In 2025, transparency demands in the cashmere industry are deepening from fiber quality to on-farm animal welfare. The Aid by Trade Foundation and ARAWA have launched their second consecutive year of a herd health assessment project, moving beyond static certification toward continuous health monitoring.
Background
This assessment runs parallel to independent verifications under The Good Cashmere Standard. ARAWA evaluations provide a comprehensive overview of herd health on audited farms, going beyond standard verification checkpoints. Buyers will no longer see just a certification certificate but a set of trackable, comparable health data.
For high-end brands relying on GCS, this shift directly impacts supply chain audit depth. Previously, brands focused on whether farms held annual certification; now, they must examine specific scores and trend changes in health assessments.
Industry Impact
From an industrial perspective, this trend challenges major cashmere-producing regions—especially Inner Mongolia, Mongolia, and parts of Central Asia. Traditional small-scale or free-range farming makes systematic health data collection costly. Farms may need basic recording equipment or third-party testing partnerships to meet ARAWA requirements.
For buyers, this means refined supplier screening. The entry threshold may evolve from "GCS certified or not" to "certification plus health assessment grade." This could squeeze small- and medium-sized farms, accelerating concentration of raw material supply toward larger, more standardized operations.
Market transmission suggests rising compliance costs will eventually reflect in raw material pricing. Cashmere prices have been under pressure from weak demand since 2024, but welfare assessments may widen the premium for high-quality raw materials. Buyers must evaluate: accept higher costs to secure the high-end market, or shift to alternative fibers?
Practical Advice
For Buyers - Prioritize farms participating in dynamic health assessments like ARAWA, not just GCS certificates. This better reflects actual animal welfare levels. - Request two-year health assessment data trends from suppliers, not single results. Data continuity is more valuable than a single high score. - Include animal welfare compliance adjustment clauses in contracts to avoid supply disruptions from failed farm assessments.
For Farms and Raw Material Suppliers - Establish herd health records including vaccination, disease incidence, and weight changes. This is the baseline for passing ARAWA evaluations. - Consider long-term partnerships with accredited animal welfare assessment third parties, rather than ad-hoc inspection responses. - Evaluate cost-effectiveness of digital record-keeping tools—initial investment increases, but data transparency can secure long-term brand orders.
Overall, animal welfare standards in cashmere are shifting from "whether compliance is met" to "how compliance is sustained." This transition demands greater transparency and data management capability at every supply chain link. Farms and suppliers that adapt early will gain a competitive edge in the future high-end cashmere market.