Cashmere in Crisis

Cashmere is an unlikely candidate for controversy. It conjures up images of cozy, expensive scarves, made from the belly hair of goats roaming across the steppes of Mongolia, using techniques and skills honed over the centuries. It’s a luxe treat that has grown more accessible in recent years; see Naadam’s $75 sweater, for instance, or the rows of candy-colored pullovers in mass-market stores. Yet, though the price of a cashmere sweater might have dipped, the costs are higher than ever. Much like one of the bitter winters, known as dzuds, that menace Mongolia, this age-old industry faces a perfect storm of challenges: rising demand, surging temperatures and plunging prices for raw materials, which should put cashmere into any ethical shopper’s crosshairs.

First, demand. Cashmere forms almost 7 percent of the $71.2 billion global luxury industry alone, per Bain & Co.—more a problem than an opportunity when each goat’s yield is a meager four ounces of finished fiber. Farmers have boosted their flocks to better cater to the new market; some 29 million goats graze the steppes today, almost five