Ministry of Commerce and Industry CASHMERE ACTION PLAN November 2011 Objectives of the Cashmere Plan 3 The plan looks at actions to: Move the industry up the value chain through repatriating key parts of the value chain from neighbouring countries Increase processing of raw cashmere fibres Enable producers to earn higher prices for raw fibres Create the conditions in which private sector can move further up the value chain into the weaving of yarn September 2011 Issues to be addressed along the value-chain 4 TRADING Marketing & Branding Knowledge & Market Linkage MANUFACTURING/ PROCESSING Washing Spinning Weaving/ Knitting Manufacturing Garments & Accessories PRODUCING Harvesting Scouring De-hairing Grading November 2011 Production related actions 3 PRODUCING Harvesting Scouring De-hairing Grading Some key issues • Only 30% of Afghan cashmereproducing goats are harvested • Producers do not know to meet commercial grading requirements • Buyers are unable to gain reliable supplies of graded cashmere Examples: • Train producers and exporters on methods of grading raw cashmere • Distribute information on breeding, harvesting and handling techniques, including awareness of the pros and cons of sheering versus combing November 2011 Manufacturing & processing related actions MANUFACTURING/ PROCESSING Washing Spinning Weaving/ Knitting Manufacturing Garments & Accessories Some key issues • Limited processing occurs in Afghanistan • Limited skills in processing and manufacturing exists Examples: • Encourage investment in processing by reducing the risk of investing by identifying suitable government owned facilities that can be leased to investors • Demonstration visits to Macau Cashmere’s operations in Heart for cashmere farmers, traders or businessmen who are interested in moving up the value chain • Market study into the demand for cashmere garments for fair trade or artisanal market sector, accompanied by a feasibility study for the necessary equipment and techniques to set up a manufacturing facility in Afghanistan November 2011 4 Trading related actions 5 TRADING Marketing & Branding Knowledge & Market Linkage Some key issues • Poor marketing of Afghan cashmere • Poor international market linkages Examples: • Develop a detailed plan for hosting a website on which contact information for buyers and sellers can be posted • Develop a strategy for expanding into niche markets (Fair Trade, Handmade by Afghan women, Ecological Fibers) • Develop a global marketing strategy for Afghan cashmere based on lessons learnt from donor-funded cashmere marketing projects in other countries November 2011