Cashmere Supply Chain Transparency Upgraded: Animal Welfare Assessment Becomes a New Procurement Variable

The cashmere industry is undergoing a supply chain transparency upgrade that extends from fiber quality to pasture ethics. In 2025, the Aid by Trade Foundation (AbTF) and Animal Welfare Assessment (ARAWA) conducted their second consecutive pioneering project parallel to the independent verifications of The Good Cashmere Standard (GCS). ARAWA assessments provide a comprehensive overview of the health status of a herd on an audited farm, going beyond standard verification.

Background

The core of this assessment project is to integrate animal welfare indicators into the cashmere supply chain audit system. Unlike previous years that focused on farm management processes, ARAWA assessments directly target measurable herd health indicators such as body weight, coat condition, and lameness rates. This means that GCS-certified farms must now meet higher animal welfare standards to maintain market access.

For major cashmere-producing regions like Inner Mongolia and Mongolia, this change will directly impact farm operations. Previously, herders only needed to meet physical fiber specifications like fineness and length; now, they must invest more in veterinary services, stocking density control, and winter shelter facilities to pass stricter health audits.

Industry Impact

From an industry chain perspective, the AbTF-ARAWA collaboration will reshape brand procurement standards. European luxury and eco-fashion brands have long relied on GCS certification to prove supply chain sustainability. With the addition of ARAWA assessments, brands must now require suppliers to provide more detailed farm animal welfare data, or risk failing third-party audits.

For buyers, this trend brings two direct consequences: first, the supplier vetting cycle will lengthen as farms need more time to adjust operations; second, procurement costs for raw cashmere may rise. Investments made by farms to improve animal welfare will partially be passed on to raw material prices. Industry data shows that during the 2024 pilot phase, farms participating in ARAWA assessments saw average operating costs increase by 8% to 12%.

However, there are upsides. Farms that have already invested in animal welfare management will gain stronger bargaining power. To ensure supply chain stability, brands may prioritize signing long-term contracts with these high-compliance farms, thereby securing premium raw materials.

Practical Recommendations

For Buyers - Re-evaluate supplier lists: Use ARAWA assessment results as a hard screening criterion for the 2025 procurement season, prioritizing farms that have passed or are applying for the assessment. - Adjust procurement contract terms: Include animal welfare compliance clauses, requiring suppliers to provide farm health assessment reports, with transition periods and penalty mechanisms for non-compliance. - Communicate proactively with brand clients: Showcase progress in supply chain animal welfare compliance to downstream brands, using it as leverage to enhance cooperation levels or secure higher purchase prices.

For Farms and Foreign Trade Companies - Invest in farm infrastructure: Improve barn ventilation, water systems, and winter insulation, and hire professional veterinarians for regular check-ups to reduce animal disease incidence. - Establish data recording systems: From 2025, systematically record weight changes, vaccination history, and disease treatment records for each goat, providing traceable data for ARAWA assessments. - Monitor policy subsidies: Check whether local governments or industry associations offer special subsidies or low-interest loans for animal welfare improvements to alleviate initial investment pressure.