- Email: [email protected]
Marketing goat fibres
Small Ruminant Research 60 (2005) 215–218
Marketing goat fibres夽 J.M. van der Westhuysen Cape Mohair & Wool, Port Elizabeth, South Africa
Abstract Goat fibres that are produced, marketed and processed in commercial volumes are mohair and cashmere. These fibres constitute approximately 0.3% of all textile fibres. Mohair is produced in South Africa, Turkey, United States of America, Argentina, Australia, New Zealand and Lesotho. Production is dictated by price that is dependant on very fickle fashion trends. Over the past 15 years production declined from approximately 26–6.6 million. Marketing varies from rostered auction sales in some countries to sealed bid auctions and direct negotiations in other countries. The future of this industry will depend on the income derived from Angora goat farming relative to other alternatives. Cashmere is produced mainly in China, Mongolia and the Middle East. Production is in the order of 4 million kg dehaired fibre. Marketing has changed significantly since the liberation of economies in the producing countries, but is still to a large extent through trader middlemen. Over this period, China has also evolved from a raw material supplier to a cloth and apparel producer. These changes lead to an decreased flow of cashmere to European processors. © 2005 Published by Elsevier B.V. Keywords: Mohair; Cashmere; Production; Marketing
1. Introduction With the exception of a small volume of real goat hair which is still used in the weaving of tent covers by nomadic desert tribes, commercially produced goat fibres is limited to mohair produced by angora goats, cashmere produced by cashmere goats and a limited volume of intermediate types. Although these products respectively originated from the Ankara region of Turkey and the Northwest of India, production has 夽 This paper is part of the special issue entitled Plenary Papers of the 8th International Conference on Goats, Guest Edited by Professor Norman Casey. E-mail address: [email protected].
0921-4488/$ – see front matter © 2005 Published by Elsevier B.V. doi:10.1016/j.smallrumres.2005.06.033
spread to various other countries. So for instance, today mohair is produced in Turkey, South Africa, Argentina, the United States of America, Australia, New Zealand and Lesotho. Cashmere is found primarily in Central Asia, Sin Kiang, Tibet, Gobi, China, Mongolia, Kurdistan and Tsinghai. Obviously this wide variation in the development of these fibres, exposure to markets, cultures and economic factors had an outspoken effect on the marketing of these fibres. In addition the very limited and declining production of these fibres (Fig. 1) adds a further element to the role of these fibres in the textile industry. This paper sets out the changes in the marketing of these fibres to where the industry is today.
J.M. van der Westhuysen / Small Ruminant Research 60 (2005) 215–218
216
Fig. 1. World textile production.
2. Mohair Fig. 3. Mohair production in various countries.
2.1. Production Changes in the production of mohair are very much in reaction to the price of the primary product, which again is a result of the demand created by a very fickle fashion cycle. In the early 1970s demand for mohair started increasing in reaction to a growing hand knitting culture in Europe and the far East. This culture continued growing into the second half of the 1980s to the extent that it established a marketing structure of final products in the form of knitting shops throughout Europe and the far East. Since then this fashion declined and as a result the knitting yarn marketing structure virtually disappeared.
Fig. 2. World mohair production, South African production and CMW market share.
The production trend is summarized Fig. 2. In addition to this global change in production, significant changes occurred in the various mohair producing countries of the world. These changes are basically also the result of the income generated by mohair production relative to the income from alternative forms of livestock farming competing for the same substrate. These production changes are summarized in Fig. 3. Between 1988 and 2003, world mohair production decreased by more than 70% from 26 to 6.6 million kg, this decrease being greater in countries where other forms of farming proved more lucrative. At present the Angora goat population of the world totals approximately 2.6 million and the annual mohair production 6.6 million kg. This represents less than 0.02% of the textile production of the world. Market shares of the various countries are summarized in Fig. 4.
Fig. 4. World production.
J.M. van der Westhuysen / Small Ruminant Research 60 (2005) 215–218
217
Very little mohair is processed into final products in countries of origin so that raw or semi-processed mohair are essentially export products for which price is determined on an international market basis in the countries of origin. 2.2. Marketing The price of mohair is basically determined by the characteristics: • fibre diameter: 22–40 m; • length: 50–150 mm determined by shearing interval; • general appearance. Since fibre diameter increases with age, mohair is normally prepared for sale by classing it on the farm during the shearing process according to age group: • • • •
kid first and second shearing: 22–30 m; young goat third shearing: 31–34 m; adult fourth shearing and further: 35–40 m; general appearance.
In this regard classing standards also vary greatly being very stringent in countries like South Africa, Australia and New Zealand, but less so in countries such as the USA, Argentina and Lesotho. Although early processing of mohair (scouring and combing) is done in some countries of origin (e.g. South Africa), processing into final products is mostly done in countries other than those in which it is produced. So for instance the bulk of mohair production is exported to Europe and the far East. During the recent past China has emerged as a very prominent processor of mohair (Fig. 5). This demand chain means that the primary product, mohair is marketed in the countries of origin where after it is exported either in the raw (unprocessed) form or as scoured or combed secondary products (tops) to countries where it is to be processed into final products. The marketing of the raw product varies from orderly “open cry” auctions (similar to wool sales in Australia and South Africa) through sealed bid auctions (USA) to direct negotiations and purchasing by traders (Turkey and Argentina). More recently branding and participation in the demand chain and contract sales also account for limited trading of mohair.
Fig. 5. Mohair exports from South Africa.
Whatever system of marketing is applied, price formation mechanisms and the international price are based on the price determined on the large volume auctioned in South Africa. As with most products the price of the primary product is driven by the demand for the end product. To a large, extent mohair is a speciality fibre which is subject to fashion trends which makes the price of the primary product highly volatile.
3. Cashmere 3.1. Production Cashmere is the downy coat produced by cashmere goats from midsummer to winter in the cold Plateaus of Mongolia and China where 85% of the world’s cashmere is found. Production is extensive, highly seasonal and primarily from flocks run by pastoral nomads. In contrast to the mohair industry where fairly accurate production figures can be found through the more organized marketing systems, accurate figures on cashmere production vary greatly. It appears that the world production of cashmere is in the order of 11,000,000–14,000,000 kg per year. The quality of cashmere is determined by length, texture, colour and fibre diameter. The top quality cashmere (14–15 m used in knitted garments) comes from China (including inner and outer Mongolia) with lower quality (17–18 m used in weav-
J.M. van der Westhuysen / Small Ruminant Research 60 (2005) 215–218
218
resulted in that more lower priced cashmere products came onto the market from China and that European textile manufacturers have been experiencing increasing difficulties in purchasing sufficient quantities of either raw or dehaired cashmere to meet their needs. This “under supply” of cashmere has led to various projects aimed at producing cashmere in other countries including Australia, New Zealand and the United Kingdom. However, it appears as if, at workable price levels, demand will continue to exceed supply for the foreseeable future. Fig. 6. Cashmere production.
ing) coming mainly from Iran and Afghanistan. China and Mongolia have traditionally dominated the market producing 3500 tonnes of dehaired cashmere. This represents approximately 85% of world production (Fig. 6). 3.2. Marketing The extensive nature of production by nomadic groups, limited communications, informal trading cashmere either through traders or in China at central markets at set prices characterized the market. With the liberation of the Chinese economy, middlemen entered the equation so that competition grew and prices increased in the early 1980s. These increased prices resulted in resistance and a decrease in demand. Prior to Mongolia’s transformation to a capitalistic society, cashmere was processed at home or sent to Western countries for processing. Today Mongolian herders can sell their products to Mongolian traders, Chinese traders or directly to processors. Chinese developments have resulted in that higher prices are paid by Chinese traders so that more than half the Mongolian production is exported to China despite efforts of the Mongolian government to intervene. In inner Mongolia too, globalisation has resulted in that prices now respond much more rapidly to demand. In addition to the more effective flow of market forces, China also evolved from a raw material supplier to a cloth and apparel producer. These developments all
4. Conclusion The increasing cost of production of mohair under conditions where alternative production systems are less subject to, the risks of unpredictable volatile markets have over the recent past seen mohair production slide to an “all time” low. Although more focused marketing at retail level could achieve more stability, the end products of mohair are so subject to an unpredictable fashion cycle that the risks will remain to be part of the economy at producer level. In the cashmere industry, demand will continue to exceed supply for as long as the price of the raw product allow for profits further in the demand chain. The globalisation of this trade and its effects on cost of production will ultimately determine the future production of the fibre.
Further reading Alvigini, G.A., 1984. In: Mondadori, A. (Ed.), The Fibres Nearest to the Sky. Verona. APEC CEO Summit, 2001. A look at the cashmere market with a focus on China, www.chinaproducts.com. Mohair South Africa, 2002. Review, http://www.mohair.co.za. Russel, A., 1998. The Establishment of Cashmere Production in the European Union. Macaulay Land Use Research Institute, Craigiebuckler, Aberdeen AB15 8QH UK. Van der Westhuysen, J.M., Wentzel, D., Grobler, M.C., 1988. Angora goats and mohair in South Africa. ISBN 0-620-12796-1. Warner, G., 2000. Globalisation of the cashmere industry in Mongolia. http://www.american.edu/TED/mongolia.
Marketing goat fibres夽 J.M. van der Westhuysen Cape Mohair & Wool, Port Elizabeth, South Africa
Abstract Goat fibres that are produced, marketed and processed in commercial volumes are mohair and cashmere. These fibres constitute approximately 0.3% of all textile fibres. Mohair is produced in South Africa, Turkey, United States of America, Argentina, Australia, New Zealand and Lesotho. Production is dictated by price that is dependant on very fickle fashion trends. Over the past 15 years production declined from approximately 26–6.6 million. Marketing varies from rostered auction sales in some countries to sealed bid auctions and direct negotiations in other countries. The future of this industry will depend on the income derived from Angora goat farming relative to other alternatives. Cashmere is produced mainly in China, Mongolia and the Middle East. Production is in the order of 4 million kg dehaired fibre. Marketing has changed significantly since the liberation of economies in the producing countries, but is still to a large extent through trader middlemen. Over this period, China has also evolved from a raw material supplier to a cloth and apparel producer. These changes lead to an decreased flow of cashmere to European processors. © 2005 Published by Elsevier B.V. Keywords: Mohair; Cashmere; Production; Marketing
1. Introduction With the exception of a small volume of real goat hair which is still used in the weaving of tent covers by nomadic desert tribes, commercially produced goat fibres is limited to mohair produced by angora goats, cashmere produced by cashmere goats and a limited volume of intermediate types. Although these products respectively originated from the Ankara region of Turkey and the Northwest of India, production has 夽 This paper is part of the special issue entitled Plenary Papers of the 8th International Conference on Goats, Guest Edited by Professor Norman Casey. E-mail address: [email protected].
0921-4488/$ – see front matter © 2005 Published by Elsevier B.V. doi:10.1016/j.smallrumres.2005.06.033
spread to various other countries. So for instance, today mohair is produced in Turkey, South Africa, Argentina, the United States of America, Australia, New Zealand and Lesotho. Cashmere is found primarily in Central Asia, Sin Kiang, Tibet, Gobi, China, Mongolia, Kurdistan and Tsinghai. Obviously this wide variation in the development of these fibres, exposure to markets, cultures and economic factors had an outspoken effect on the marketing of these fibres. In addition the very limited and declining production of these fibres (Fig. 1) adds a further element to the role of these fibres in the textile industry. This paper sets out the changes in the marketing of these fibres to where the industry is today.
J.M. van der Westhuysen / Small Ruminant Research 60 (2005) 215–218
216
Fig. 1. World textile production.
2. Mohair Fig. 3. Mohair production in various countries.
2.1. Production Changes in the production of mohair are very much in reaction to the price of the primary product, which again is a result of the demand created by a very fickle fashion cycle. In the early 1970s demand for mohair started increasing in reaction to a growing hand knitting culture in Europe and the far East. This culture continued growing into the second half of the 1980s to the extent that it established a marketing structure of final products in the form of knitting shops throughout Europe and the far East. Since then this fashion declined and as a result the knitting yarn marketing structure virtually disappeared.
Fig. 2. World mohair production, South African production and CMW market share.
The production trend is summarized Fig. 2. In addition to this global change in production, significant changes occurred in the various mohair producing countries of the world. These changes are basically also the result of the income generated by mohair production relative to the income from alternative forms of livestock farming competing for the same substrate. These production changes are summarized in Fig. 3. Between 1988 and 2003, world mohair production decreased by more than 70% from 26 to 6.6 million kg, this decrease being greater in countries where other forms of farming proved more lucrative. At present the Angora goat population of the world totals approximately 2.6 million and the annual mohair production 6.6 million kg. This represents less than 0.02% of the textile production of the world. Market shares of the various countries are summarized in Fig. 4.
Fig. 4. World production.
J.M. van der Westhuysen / Small Ruminant Research 60 (2005) 215–218
217
Very little mohair is processed into final products in countries of origin so that raw or semi-processed mohair are essentially export products for which price is determined on an international market basis in the countries of origin. 2.2. Marketing The price of mohair is basically determined by the characteristics: • fibre diameter: 22–40 m; • length: 50–150 mm determined by shearing interval; • general appearance. Since fibre diameter increases with age, mohair is normally prepared for sale by classing it on the farm during the shearing process according to age group: • • • •
kid first and second shearing: 22–30 m; young goat third shearing: 31–34 m; adult fourth shearing and further: 35–40 m; general appearance.
In this regard classing standards also vary greatly being very stringent in countries like South Africa, Australia and New Zealand, but less so in countries such as the USA, Argentina and Lesotho. Although early processing of mohair (scouring and combing) is done in some countries of origin (e.g. South Africa), processing into final products is mostly done in countries other than those in which it is produced. So for instance the bulk of mohair production is exported to Europe and the far East. During the recent past China has emerged as a very prominent processor of mohair (Fig. 5). This demand chain means that the primary product, mohair is marketed in the countries of origin where after it is exported either in the raw (unprocessed) form or as scoured or combed secondary products (tops) to countries where it is to be processed into final products. The marketing of the raw product varies from orderly “open cry” auctions (similar to wool sales in Australia and South Africa) through sealed bid auctions (USA) to direct negotiations and purchasing by traders (Turkey and Argentina). More recently branding and participation in the demand chain and contract sales also account for limited trading of mohair.
Fig. 5. Mohair exports from South Africa.
Whatever system of marketing is applied, price formation mechanisms and the international price are based on the price determined on the large volume auctioned in South Africa. As with most products the price of the primary product is driven by the demand for the end product. To a large, extent mohair is a speciality fibre which is subject to fashion trends which makes the price of the primary product highly volatile.
3. Cashmere 3.1. Production Cashmere is the downy coat produced by cashmere goats from midsummer to winter in the cold Plateaus of Mongolia and China where 85% of the world’s cashmere is found. Production is extensive, highly seasonal and primarily from flocks run by pastoral nomads. In contrast to the mohair industry where fairly accurate production figures can be found through the more organized marketing systems, accurate figures on cashmere production vary greatly. It appears that the world production of cashmere is in the order of 11,000,000–14,000,000 kg per year. The quality of cashmere is determined by length, texture, colour and fibre diameter. The top quality cashmere (14–15 m used in knitted garments) comes from China (including inner and outer Mongolia) with lower quality (17–18 m used in weav-
J.M. van der Westhuysen / Small Ruminant Research 60 (2005) 215–218
218
resulted in that more lower priced cashmere products came onto the market from China and that European textile manufacturers have been experiencing increasing difficulties in purchasing sufficient quantities of either raw or dehaired cashmere to meet their needs. This “under supply” of cashmere has led to various projects aimed at producing cashmere in other countries including Australia, New Zealand and the United Kingdom. However, it appears as if, at workable price levels, demand will continue to exceed supply for the foreseeable future. Fig. 6. Cashmere production.
ing) coming mainly from Iran and Afghanistan. China and Mongolia have traditionally dominated the market producing 3500 tonnes of dehaired cashmere. This represents approximately 85% of world production (Fig. 6). 3.2. Marketing The extensive nature of production by nomadic groups, limited communications, informal trading cashmere either through traders or in China at central markets at set prices characterized the market. With the liberation of the Chinese economy, middlemen entered the equation so that competition grew and prices increased in the early 1980s. These increased prices resulted in resistance and a decrease in demand. Prior to Mongolia’s transformation to a capitalistic society, cashmere was processed at home or sent to Western countries for processing. Today Mongolian herders can sell their products to Mongolian traders, Chinese traders or directly to processors. Chinese developments have resulted in that higher prices are paid by Chinese traders so that more than half the Mongolian production is exported to China despite efforts of the Mongolian government to intervene. In inner Mongolia too, globalisation has resulted in that prices now respond much more rapidly to demand. In addition to the more effective flow of market forces, China also evolved from a raw material supplier to a cloth and apparel producer. These developments all
4. Conclusion The increasing cost of production of mohair under conditions where alternative production systems are less subject to, the risks of unpredictable volatile markets have over the recent past seen mohair production slide to an “all time” low. Although more focused marketing at retail level could achieve more stability, the end products of mohair are so subject to an unpredictable fashion cycle that the risks will remain to be part of the economy at producer level. In the cashmere industry, demand will continue to exceed supply for as long as the price of the raw product allow for profits further in the demand chain. The globalisation of this trade and its effects on cost of production will ultimately determine the future production of the fibre.
Further reading Alvigini, G.A., 1984. In: Mondadori, A. (Ed.), The Fibres Nearest to the Sky. Verona. APEC CEO Summit, 2001. A look at the cashmere market with a focus on China, www.chinaproducts.com. Mohair South Africa, 2002. Review, http://www.mohair.co.za. Russel, A., 1998. The Establishment of Cashmere Production in the European Union. Macaulay Land Use Research Institute, Craigiebuckler, Aberdeen AB15 8QH UK. Van der Westhuysen, J.M., Wentzel, D., Grobler, M.C., 1988. Angora goats and mohair in South Africa. ISBN 0-620-12796-1. Warner, G., 2000. Globalisation of the cashmere industry in Mongolia. http://www.american.edu/TED/mongolia.