Falconeri s.r.l. • Sudwolle Group • Fibre Resources S.p.A. • Todd & Duncan Ltd. • Filati Biagioli Modesto S.p.A. • Toyoboshi Kogyo Co., Ltd • Filatura di Trivero S.p.A. • Z. Hinchliffe & Sons Ltd. 37 CCMI’s mission Maintain the integrity of Cashmere, Camel Hair Represent
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