1. November 2011 Ministry of Commerce and Industry CASHMERE ACTION PLAN

2. Objectives of the Cashmere Plan  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 3

3. Issues to be addressed along the value-chain November 2011 4 TRADING Knowledge & Market Linkage Marketing & Branding MANUFACTURING/ PROCESSING WashingSpinning Weaving/ Knitting Manufacturing Garments & Accessories PRODUCING De-hairingHarvestingScouringGrading

4. Production related actions November 2011 3 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 PRODUCING De-hairingHarvestingScouringGrading Some key issues Only 30% of Afghan cashmere- producing goats are harvested Producers do not know to meet commercial grading requirements Buyers are unable to gain reliable supplies of graded cashmere

5. Manufacturing & processing related actions November 2011 4 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 MANUFACTURING/ PROCESSING WashingSpinning Weaving/ Knitting Manufacturing Garments & Accessories Some key issues Limited processing occurs in Afghanistan Limited skills in processing and manufacturing exists

6. Trading related actions November 2011 5 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 TRADING Knowledge & Market Linkage Marketing & Branding Some key issues Poor marketing of Afghan cashmere Poor international market linkages