Archive for September, 2024

SFA Mongolia Conference 2024 | Summary

Posted by Katy Edwards

"Overcoming Challenges & Meeting Expectations in Natural Fibres" - Summary of the SFA Mongolia Conference 2024

On 6th September 2024, SFA Mongolia successfully hosted their annual conference in Ulaanbaatar under the theme of Overcoming Challenges & Meeting Expectations in Natural Fibres.

The event was organised by the Sustainable Fibre Alliance (SFA) in collaboration with the Ministry of Food, Agriculture & Light Industry (MoFALI) and the Ministry of Environment & Tourism (MET) of Mongolia. Over 130 participants attended to discuss and seek solutions to critical issues facing the cashmere and wool sectors, such as climate change and risk resilience, pasture management, and improving cashmere quality.

Opening remarks were given by representatives from MoFALI and the Ministry of Environment & Climate Change (MECC). This was followed by a presentation from the SFA, highlighting our main objectives for implementing standards and our initiatives targeted at herders and cooperatives.

The event was then sectioned into three distinct topics:

  • Overcoming Dzud Disaster Risk
  • Rangeland Stewardship Council – Global Rangeland Standard
  • Opportunities & Requirements for Improving Cashmere Quality

Government representatives, herders, cooperatives, cashmere processing companies, brands, and international experts actively participated in the discussions.

Key Presentations

One of the central themes of this year’s conference was climate change, with a particular focus on overcoming the negative impacts of the Dzud disaster through preparedness and collaboration. Presentations were delivered by government officials, herders, cooperatives, researchers, and international experts, addressing ways to mitigate the social and economic impacts of natural disasters through efforts of advanced preparation to reduce livestock loss.

The first-panel discussion of the event featured key presentations:

  • Collaboration Between the Government & Herders in Dzud Preparedness
  • The Social & Economic Impact of Dzud as a Natural Disaster
  • Experiences & Lessons in Minimising the Impact of Dzud

G. Naranchuluun, Head of the Department of Livestock Policy Implementation Coordination at MoFALI, emphasised the current state of the livestock sector, the importance of preparedness for Dzud, and the critical nature of cooperation between the Mongolian government and herders. They highlighted the challenges posed by pasture degradation and environmental changes, noting that 8.1 million livestock were lost in 2023.

“The designation of 2026 as the ‘International Year of Rangelands & Pastoralists’ presents an opportunity to raise global awareness about the importance of Mongolia’s traditional pastoral systems and the value of healthy, organic products derived from this sector. We aim to use this year to promote the unique characteristics of nomadic livestock farming, its environmental benefits, and its sustainable practices while expanding international cooperation.”G. Naranchuluun

D. Kadirbek, Head of the Management Department at the School of Economics & Business at the Mongolian University of Life Sciences, presented the findings of a study conducted in cooperation with the United Nations Development Programme’s (UNDP) ADAPT Project. The study involved 1,001 herder households across 44 soums (regions) in Zavkhan, Khovd, Dornod, and Sukhbaatar aimags (provinces), providing detailed insights into livestock losses, economic damage, and the decline in herders’ income during Dzud, outlining the broader social and economic impacts.

“Livestock farming accounts for 12.8% of Mongolia’s GDP (Gross Domestic Product), 4% of its total exports, and provides 54% of the added value in food production. As such, the development of this sector is critical for the economy, food security, and livelihoods. We clearly see the direct link between the frequency of Dzud and climate change. In 2024, approximately 8 million livestock perished, accounting for about 10% of the national herd, marking the highest loss since 2010. This loss resulted in economic damage of 2.5 trillion MNT, leading to a 27% decline in agricultural GDP growth.”D. Kadirbek

Kh. Altantsetseg, representing the “Herders’ Cooperative Strength” from Bat-Ölzii soum in Övörkhangai aimag, shared the cooperative’s experiences and emphasised the importance of training, preparation, and skills in minimising the impacts of Dzud. Following the presentations, the SFA introduced a series of videos titled “Lessons from Dzud & Overcoming Its Challenges”,  summarising herders’ experiences and research findings on coping with Dzud.

Panel Discussions

Preparedness & Collaborative Efforts to Minimise Losses from Dzud

Rangeland Stewardship Council – Global Rangeland Standard

The Rangeland Stewardship Council’s (RSC) Global Rangeland Standard was introduced during the event, a new international system aimed at promoting sustainable rangeland management and responsible resource use in agriculture-based industries – including wool, cashmere, leather, meat, and dairy. This standard encompasses principles related to rangeland use, legal compliance, indigenous and local peoples’ rights, fair labour, and effective management.

A key solution for rangeland conservation and restoration, the standard is supported by the United Nations Convention to Combat Desertification (UNCCD) and the GEF-funded STELARR (Sustainable Investments for Large-Scale Rangeland Restoration) Project, implemented by IUCN and executed by ILRI. According to Louise Baker, Director of the Global Mechanism of the UNCCD, the standard offers the most effective pathway for preserving rangeland resources.

Senior Analyst S. Erdenetsetseg, from the Ministry of Environment, Climate Change & Tourism, shared current research on rangeland degradation and desertification in Mongolia, providing insights into the government’s initiatives to address these issues.

Open Roundtable on the RSC’s Global Rangeland Standard

Participants at the open roundtable and consultation discussion reviewed the draft version of the Global Rangeland Standard, submitting their feedback in writing. They discussed potential modifications, additions, and deletions to improve the draft. The consultation acknowledged that the standard could improve raw material quality, protect rangelands, and enhance herders’ livelihoods. It was also recognised that the standard could boost the value of cashmere and other animal-based raw materials, improving economic circulation in the sector.

To learn more about the Rangeland Stewardship Council and the development of the Global Rangeland Standard, please visit the RSC website at rangelandstewardship.org

Opportunities & Requirements for Improving Cashmere Quality

During this session, speakers highlighted the importance of improving the quality of Mongolian cashmere and raw material collection practices. Representatives from processing plants and herder cooperatives shared innovative practices for sorting and storing raw materials, such as switching from polypropylene to cloth bags. Research on improving cashmere quality through better feeding practices was also presented.

Key presentations included:

  • The Demand, Value & Importance of Certified Cashmere
  • Organising Breeding Programs to Improve Cashmere Quality
  • Results of Feeding Trials to Improve the Yield & Quality of Cashmere
  • Experiences & Lessons in Replacing Polypropylene Bags for Raw Cashmere
  • The Importance of Sorting Cashmere by Colour & Storing in Standard-Compliant Bags

During the panel discussion, Z. Uuganbayar, from Khanbogd Cashmere LLC, emphasised the critical role of herders in improving cashmere quality. He urged herders to avoid using damaged bags and eliminate the use of polypropylene bags. His company collaborates with the “Lusin Serchim” cooperative, which ensures raw cashmere is sorted and packed in labelled bags, streamlining the sorting and quality assurance processes.

SFA Herder Sustainability Awards

The highlight of the SFA Mongolia Conference is the presentation of the annual SFA Herder Sustainability Awards, supported by SFA brand and processor members, recognising the dedication toward the sustainability efforts of the participating herders and cooperatives for demonstrating leadership in sustainable practices, livestock management, and social responsibility.

Cooperatives “Khörkhiin Naran” from Nomgon soum, Umnugovi province, and “Janjin Tolgoi” from Erdenetsogt soum, Bayankhongor province, were recognised for improving the quality of cashmere preparation and increasing the value of raw cashmere from herders.

“Tselmeg Orkhon” a cooperative from Ölziit soum, Arkhangai province, was awarded for its high performance in training, evaluation, and continuous improvement.

The “Jinst Jiguur” cooperative from Bayankhongor soum, Bayankhongor province, was recognised for their successful efforts in training member herders against the SFA Standards.

Four cooperatives from three provinces were awarded for their quality improvement, increasing the value of cashmere from their member herders, high performance in training on SFA Standards, capacity building, and evaluation.

Five women herders were recognised for demonstrating their social responsibility and environmental stewardship in their sustainable livestock management.

“I’m sincerely grateful for SFA for constantly supporting us in improving the sustainable cashmere fibre structure and quality.”Gereltuya Shombuu, Best Female Herder awardee, Khovd province, Mongolia.

Five young herders were recognised for upholding traditional nomadic herding culture while embracing modern practices and managing livestock through environmentally friendly practices.

“I have joined the cooperative three years ago. There are many advantages to preparing animal produce and raw materials. I particularly find the SFA training provided by the cooperative useful. We improve our skills in goat combing and sorting fibre for the supply chain.”Tegshbayar Lhayambuu, Best Young Herder awardee from Khuvsugul province, Mongolia.

Five cooperative leaders were acknowledged for their success in collaborative efforts, leadership, and their role in social development.

Acknowledgements

The organisers of this year’s event would like to sincerely thank all the guests, speakers, herders, cooperatives, government representatives, and international organisations who participated in the SFA Mongolia Conference 2024: Overcoming Challenges & Meeting Expectations. Their contributions, insights, and shared experiences have provided invaluable input for our future activities.

The ideas and support presented during the conference will significantly contribute to the sustainable development of the cashmere and wool sectors and global competitiveness. We are confident that our collaborative efforts and the solutions we have developed will lead to tangible results and further support the growth of this vital industry.

We also extend our heartfelt gratitude to this year’s SFA Herder Sustainability Award supporters whose invaluable help made this event successful. Their generous contributions have helped reinforce our shared commitment to sustainability and recognise the hard work of Mongolia’s herders and cooperatives.

Thank you, and we look forward to continuing this journey of successful collaboration!

Tamir Bud

SFA COMMUNICATIONS OFFICER

26 September 2024

Original posted on 11 September 2024: https://sustainablefibre.mn/nfc-2024-sub-session-in-mongolia/ 

Climate Disaster Impact on Mongolian Cashmere Supply | 2024 Market Overview

Posted by Katy Edwards

This year, in 2024, the global cashmere supply chain experienced an unanticipated challenge due to the natural climate disaster that struck large regions of Mongolia this past winter and early spring. As the world’s second-largest supplier of cashmere, Mongolia was severely affected by the extreme winter weather event known as Dzud, specific to the regions of central and east Asia. Heavy snowfall covered entire regions, forming ice floors underneath the snow drifts, hindering herds from reaching grass and forage, resulting in an over 10% loss of livestock for the country.

According to the 2024 Dzud – Livestock Loss report from the Ministry of Food, Agriculture & Light Industry of Mongolia (MoFALI), 11.5% of the country’s livestock perished due to malnutrition, stamina, and extreme cold, totalling over 7.44 million livestock across the country. Of this total, an estimated 2.5 million goats were recorded to have been lost.

Figure 1. Livestock were unable to reach grasses and forage under the thick layer of snow and ice sheets due to Dzud.

As we continue to extend our support to the affected herders in Mongolia, it is essential to recognise the broader implications for the global cashmere supply chain. This disaster has led to a notable increase in raw cashmere prices due to reduced volume and delayed harvests. During the cashmere season of 2024, the price for raw cashmere fibre rose to 185,000 MNT per kg (approx. £40-£45), up from 165,000 MNT per kg (approx. £36-£38) the previous year. This price hike has resulted in lower purchase quantities by some producers.

Several factors have contributed to this year’s cashmere shortage, some of which are highlighted below:

1. Livestock Loss

The accumulated loss of goats, accounting for around 20% over the past two consecutive years, has drastically decreased the volume of raw Mongolian cashmere available to the market. In 2023, the ‘SFA-certified’ cashmere volume was 1,322 tonnes, while this year, it has reduced to 600 tonnes only, with a maximum expected volume of around 800 tonnes.

2. Delayed Harvesting

The freezing temperatures and longer-lasting cold weather have caused delays in the natural shedding time of cashmere goats, resulting in lower output and decreased fibre quality, with more coarse hair mixed into the greasy fibre.

Vandandorj Sumiya, SFA Mongolia’s Country Coordinator, explains, As combing is delayed, more coarse hair will be loosened, and greasy cashmere will have higher coarse hair content, thus after dehairing, the clean fibre content will be lesser than that of normal years.” 

Figure 2. Processors receiving 'SFA-certified' dehaired cashmere would not be affected by the upcoming Export Ban.

3. Export Ban

The Mongolian government’s upcoming export ban on non-dehaired cashmere, originally expected to be effective from the 1st of July 2024, could have prompted hasty purchases by non-national processors and driven up prices. However, the government has extended the effective date for this ban to July 2025.Nevertheless, this change would not affect processors supplied with dehaired cashmere from ‘SFA-certified’ sources in Mongolia. Some processing factories scheduled for SFA Clean Fibre Processing Standard audits may experience delays this year due to low fibre volumes, which should only cause minimal impact on the sector given the extended export regulation deadline.

4. Climate Risk Resilience

Triggered by climate change, the frequency and severity of natural events such as Dzud have begun to increase. However, with this increase in Dzud occurrences, effective coping and adaptation strategies are still lacking in some of Mongolia’s herding communities, especially in the country’s most remote areas. Climate risk resilience has become a key topic for the SFA this year and was the main theme of discussion during the annual SFA Mongolia Conference, held in Ulaanbaatar at the beginning of September 2024.

Figure 3. Mongolian herding communities received welcome supplies purchased by the SFA and supporting SFA Members.

Each of these factors has played its part, causing a potential ripple effect along the cashmere supply chain and throughout the market this year.

The SFA continues to work closely with herders, supporting them with long-term resilience and sustainability programmes, providing better market access, and mediating preferential financing. Through the continued support of our Members and Chain of Custody Participants, who rallied together at the beginning of the year to provide much-appreciated disaster relief funds, our efforts are now progressing towards establishing the SFA’s Community Development Fund. The fund aims to support targeted interventions to mitigate natural disaster impacts, such as Dzud, improving livelihood resilience and sustainability in herding communities.

The proposed activities of the SFA’s Community Development Fund address the critical issue of recurring climate disasters and the severe impact on herder livelihoods, such as livestock populations, mental and physical health, and providing essential support for female herders and herding communities that have been the most adversely affected. It includes:

  • Providing immediate financial support to fulfil the needs of food and basic amenities for herder communities. 
  • Supporting the community to restock their herd as their main source of income and livelihood activity. 
  • Research and action for continued support to build resilience for such situations through access to finance, livestock insurance, and capacity-building programmes.

Get Involved

By establishing the SFA Community Development Fund, the SFA encourages its Members and Chain of Custody Participants to work together to reduce the impact risk of natural disasters within the supply chains, such as the effects of Dzud and drought. Together we can enhance effectiveness, support socio-economic stability, and strengthen cashmere supply chain resilience against climate change.

Want to be a part of this crucial movement?

Contact us now to start making meaningful changes to strengthen the supply chain and support herder livelihoods. Email info@sustainablefibre.org

To learn more about this year’s Dzud disaster and our efforts to support herder communities, read our previous articles below:

Tamir Bud

SFA COMMUNICATIONS OFFICER

24 September 2024

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